The franchise contract template is an agreement template which is available to cater to the formatting needs of this kind of contract. It is a very important document in any transaction process. A legal commitment between the franchisor and the franchisee would be automatically formed after this contract is signed. In the franchise agreement, the promises made by franchisors should be presented in written form for the franchisee, and should be subjected later on to careful examination and scrutiny. During this sell or buy process, a legal advisor should be available besides the franchisee in order to help discerning the effects and meanings of the agreements.
When it comes to reviewing the agreement, the attorney and the one which is in need of the contract should confirm whether the legal documents presented adheres to everything that all of the involved parties need and whether or not it is suitable to everything that has been told to you so far. If you find the agreement will bring you disadvantages, then it is necessary to consider the possibility of withdrawing from the contract. Or, if you choose to proceed with whatever listed on the contract, you can choose to negotiate any unfavorable terms on your part with your partner. However, keep in mind that the deal would be sealed once a signature has been given to the contract, and when that happens, no one would have a choice but to follow what has been agreed by mutual terms, or else they need to face the consequences.
There are two primary parts of franchise contracts. The first is the agreement on the purchase, while the second is the license or franchise agreement. For the matters of convenience of all parties, the transaction of the franchise would occasionally be divided into two parts. Some of the companies choose to have two agreements signed for this purpose, each contract meant for each agreement, instead of having only one. Even though it is not an ultimate necessity to have two agreements, it could be a better measure of preventing things that might go wrong in the future as the contract would be made comprehensive and might be able to cover specific service packages better. The purchase contract would cover the price, the package that comes with the franchise, as well as the services that are offered. On the other hand, the license and the franchise agreement would cover the obligations which are undertaken by the franchisors and the ones that are enforced on the franchisee, the rights that are promised to the franchisee, the trading restrictions that are imposed on the franchisee, the termination clauses and provisions, as well as death or the assignment given to the franchisee.
Below is one sample of the agreement. Remember not to copy the agreement as it is because it might not suit with your current conditions.
Franchise Agreement Sample (137.5 KiB, 100 hits)