Opening a franchise is an exciting venture. Many franchises have been around a while so they’re well established. This gives you the benefit of having a plan that’s been proven to follow when you open your business.
Before you can officially start the franchise, you have to sign a franchise agreement. This outlines what responsibilities and rights you have, as well as the franchise. It’s imperative for you to understand this agreement since it governs your business.
What are the training terms?
One positive point about opening a franchise location is that you can expect training. Franchises are usually known for very specific things. During training, you’ll learn how to uphold the brand’s image and do things the way the parent company expects.
How is intellectual property handled?
Intellectual property, such as trademarks, is important to a franchise because they have to do with how the company is viewed. Your agreement should spell out which intellectual property you’re being allowed to use and if there are any restrictions on the usage.
What is the fee structure?
You have to pay for using the franchise’s name and other information. Make sure you review the fee structure, as well as the term and the renewal method for the agreement. Together all of this lets you know your basic financial responsibility to the franchise.
Anyone who’s considering entering into a franchise relationship should ensure they understand the contract — before they sign. These can be very detailed, so it’s best to work with someone familiar with them. They can look over the document and point out anything you might have missed and help you to ensure that the agreement is right for your needs.