Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

What should I look for in a franchising agreement?

Starting your own franchise is a wonderful way to own your own business. It can enable you to have autonomy and independence while still having a support system in place. Before launching your franchise, you should be aware of several important components that should be in the contract you will sign.

One key item that every franchising contract should have is what the franchisor’s obligations are. At minimum, you should be able to learn what kind of support you will have as you launch your business. Any fees that will be assessed for that support should also be spelled out in the document.

As Entrepreneur magazine points out, the franchising agreement should have clear language that outlines how your operation must run. This will enable you to understand what is expected of you. If the contract seems vague, you should ask for clarity so you do not risk making a mistake and facing legal repercussions. If any of the rules make you uncomfortable, you may want to speak with the franchisor about them or search for another opportunity.

Another important aspect of these contracts is a clause that specifies the protection you would have against same-brand competition. For example, if you are going to start offering a service through a franchise and someone else in your area starts doing the same, do you have any legal protection? Prior to investing your money into an operation, you should feel confident that you will not have to worry about competition from someone else promoting the same brand.

Lastly, make sure the agreement has information regarding how any dispute that arises may be resolved. The document could list arbitration as an option as well as dictate that the losing party will pay for the other side’s attorney fees.

While this information may be useful, it should not be taken as legal advice.

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road
Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.