A Franchise relationship is an arrangement wherein a license to conduct business under a specific brand’s name is given to an independent business owner providing the owner the benefits of a big business network. This arrangement helps these business owners in terms of capital, speed of growth, motivated management, and risk reduction. This contract is hence made between a franchisor and a franchisee. And the terms and conditions of this agreement vary depending upon the state’s jurisdiction and franchise’s system of the franchisor.
1) Understanding the requirement of both the franchisor and franchisee and the brand name for which the franchising is being done.
2) After the discussion between the parties, a contract will be drafted by the experts, after which it shall be given to the parties to review.
3) Once the parties approve it, the contract is finalized and the license will be granted to the franchisee.
As it can be appreciated, time taken for contract drafting depend largely on the complexities of the subject matter covered. But on an average, we conclude the process within 02 to 04 working days.
1) Franchisor & franchisee details
2) Terms for franchise fee & consideration
3) Details about the business operations
4) Details about the use of trademark &intellectual property
5) Whether the assignment of franchise is transferable or not
Some of the questions to consider are whether the franchise owner is the true and documented owner of the franchise, whether the franchise does not infringe on any rights/ownership etc of another party, whether the franchise is in compliances with all major laws and policies which are specific to the business as well as general, etc.