Legal Advice on Franchise Agreement

Franchisee agreement is one of the most important legal formalities that need to be fulfilled by two parties, the proprietor and franchisee while taking the franchisee of a business. Franchisee business refers to a kind of partnership business where a party or company takes the responsibility of marketing and selling the products of another company as its agent. In case of franchisee business the company selling and marketing the products get commission from the parent company as per as the contract with each other.

So franchisee is a serious issue and thus it is very much important seek legal advice on franchisee agreement for both parties before doing any kind of paper works.

If you are a businessman and planning to do some franchise business in partnership with some other company you must consult with an advocate or attorney and work according to his legal advice on franchisee agreement. Before signing any kind of business agreement partners need to fulfill various legal formalities which includes verification of some documents and check whether they are genuine or not. If you are a franchise legal advice on franchisee agreement for your part would be to check all financial details of your franchisers.

Before signing a franchise agreement it is your right to ask the franchiser to disclose all financial details, the list of other franchisees, litigation information and the directors' interest in making you the franchisee of the company. Similarly you would also be asked by the legal advisor of the franchiser to disclose all of your financial details, documents and litigation information. After checking all records and documents your legal advisor will decide whether you should go forward for signing the franchise agreement or not.

Generally legal advice on franchise agreement on part of franchisee should be start the business seven days after signing the contract. Your legal advisor might also advice you to join the association of other franchisees of the company. Generally a franchise agreement should cover some particular points like term of the agreement, territory where you will be working as the franchisee, fees that you will be getting from the franchiser, the support that you should get from the franchiser for your business operation, restrictions on things that you cannot do as the franchisee and exit from the partnership. If your legal advisor agrees with all these points he or she will give you green signal for signing the agreement.

On the other hand, if you are a franchiser and planning to accelerate your business through franchisees legal advice on franchise agreement on your part will be to allow your franchisee so that he or she could consider herself as a part of your company. But before doing that you must have a fair and clear franchise agreement with the franchisee because it is the most valuable document of the deal. Apart from that, as a franchiser it is your duty to give support to your franchisees with products so that they can prosper. Besides you need to provide proactive remedies to your under performing franchisees.