A Lengthy, Complex Legal Document
Your franchise agreement will contain between 20-30+ parts, each containing the relevant sections and sub-sections that govern the terms, conditions, rules, restrictions, covenants, and other legal terms binding you to the franchise opportunity. At first glance, the agreement will be overwhelming and not easy to read or understand; hence, the need for a franchise lawyer.
Nonetheless, you will find some sections that outline basic terms such as royalty payments, territory, site selection, and the training program. Some of the more complex sections include the transfer of the franchise, termination, and the pertinent right for both you and the franchisor in the event of a termination, closure, or transfer.
No Two Franchise Agreements are Alike
No two agreements are alike, yet their legal design and objective are the same: to protect the franchisor from any irreparable damage that can be caused by a non-complying franchisee; and, to protect the franchisee from potentially failing at the business by outlining the required operational guidelines to succeed.
Most lawyers would agree that the franchise agreement is written in favor of the franchisor, and in many ways it is this entity that has the most to lose. Every failed or transfered franchise outlet has to be disclosed in the UFOC. At the same time, a franchisee that does not receive the promised support and obligations from the franchisor outlined in the agreement has the right to sue for damages and/or walk away from the business.
Read a Real Franchise Agreement
There aren’t many franchise agreements available online for you to review. Even if there were, you could not judge that agreement against the one you will receive from the opportunity you are pursuing. The legal content and fine print can vary drastically. Franchise agreements are highly confidential but we have managed to find a website containing several real franchise agreements, among other related franchising documents. These are likely outdated and meant for reference purposes only.
