Most Common Overlooked Parts of a Franchising Agreement

A trademark licensing and franchising agreement in Miami is the legal contract that binds a franchiser to a franchisee and allows them to represent the company accordingly. These agreements typically include the same, universal details including specific instructions or protocols to follow that are specific to the franchise, the rights of each party, and the specifics of monetary portions. Unfortunately, however, many franchising agreements tend to overlook a few key aspects of the arrangement.

Renewal Rights and Possibilities

A contract usually states the term of validity; however, it is always a good idea to include the details of renewal rights and possibilities. Entering into a contract is legally binding by the State, which means once it is signed, little negotiation is possible. All the terms should be agreed upon before the contract becomes effective, and that means determining renewal factors.

Reservation of Rights

As a franchisee, one does not have the same rights they would have if they had created their own business—they must follow the protocol of the franchise in order to achieve uniform. Another area that should not be overlooked, yet usually is, is the specifics of the rights the franchisee to the company.

Details of Operations Manual

The operations manual is what determines how a franchise is operated and run on a daily basis. The procedures this manual covers can often exclude the minor details including hours the business should be in operation and the rights the franchisor has to change these techniques.

Every right and every detail is important when it comes to a partnership like a franchise. Overlooked details can lead to conflict and, even worse, legal troubles. Be sure to always check and recheck contracts and agreements, and you could avoid a major problem.