Buy A Franchise – Franchise Agreements Pt 1

October 6th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

All good Franchise systems will require that Franchise Agreements are the same for all Franchisees. As a consequence, they will generally make the statement that the Franchise Agreement is a non-negotiable instrument. If a Franchise system allows for the negotiation of the various clauses contained within its Agreement that should be an indication that their own belief in their system is not as strong as you might think. Yet the system is what a Franchisee will be investing in, so…

That’s not to say that Franchise Agreements don’t evolve over time to consider current business practices and opportunities. However, in any short-term time window, the Agreement will be the same for all Franchisees joining the system. If you think about that premise, that’s really what Franchising is all about.

The Franchisor offers a consistent system of value to all its Franchisees, including a uniform support system, branding strategies, operating systems, and administration systems. That’s a primary reason for Franchisees to invest in becoming a Franchise within the system – because those things all deliver a great value as opposed to starting from scratch.

Therefore it is imperative that the Agreement between a Franchisor and each Franchisee is the same so that everyone knows the playing field is even. The Agreement is really a description of the business systems, and the rules of engagement for that system. Each Franchisee should review that Agreement to ensure that those systems and those rules of operation make sense for them. Each Franchise Candidate should make the decision that ‘yes, this makes sense to me, and I can prosper in this relationship, control my own outcomes, and build an asset for the future’.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

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