Thu. Oct 29th, 2020

Franchise business opportunity is a lucrative option for many people. As it comes with assured profit and less risk, people who can afford it prefer this model rather than establishing their own business. Many people also take this challenge to prepare the ground for establishing their emperor. Whatever the reason, the Franchise Agreement will be the base of the relation between the franchisor and the franchisee. Whatever the terms and conditions, the franchisees have to follow will be documented on that agreement.

In case of any dispute in the future, the franchise lawyer will try to find the resolution from the Franchise Disclosure Documents or FDD only. As the franchisors are solely responsible to craft the documents, the experienced attorneys help them by hiding some secrets in the contract itself so that they will get some benefits in the future. Franchise dispute is a very common thing and to get upper hand in the litigation, this is a secret most of the franchisors have.

  1. Noncompetition: If you check the Franchise Agreementclosely, you may find the noncompetition agreement. Through the legal language, it set the tone for the franchisee about his or her planning after leaving the franchise. It explains the scenario in case the contract will be terminated whether he or she can start a business in the same industry without using the brand name. You need to consult with the franchise attorney regarding this matter.
  2. Auto-Renewal Plan: After ending one franchise agreement, the franchisors will send another set of agreements to the franchisee. You should not assume that the previous and present agreements are the same and you don’t need to verify it from the attorney. This may be a huge mistake as there may be many clauses that are changed or replaced. So, don’t sign the new contract immediately and get it reviewed by the attorney first.
  3. Competition in the family: Many people have other family members who own some businesses or franchises that are competitors of the brand. In the agreement, there can be a clause that no relative can own a competitive business. In case, anyone does that, the franchise agreement will be terminated. 
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