What is a Franchise Agreement?
12 Aug • Insight
If you’ve decided on becoming a sales and lettings franchisee, and you’ve taken those first steps for us to get to know one another more at a Discovery Day, you might be wondering what’s next. After you’ve been accepted as a franchisee, the next step is to sign a franchisee agreement. This is a contract that is legally binding, between the franchisee and the franchisor, and it will detail how the relationship works.
You can expect it to include a range of things that will be relevant to your journey as a franchisee, whether that be payment terms or agreement length, or details on when it’s time for renewal, expected practice within relation to the brand and any information on the sale of an already established franchise unit. It typically, in a nutshell, gives you the right to operate with our trademark.
Why do you need a franchise agreement?
A franchise agreement is put in place to ensure that both the franchisor and the franchisee are protected throughout the agreement. It’s an important document, and helps you to lay out your legal requirements, putting you in a good stead to understand what happens in various scenarios, such as if you were to terminate the contract whilst trading. Not only this, but as the agreement details so much about your franchise journey, it helps you to understand what to expect, and what is expected. Keep in mind that it’s crucial that you continue to follow the law outlined within the agreement throughout your journey as a franchisee.
It’s definitely advisable for this document to be read thoroughly, and it must be understood. Consult a legal counsel to take you through the agreement, as you want to ensure that you’re happy with everything and fully informed.
How we can help
If you’re considering starting your franchisee journey, a Discovery Day is where it all starts with the Belvoir Group. You can immerse yourself in what it means to be a sales and lettings franchisee with us, and we can learn a little more about you. Then, you can take your next steps.