For European Franchisees Understanding What Are The Things That You Should Incorporate with

For every franchisee, the franchise agreement is the guidebook that will help them to understand all the rules, regulations, clauses, strategy and guidelines so that they can follow it properly to carry forward the brand name and avoid dispute. The European Franchisees own the right to run the business under the same brand name for a particular territory. They have to develop and control all the activities that support the business.

However, the main part of the franchise system is the agreement and as the franchisee you have to take care of the aspects that will be included in it.

  • Introduction: It is the preamble of the agreement that defines the key elements along with a description of parties, the present franchise system, and its history, ownership, transmitted documents, the mutual objective for the European Franchisees.

  • Granted Rights: Here the description of how the franchisor grants the right to use the license of brand name and intellectual property.

  • Territory: In the agreement, the territory of the franchisees must be mentioned as it will define the area where they are allowed to do the activities.

    Also Read : https://mutuallydivine.com/what-are-the-things-that-you-must-include-in-a-franchise-agreement/
  • Development Schedule: If the franchisor has any plan to grow the business in the future depends on the performance of the franchisees, which should be mentioned in the agreement itself.

  • Fees: The franchisee has to pay the fees in two divisions; the first one is the initial fees and the second one is the royalty which is the continuous payment.

  • Advertising: The success of the franchise system hugely depends on advertising. The franchisor gives an outline or structure specific to advertising. The franchisor can contribute to the advertising fund.

  • Termination: At the expiry of the agreement, the franchisees will be terminated automatically unless it will be renewed. There may be other conditions like a breach of conduct or bankruptcy for which they may end the agreement mutually.

  • Applicable law and dispute resolution: In case of dispute, they have to follow the law of the country. For example, the European Franchisees have to follow the dispute resolution laws of Europe, especially for the international sector.

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