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Things to Be Mindful of in a Franchise Agreement


Owning a franchise could be considered a safe option in business. It is like starting your own business, under the umbrella of a business whose role is to offer you a ready platform of operation. There is no easier way to setup a shop and start selling than through Canadian franchise. But as straightforward as it seems, there are some things that you need to work on in a franchise, failing which you can end up in the wrong business, worse still lose the entire investment. It is the franchise agreement that makes and breaks things in franchise business.


To avoid any untoward circumstance, you need to read the agreement cover and make sure that you are crystal clear about every term typed out in the page. Just to make sure that you understand it, the franchise agreement is a formal contract shared between a franchisor and a franchisee where in all clauses of the contract are laid out. It is signed on a day following the discovery day. The contract is one’s legal right to own the franchise and open an establishment following the guidelines agreed to in the document. A franchise directory Canada does not talk about agreements. To be fully informed about terms of a franchise contract, you may speak to an expert or talk to a lawyer.

The contract contains in writing the support a franchisor agrees to provide you as a franchisee. Some companies restrict themselves to training and advertisement, while others extend legal support too. When reading through the contract, focus specially on rules that apply to suppliers, transfer of ownership. Royalty fees, territory protection, staff hiring, staff training and price. If you notice any discrepancy between what’s been verbally discussed between you and your franchisor and what’s mentioned in the contract, bring it up immediately. Pick from the top franchise opportunities to avert such incongruence.


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