The agreement sets out the franchisor`s obligation to provide training and support services. This obligation exists both before the opening and throughout the duration of the franchise agreement. A typical franchise agreement is 25 to 30 pages long. After joining all the exhibitions and after-mouths, the final chord can be two or three times longer. A franchise agreement is a membership agreement, which means that it is created by a party with greater bargaining power using standard form provisions. However, it is sometimes possible for franchisees to negotiate smaller points such as a payout plan for the initial franchise fee. Trademarks are an essential intellectual property right in a business or business that can be licensed through a franchise agreement. Intellectual property rights (IPRs) are the most important commercial actions of a franchise. They give franchisors the opportunity to expand their business while making a profit by collecting fees or royalty payments from their franchisees. The nature of a franchise exposes the franchisor to a high risk of possible misappropriation of its trade secrets, misuse of its brand reputation, goodwill and other intellectual property rights. There are very important provisions that must be included in a franchise agreement to ensure that the franchisor`s intellectual property is adequately protected. In this context, a potential franchisor or franchisee is advised to use the services of an intellectual property lawyer before venturing into a franchise agreement to ensure that all the necessary foundations are covered. Whether you are able to negotiate terms, it is always important that you hire a franchise lawyer to review the franchise agreement and the FDD.
When developing an appropriate set of franchise agreements, each of the elements of the franchise must be evaluated. Before lawyers start drafting contracts, it is imperative that the franchisor first develops its business plan and decides on all these important issues. .