Is Using a Franchise Agreement Template a Good Idea?

By Joe-Willson on 2010-06-19 14:58:32

What is a franchise agreement?

The franchise agreement is one of the fundamental franchise documents. This is the legal contract between your franchisees and you. As any other legally binding document, your franchise agreement must comply with certain laws and regulations. In addition it must fully meet the terms of all federal and state franchise laws.

A typical franchise agreement covers all aspects of your offer - what initial fee is required by the franchisee, are there any ongoing fees and how much are they, what royalties the franchisee must pay, what is the term of the contract, what are the renewal conditions, details about coverage and territory protection, are there any restrictions for your franchisee, what training and support you are going to provide, what are the terms for ending the agreement.

Obviously preparing a franchise agreement is not an easy task. You need to have knowledge, experience and time if you want to get it done by yourself. Since not all franchise owners have specialized knowledge and experience, and since their time is always required somewhere else, many consider using franchise agreement templates.

Yes/No to using a franchise agreement template

If you would ask a franchise consultant should you use a franchise agreement template for preparing your own agreement, they will probably advise you not to. One reason for this answer is that some templates are pure scam and they totally do not comply with the legal requirements. Another subtle reason is that if you use such template, you are less likely to need the help of a franchise consultant.

Using a franchise agreement template is a great idea provided that you find a good quality, certified template. One of the greatest benefits of using a franchise agreement template is that it saves hundreds of hours of hard work. Every start up franchisor has quite a lot of issues to take care of and this is why easing their work on documentation is a great relief. Moreover a franchise agreement template can save a lot of money on consultancy and attorney fees.

Such pre-written documents have everything in place and all you will need to do will be to customize it to suit the specifics of your business. A certified franchise agreement template would be prepared by franchise experts and reviewed by franchise attorneys so that you have the complete piece of mind that it complies with all federal and state franchise regulations and well as common business laws.

If you are interested in finding a good franchise agreement template, you can take a look at one of the leading providers in this area. A free sample franchise agreement can be accessed here.

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