The franchise contracts that legally define the roles of franchisee and franchisor are not above questioning.

When you sit down to sign franchise contracts with a company that is selling the franchise, be sure you have already reviewed every concept in that document so your expectations line up with what they really will do for you.  Because many of the franchise documents such as the franchise disclosure document are very involved, complicated and large, it is easy to think that buying a franchise is all about franchise contracts. It is also easy to get intimated by the fact that the franchising company has a small squadron of lawyers who put together those scary looking franchise contracts.

Don’t let them hustle you with slick marketing, lawyers in expensive suits and glossy looking franchise contracts and promotional literature. A franchise relationship is all about two businesses negotiating a deal.  Negotiation is a two way street and even though you are “the little guy”, you still have the right to say yes or no to franchise contracts right up to when you click that pen and put your autograph on the dotted line.

The company selling you that franchise has just as much on the line as you do.  Those franchise contracts must line up with the promises both made and implied when they sold you the idea of buying a franchise from them. Those words “sold” and “buying” are important.  The franchising company is selling you a product. You are not a new employee of theirs. You are a customer so you can expect every promise that was used to “sell” you that franchise to show up in slick lawyer language in the franchise contract.

Know what you are obligated for when you sign those franchise agreements.

Next to holding the franchising company accountable for what is in the franchise contracts, be sure you know what you are promising when you take out your pen and sign that franchise agreement.  When that franchise contract is signed, you will be in a legally binding relationship that comes with obligations that are spelled out in detail in the various franchise contract documents.

There are financial obligations that come due the moment the franchise contracts are signed. So you should understand down to the last dime, nickel and penny what you are paying and what that buys you.  You may be responsible to subscribe to the franchising company’s advertising and to pay a share of other costs of running your franchise.

So before you stand up from the table after signing those franchise contracts, get a firm understanding of who pays for what, when and how much. If you need to get your own swat team of high priced lawyers and accountants in on the act, do it.  Far better to go overboard before signing those franchise contracts than to regret it after when nothing can be done to change those contracts in your favor.