A sample franchise contract must be sent to the franchise applicant by franchise law but there is much more you can do with it with a little creative thinking.

A copy of a sample franchise contract is required to be sent to the hopeful franchise owner shortly before D-Day when you and that starry eyed future franchise magnate sit down to sign the formal franchise agreement template document. When you get ready to roll out hundreds or more franchise ownerships, it is easy to have a standard sample franchise contract on the shelf that you ship out just to punch the clock and live up to that quirk of the franchise rules.

There are places you can download a sample franchise contract template that is generic.  It is easy to consider simply sending that to the franchise owner and let it go at that.  Of course, if do that, when the franchise owner sits down to sign the actual franchise agreement form that will turn into a long term franchise relationship with you, he or she may find some surprises.  That is a situation that you should avoid at all costs because surprises when you are ready to seal the deal and collect those fat franchising fees can put big storm clouds over the relationship.

It takes more work but make it a part of your franchising program to send to each franchise applicant a sample franchise contract that is exactly what he or she will sign not that many days later. Much depends on how customized you make your sample franchise agreement for each franchise applicant.  The more you bend over backward to make each franchise relationship unique and a perfect fit for that particular market and franchise owner, the more success and big bucks you can expect from that franchise sale.

The sample franchise contract is a great way to stimulate conversation and relationship with your franchise partners.

There is no getting around that you have to send that sample franchise contract because that is spelled out in franchise law in bold letters. So while you are doing your duty as a good franchise operator and sending along that sample franchise contract, why not get some good from this step along the path to adding a new franchise to your chain?

Along with the legal hoops you jump through to take that raw franchise owner recruit from application to closing the deal, there is an educational path to take each new franchise owner through as well. Even if the franchise applicant is an old pro at buying franchises, if this is the first franchise they have bought from you, they need to learn the ropes. The sample franchise contract is a great step to stimulate questions and to get a dialog going with the franchise applicant.

Along with the sample franchise contract, you can send support material that encourages the new franchise owner to ask questions and arrange meetings to clear up any hazy areas about that document or any other quirks of the franchise relationship. A smart franchise buyer will turn into a much better franchise owner who will deliver the goods when it is time to roll up his sleeves and turn that franchise into a huge money making operation. You can help that new member of your team become that productive by using the sample franchise contract step of the process to build that partnership into something that will stand the test of time.