The franchise agreement document is a crucial step in buying a franchise so know it inside out when you prepare to sign up to own your own franchise.

It is crucial that you understand the franchise agreement document well in advance of that big day when you sign the formal document to make your franchise purchase legal. There is an old saying that knowledge is power and that old saying applies in spades when it comes to getting all of the franchise information you can lay your hands up before you seal the deal.

Sealing the deal happens when you sign that franchise agreement document because once both franchisor and franchisee put their autographs on it, that contract becomes as legally binding than a marriage contract. In fact, most marriage contracts are easier to get out of than a franchise agreement document and that is something to sit on the back porch and think about before you move forward.

The good news is that the way the franchising process is set up, the franchising company is expected and required to make sure you are up to your nose in explanations and chances to review all of the franchise paperwork including the franchise agreement document. Part of that preparation will be the delivery of a fully customized franchise agreement sample that will be down to the last detail a replica of the franchise agreement document you will sign a week or so later. This sample is required to be delivered to you in plenty of time for you to read it over a few dozen times, have your high priced lawyers check it out and ask questions and dicker about it before you have to put your name on the final draft and start owning that franchise you want.

Resources for learning about the franchise agreement document are abundant.

You don’t have to wait for the sample franchise agreement document to come flying into your mailbox to start digging deep into the insider secrets about the company who owns your franchises and what life will be like when you buy that franchise and start doing business as a small business owner.  One big document that delivers more detail than you may have thought possible is the franchise disclosure document.  Again, the federal overlords in the FCC require that the franchising company spill their guts in the franchise disclosure document about every dirty detail about the company and what will go on as the franchise development process goes forward.

You can also find plenty of examples of franchise agreement documents online so that you can tap into templates that will tell you what a franchise agreement document will look like and what kinds of things you can expect to agree to when you take out your pen and sign that document. The actual franchise agreement document will be unique and customized to the business that offers it, the market niche that they are in and perhaps even to the specific arrangements between you and the franchising company.  But because you took the time to get to know the franchise agreement document long before you had to face down the legally binding contract and conquer it, you will come through the process with flying colors.

Writing your own franchise agreement document can be intimidating so don’t be afraid to get some help from the experts.

Creating a solid franchise agreement document is one of the big steps any business has to get past to launch a major franchising effort.  It is not hard to get excited about how franchising your company can put your expansion plans into high gear. But it can be intimidating if not downright scary to think about how to draft a workable franchise agreement document because the franchise agreement is a legally binding contract between you and those who invest in your franchises.

You do not want to make a mess of this document. At the same time, do not fall into the trap of stalling out in the process of creating a franchise agreement document.  The drafting of the significant franchising documents should be done early on in your plans to start selling franchises of your business because without them in place, you really cannot move forward.  So make a plan and carry it out with courage. It may not be a difficult as it seems.

Creating a great franchise agreement document is best done as a three step process.

There is an old saying that goes, “Don’t try to eat the whole elephant.” It is a goofy image but the meaning of the saying is to take on a big challenge by breaking it down into little challenges. So we can apply the elephant eating idea to writing a franchise agreement document.  The best approach is to separate the process into three steps.

Step one is to find some reliable franchise agreement templates to study.  These templates will lay out exactly what kind of information you need to cover in the typical franchise agreement document. You can even take this step to the next level and hunt up franchise agreement examples from similar companies as you so you can see what industry specific types of topics that must be covered.  After all, a franchise agreement document for a hardware store chain is going to differ significantly from a franchise agreement document for a fast food chain. So try to narrow in on what you need.

Step two is to “brain storm” your own franchise agreement document.  Now that you schooled yourself in the basics of what goes into a franchise agreement document, tap into that industry expert that lives inside of you.  Create a draft of the franchise agreement document that reflects in words your vision of how your vast network of franchises will work.  The key to what makes this step work is to not worry a bit about if that draft is legal or correct.  Just get your ideas out of your brain and then organize them into a rough format of a franchise agreement document that you learned from step one.

Step three is to get some help.  If you ever wondered if you will need a franchise lawyer or other experts in this peculiar business step, the answer is yes! So spring for a good franchise lawyer and don’t just take the first name in the yellow pages. Your franchise agreement document gurus can fine tune your brain storming from step two into a great franchise agreement document that lives up to every detail of franchise law and that covers your back nicely.

Be sure that franchise lawyer has a resume of success in setting up franchise operations and that he or she knows your industry niche well. By doing that, if you are franchising a fast food chain, you won’t end up with a franchise agreement document for a hardware store.