Reviewing the franchise agreement forms that you sign with a franchise owner makes sense because you might want to cut them a better deal or cut them out.

The franchise agreement forms that you send out to a prospective franchise owner are not “till death do us part.”  While you are selling that franchise to a small business owner and it is he or she who will run their operation, the rights to that franchise are still with the franchising company. That is why the language that you put into the franchise agreement forms should include some escape clauses so that if the franchise owner makes a mess of things, you have a way out.

Franchising your company  is a big step and there are steps you can take to make sure the partners you bring onto your roster of players as franchise owners are up to snuff.  The various franchise agreement forms shift some of the burden of proof that they can carry their weight in the franchise relationship to those starry eyed new franchise owners.  By making it a serious requirement that the franchise owner provide proof that when it comes to running a small business, they know their stuff, you avoid handing over that valuable franchise to someone who is going to run it into the ground.

There are variables in the franchise agreement forms that you can tweak based on how well this new franchise applicant gives you the warm fuzzies that they will do well.  If you have secret doubts that a particular franchise applicant might be a dud, you can hike up the initial franchise fees within the franchise agreement forms.  That way you build in some insurance in case you have to go in and clean up some messes.

You can also adjust the term of the franchise agreement forms so that an iffy franchise comes up for renewal faster than might be standard. If you set that renewal to come up in a year and make that the law of the land in the franchise agreement forms, then you have a legal way to cut and run if they do badly.  But if they turn out to be all star business managers and their franchise is knocking down serious money, you can make adjustments when you renew the franchise agreement forms.

Making some changes when franchise agreement forms are renewed gives you a window to turn a good franchise owner into a great one.

All franchise agreement forms spell out so anyone can get it that the franchise will expire at some moment in the future.  While the idea of renewing the franchise agreement seems on the surface to be at time when either franchisor or franchisee can run for the hills if they need to, it is also a chance to kick a very successful franchise owner into high gear.

If you have a franchise owner who is kicking backside and taking names when it come to profits, you can sweeten the pot in the franchise agreement forms to make his or her next tour of duty even more of a profit machine. You may wish to sweeten the pot with a nice looking franchise royalty arrangement that lets the franchise owner keep more gold in his or her bank account if they break a few sales barriers.  Or you can offer that knock-your-socks-off franchise owner a way to build an empire through a master franchise agreement.

These changes are all perfectly legal within franchise law and they are what capitalism is all about. When you can capitalize on your all stars and cycle out the dead weight leveraging those franchise agreement forms term limits, that is just smart business that will result in a dynamite team of franchise owner that you will profit from big time year after year after year.

Franchise agreement forms must be signed when you begin your franchise relationship or renew it and each time it pays to review what is in those important documents.

Franchise agreement forms can be intimidating. When you set out to realize your dream of franchising a business , that vision is not of filling out a bunch of complicated legal forms. Whether you are new to the franchising game or coming back for renewal, you may greet the arrival of those franchise agreement forms with a massive groan.  But let that groan out and get it out of your system and then get a cup of coffee and read those franchise documents carefully. You will wind up in a stronger relationship with your franchisee if you do that.

There is always the impulse to get in a big hurry in your haste to want to get that franchise open fast.  Taking your time to work through your franchise agreement forms should not be seen as a nuisance.  One way to find the motivation to read every paragraph and line of those franchise agreement forms is to look for the areas of responsibility.  First of all, discover in what ways you must salute the flag of the franchisee company. Franchising a company is about much more than just hanging their sign outside the building and wearing the corporate logo on your uniform shirt.

But of greater interest to you is where the franchisee will earn their money you pay to buy the franchise and to keep paying those franchise royalties each month. There are ton of benefits to the franchisor that you get by getting into bed, so to speak, with a successful business as a franchisor. Those benefits will include training, products and advertising as well as the deep wells of wisdom the franchisee brings to the table to help you become a big success.

All of that is buried in the franchise agreement forms. Dig deep when you read through the franchise agreement forms and read them several times.  When you can virtually quote those documents chapter and verse, you will open the doors of your new franchise business with much greater confidence.

Renewal franchise agreement forms need love too.

Franchise agreement forms are not lifelong contracts.  Every so often, a time comes where both parties have a chance to step back and consider if this experiment in getting rich is working.  When those renewal franchise agreement forms show up in the mail, it is not a reason to panic.

 

The arrival of renewal franchise agreement forms is a chance to look at the time you have owned that business to make a decision about whether it is all living up to the grand dreams you had before you sign another set of franchising agreements to take on another tour of duty. It is a chance for you to give an honest assessment of whether the franchisee is giving you the support and service you need to be a success.

It is also a chance to take a good honest look at whether this is the franchise for you. If you decide your money making efforts would be better used elsewhere, you can always let the franchise expire and sign up with a different franchisee and put your years of hard fought experience to good use.