The franchise licensing agreement is a legal document that puts the marriage of the franchise partners in motion but that doesn’t mean it has to be harsh.

It is the nature of the beast that the franchise licensing agreement must live up to expectations as a major watershed document in the franchise development process. By the time that hopeful franchise owner sits down at the table to sign that franchise licensing agreement, a great deal of water has gone under the bridge.  There will be meetings, phone calls, background checks by the franchise company and by the franchise applicant and exchange of franchise disclosure documents big enough to choke a horse.

As the franchising company, the responsibility for authoring the franchise licensing agreement falls to you. Smart companies that build a franchise empire do not farm out this chore. Put some thought and care into how that franchise licensing agreement looks, smells and feels because it is important that is works on several levels.

The obvious level that the franchise agreement must work is as a legally binding document that cements the relationship between you and that new franchise owner.  By legally binding, we are not kidding because this document will have to stand up and do its stuff if push comes to shove in a legal way. So you do have to put some teeth into the franchise licensing agreement so that it protects you.  But keep in mind that it takes two to tango when you are building a franchise relationship and work with representatives from the other end of the table so both you and the franchise owner feel that the franchise licensing agreement is fair to everyone making the deal.

Let the franchise licensing agreement kick off a productive long term business relationship.

Keep in mind also that when you get up from signing that franchise licensing agreement with a new franchise owner, you will have started a relationship that should and could result in great wealth for everyone. You want that franchise owner to charge out of that room with moxie and enthusiasm to conquer his or her market in the name of your company.

There is no reason to make the language of the franchise licensing agreement hostile, stale or unpleasant.  Keep in mind that you are in the position of selling that franchise to the franchise owner so that makes him or her a customer.  Never miss a chance to build that customer relationship.  By making the franchise licensing agreement an upbeat and encouraging document, you are even using a boring old legal document like the franchise licensing agreement part of your bold marketing plan that will result in an explosive growth in your franchising empire. That is smart use of the franchise licensing agreement to be sure.

 

 

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.

Look at the hotel franchise agreement that you prepare for your franchise owners as step one on a long relationship of profits and growth.

The hotel franchise agreement that you prepare for your franchise owners is one of several important franchise documents that will make your plans for franchise success take off.  When you are preparing to franchise your company, the composition of the various franchise documents can get tricky.  By the time that hopeful franchise owner comes to the table to sign the hotel franchise agreement with stars in his eyes, he should be well broken in by the process that you have in place leading up to that eventful day.

You know how to make a hotel take off and become a profit generating superstar and that is why you want to use the hotel franchise agreement methodology to turn a big success into a mammoth marketing dominating powerhouse.  Make sure that you bury in that hotel franchise agreement that the franchise owner will jump through the hoops that it takes to make a hotel go from a building by the side of the road to a place that your customers call home away from home.

Of course, by the time that eager new franchise owner shows up with pen in hand to sign your hotel franchise agreement, they already know your insider tricks of the trade.  Some weeks before signing day arrives, the franchise applicant had the big challenge of wading through that very involved and detailed franchise disclosure document where you spill your guts about who, what, when and why your hotel is a success where others have gone belly up.

This A to Z document makes that franchise owner a member of the insider family.  So you want to seal the deal with a binding hotel franchise agreement that puts that hard working franchise owner to work building another hugely profitable hotel outlet for your company.

Turning that new franchise owner into a big game hunter for bringing in the huge crowds of customers.

When it comes to the hotel business, one thing matters and that is putting bodies in those cushy beds and filling those empty rooms each night.  When you add a franchise owner at the moment that hotel franchise agreement is put in place, you want to know that your new franchise partner can put bodies in those beds and in your restaurants and using all the other money generating services your hotel offers.

You will do much of that fact checking before the hotel franchise agreement is ever put on the table for signatures. You will run a check on that franchise applicant to make sure they know how to turn a small business into a big success. Before you agree to let that franchise applicant sign your hotel franchise agreement and hang your company name on their hotel, the homework for the right locations and what customer niche that they will target will be set in stone. If all of that preparation looks and smells good, it should be a happy day all around when the hotel franchise agreement is signed and you are ready to cut that franchise owner loose to become a record breaking success for your company.

 

The franchise application form is step one of your exciting new career as a franchise small business owner.

Look at the arrival of that franchise application form as the beginning of your exciting journey that ends with you owning and operating your own franchise small business. Do not let the fact of life that you are going to have to deal with various franchising documents during the short window of time before you sign that all important franchise agreement put a damper on your enthusiasm. Instead greet that franchise application form with open arms and sink your teeth into it because once that document is complete and filed with the franchise company, you are on your way to a life of excitement, small business ownership and plenty of success.

It is good to keep in mind that the franchise application form is not an application for employment.  Don’t go run in the closet when this important franchise document shows up.  It is understandable that you want to launch out and make your fortune as a small business owner.  The thing that will make you a big hit with the franchising company is your entrepreneurial side that is not interested in just drawing a paycheck. At the same time, even the most intrepid small business owners have to sign a few deals and play ball with business partners.  Completing and submitting that franchise application form is playing ball in the big leagues to be sure.

The franchise application form tells the franchising company that you are legit.

A big reason why there is plenty of time built into the time between when you finish the franchise application form and when you set up shop as a franchise owner is that both you and the franchising company have to check each other out.  Your part of making sure the franchising company is too legit to quit is by reviewing the franchise disclosure documents  that will show up not long after the franchise application form is done.  Be prepared because the FDD is a monster to go through so give it some serious attention.

At the same time the franchise company has to make sure that you are not a flake and that you can deliver when they hand over a profit generating franchise to you. They are not going to give you a franchise on your good looks so they need the information on the franchise application form to check you out. Spill your guts on the franchise application form and don’t make them go on a wild goose chase to verify that you are a serious franchise applicant and that you can turn that new franchise into a money generating nuclear bomb.

Above all, when you are filling out that franchise application form, be honest.  The franchise relationship is grown up business so this is no place to get frisky. Give them all of the information they need and wear your heart on your sleeve in the parts of the franchise application form that probe your motivations for wanting to own a franchise. These sections of the franchise application form are there so they can look into your mind and see that you are a go getter, a business man or woman to be taken seriously and that you will work like a dervish to make that new franchise a huge success.

 

By looking at an example franchise agreement draft that have been used before, you can get a feel for what will be involved in buying that franchise that you want to be your small business.

There are plenty of examples of a franchise agreement draft that any starry eyed franchise owner like you can find to study as part of your homework phase of your quest. Getting your arms around all the franchise information you can handle well in advance can take the fear and trembling out of what you will have to do to have your own franchise of a very successful business someday.

Part of that preparation is taking a good hard look at the different types of franchise documents that will become your bibles in preparation for becoming a franchise owner.  The franchise agreement drafts that you look are perfect for giving you a good feel for the document you will sign when you sit down that that franchise company and take ownership over one of their hot properties.

It is easy to get intimidated by a very large company that may let you give them several wheelbarrows full of money to own one of their franchisees. You can take the steam out of that intimidation factor by studying more than one franchise agreement draft along with other franchise documents so you do not feel like you are reading a foreign language when the real deal documents show up at your door.  Take some time to read examples of franchise disclosure documents  and any other sample franchise documents you can lay your hands on.  All of this preparation will pay off big time when you get into the franchise negotiation game in a big way.

Basic training for buying a franchise.

In lots of areas of life where you take on a big challenge, the preparation time is the most important phase.  In sports, training camp is vital for a team to win. For the military, boot camp is what makes soldiers who can win battles. So look on the time you spend with that franchise disclosure draft and reading up on what it takes to win that big franchise deal as your own personal basic training for buying a franchise.

Lots of people set out to buy a franchise and do not make it. When you start having discussions with the big shots from the franchising company, knowing their lingo and being one jump ahead of them every step of the way is the path to a big win.  By doing your homework looking at a franchise agreement draft and doing other preparation study, you won’t walk into those meetings looking and smelling like a rube.  You will behave like someone who knows their stuff and is ready to take on that franchise purchase and make a big success of it.  That is a sure path to winning that franchise purchase and being on you way to a long and very prosperous career running your own franchise small business.

 

Take some time with a franchise agreement PDF so that you are up to speed on the steps leading up to buying your own franchise.

A franchise agreement PDF is a way for you to look ahead in time to that moment when you say “I do” to the marriage between you and the company you are buying a franchise from. Buying a franchise is not the same as buying a can of tuna fish from your local grocery store.  It is a process that can take weeks if not months of reviewing documents, negotiating the terms of the franchise agreement,  and getting preliminary preparations on your end done so that when you do sign that document, you are ready to hit the ground running to get your exciting new franchise small business off the launch pad.

Anytime you start out on a great adventure, having a roadmap of what to expect is a great start. By getting your hands on a franchise agreement PDF, that can serve as the road map to the future that you need. It is not to difficult to find examples of a franchise agreement PDF online that will show you what kinds of things you will be agreeing to when you make that deal to buy a new franchise to launch your empire.  They are accessible online to download in franchise agreement PDF format and they are an excellent template to give you the inside track on what you are getting yourself into.

Along with the preparations you do before that final day that you buy that franchise, you will get a franchise agreement PDF from the franchising company about a week before the actual legal document shows up for you to sign.  You should be aware that any franchise agreement PDF that you get as a template for what these documents look like will be general in nature.  The franchise agreement PDF and the final document you get from the franchising company will be customized to the specific line of business you and the franchising company are in as well as with specific tweaks based on how that franchising company works and any changes that you may have worked out with your new business partner.

Studying a franchise agreement PDF far in advance of buying a franchise is preparation, not cheating.

By the time that first draft of the actual franchise agreement PDF is sent to you, you should be well educated in what each franchising document is telling you so there are no surprises when you pay your franchise fees and it is time to open the doors of your new franchise outlet. That is why looking at templates of the various franchise documents should be considered to be part of “franchising 101” for you.

This kind of preparation by examining templates of the major franchising documents is not cheating.  If anything, the franchising company is looking for people who are industrious enough to hunt up a franchise agreement PDF so you are well prepared for the big task of building a wildly successful franchise for yourself and for them.

Don’t be afraid to download templates of the other important franchise documents to learn all you can from them. The franchise disclosure document  is a major publication that will come to you big enough to choke a horse so learning how to slice and dice it ahead of time will cut down on the fear and trembling you will go through when it shows up on your doorstep. Just chock up to preparation time this step of accessing a franchise agreement PDF. It is all just living up to that age old motto of the Boy Scouts of “be prepared” when it comes to getting ready for this huge step in your career of buying a franchise small business.

 

: You can use the uniform franchise offering circular template to find out which potential franchise buyers are serious about the relationship.

The uniform franchise offering circular template is a document that will take raw recruit franchise buyers and turn them into franchising experts. Another term for the uniform franchise offering circular template is the franchise disclosure document.  That is an on target name for it because disclosure is the name of the game at this early stage of the franchising process.

It is easy to be alarmed at the sheer bulk that the uniform franchise offering circular template will reach. It is wise not to try to cut corners on this crucial step in turning your franchise relationship with that buyer into a reality.  Until the uniform franchise offering circular template is delivered, the discussions with the potential franchise buyer are little more than a flirtation.  The moment you deliver the uniform franchise offering circular template, things start to get serious.

There is no reason to make the uniform franchise offering circular template a walk in the park for your future franchise buyers to handle.

The franchise relationship is not for sissies.  When you and that new franchise owner sit down to sign that franchise agreement, some serious money and commitment of time, energy and resources go on the line. If you are willing to let your hard earned good name of your company go flying out the door to franchise owners, you want to be sure they have the stuff to make that franchise work.

The least that new franchise owner can do is to wade through that long and involved uniform franchise offering circular template. It is not busy work because that one document represents the A-Z guide to just about everything the franchise owner must know before making a commitment to take on the big job of building and running one of your franchises.  All totaled, there are 23 different categories of disclosure information that spell out in detail to the franchise owner anything they could care to know and then some about your company, the history of your success before and after launching and what they will be required to do every step of the way.

If anything, it is in the best interest of your grand plans for a franchising empire to pack as much information into the uniform franchise offering circular template as you can.  Naturally you should write this monster document in understandable language that anyone can understand. In fact, you are required by franchise law to make it a document that you don’t have to have a PHD in law to grasp.

But that doesn’t mean you dumb it down.  So what if it is a challenge to get through the uniform franchise offering circular template for your company? It won’t be the last challenge your franchise owners will face. This is a good way to sift out the ones who can’t cut the mustard before legally binding documents get sealed in stone.

 

 

 

Franchise licensing is essential to winning a franchise and it could be just the right structure you need to start your own business.

Franchise licensing is the legal tool to make sure that the franchising process is handled correctly. One of the big motivations for franchising a small business is that entrepreneurial streak that many of us have to own and run your own business. There is nothing wrong with that inner drive to want to get away from being a servant to “the man” and run the show for yourself.  Franchise licensing is what spells out the rules of the road for using the franchising route to achieve your dream of running your own money making operation.

The one drawback to starting your own small business from the ground up is a drawback that those franchise licensing documents can help to take care of.  The drawback is that there is almost too much freedom and lack of structure when you start your own small business. It helps to have some structure so you know what to do next and how to live up to expectations and you have a road map to what to do next.

The value of going with a franchising solution even with the overhead of franchise licensing is the structure the program that you get from the franchising company. That structure is highly regulated and the franchising company will put that road map in front of you that you pretty much are forced to follow because the franchise licensing arrangement are not just a bunch of pretty ideas. They represent franchise law that neither you nor the franchising company can get frisky with that.

Holding the franchise company to live up to their end of the franchise licensing agreements.

You are a smart one to jump back and think about the good as well as the scary part that franchise licensing will bring to your world when you sign those franchise agreements.  Anyone who launches out without thinking hard and long about franchise licensing and what it means should find the door locked when it is time to sign those agreements and enter into that binding relationship with a franchising company.

At the same time, keep in mind that those franchise licensing rules and regulations go two ways. Sure they hold your nose to the grindstone to create a knock-your-socks-off great franchise for the franchising company.  But those franchise licensing details also hold the franchising company to a standard so they have to pony up as part of the relationship too.

You can dig out the details of exactly who does what, when and how in the franchising relationship in the franchise disclosure documents that you will get early in the cycle of developing your love affair with the franchising company.  Be sure you become an insatiable reader and that you understand everything in those documents as well as in all other literature you get from the franchising company.

By understanding how you have to salute the flag according to franchising agreements and how the franchising company must bring some serious stuff to the table too, you will be able to work as a full partner in the building of your new business.  That means serious success and serious money for you and the company whose sign is on the door and in that way, everybody wins.

The franchise documents phase of forming a new franchise relationship can be tricky so do all you can to make your franchise documents understandable.

When you prepare the various franchise documents that must be used to bring a new franchise owner onto your team, step back for a minute. It is easy to get caught up in the challenge of preparing those many franchise documents when you are franchising a business. Creating workable franchise agreements, disclosure statements and the other types of documents take time, thought and some amount of consultation from your team of overpaid franchise lawyers.

It is easy to get in a hurry to wrap up the preparation phase of putting together your franchise documents because once you have them in the can, you can move on to the more interesting and fun steps of actually selling franchises and getting your empire growing.  There is a good reason, however, to take that step back before wrapping up the preparation of franchise documents.  These important legal documents live a double life.

The secret life of franchise documents is that they can make or break the delicate relationship that you are nurturing with your prospective franchise owners. Keep in mind that until that franchise agreement is signed, delivered and set in stone, the act of selling that franchise to that potential franchise owner is still a priority.

If you think you were intimated by the massive franchise documents you prepared and all of the legalize that was in them, think of how easily those complicated contracts and disclosure statements can scare the life out of potential franchise investor. So before you call your franchise documents done, go back and think of how they come across to the reader.  That review may lead to some revisions to put a human touch on those scary franchise documents.

Put some of the love into your franchise documents.

There are two important ways you can put a human face on those scary franchise documents.   Part of how you can make them less prone to send the franchise investors you are romancing running to the hills is simply to organize them well.  A good example is the franchise disclosure document.  There are as many as 23 different types of disclosure that can fill up that document and turn it into quite a monster for a franchise investor to read.

By organizing a franchise document like that with a simple 3 page overview and the dirty details laid out in appendices, you take the fear and loathing out of a tough franchise document.  If the franchise document is delivered both digitally and as a paper document, links to the longer dialogs can make it easy for a future franchise owner to navigate that big document and be able to come back to it and pick up where they left off.

The second but just as important tip for putting a human face on your franchise document is to write them like people write.  It is true that the franchise documents have to bow down to franchise law but that doesn’t mean they have to read like a lawyers brief. Write with some personality and remember that you are still building that relationship with that franchise owner.

It is entirely possible for franchise documents to scare off a franchise investor and that is what you want to avoid.  While you cannot make your franchise documents marketing brochures, there is a lot you can do to make them much less scary and to put a human face on those franchise documents as well.

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.

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