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The franchising contract, cement of the relation.

The contract is the network’s facade and must clear for someone who is not familiar with the juridical world and it must be strong. It often has forty articles.

First, the brand image must be logical and the contract between the franchisor and the franchisee is one of the elements of this logic. 3 elements are necessary: the concept definition, the candidates profile and the franchisors’ objectives.

The contract can refer to the deontology code brought by the franchise federation or association of your country, it reminds that the franchisee must not give the know-how to a third part; a non-competition clause can be envisaged.

The franchisor’s and franchisee’s interests are linked. The accuracy of the contract concerning names and address of the people, their status, the transmitted know-how, and the mutual obligations in the franchise…Everything must appear clearly in the contract. However, it must not envisage duties that are impossible to respect: for example ten annual visits from the network’s head…otherwise, it could go against him. Also, the franchisor cannot interfere in the franchisee’s management who keeps independent. Each contract clause must have its justification.

Bruno Place

www.ac-franchise.com

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