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Q What is a franchise agreement?
Unfortunately, a franchise agreement is an extremely complicated and detailed commercial contract. Generally, they are about 40 pages long, although some are as long as 100 pages.All a franchise agreement does is expand on the standard definition of franchising, which is:
- The franchisor allows a franchisee to use its brand.
- The franchisor will provide continuing training and guidance.
- The franchisee must comply with the franchisor’s requirements.
- The franchisee must make payments to the franchisor. Inevitably because lawyers are involved, agreements expand on these very simple principles at great length. Having said this, franchise agreements are complex and it is essential you obtain legal advice on the agreement from an experienced franchise lawyer, who will know what provisions are unusual, unfair or unworkable. The British Franchise Association has a list of affiliated lawyers who know about franchising. It is very unlikely that a lawyer who is not affiliated to the bfa will have sufficient experience of franchising to be able to advise you properly.
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