Documenting the franchise relationship
by
Norton Rose
As every franchise system is different, each franchise agreement will be different.
Although there are standard issues to be dealt with, franchise agreements are not standard form documents. They must be tailored for the specific and distinct requirements of each franchise system. A lawyer experienced in franchising should be engaged to draft the franchise agreement.
In addition to the franchise agreement the franchisor may need to prepare the following documents:
- preliminary marketing information to be supplied to prospective franchisees;
- application documents to be submitted to the franchisor at various stages by an interested party. These may include an application form and a confidentiality agreement;
- a disclosure document and other documentation required to be provided under the Franchising Code of Conduct;
- personal guarantees, covenants and ancillary documents to the franchise agreement; and
- premises documents such as a lease, sub-lease or licence.
There may also be documentation relating to any credit arrangements or finance, and documentation relevant to any vehicles, equipment, computer systems or other items which form part of the franchise arrangement.
See the buying a franchise and running a franchise pages for further assistance.
This article was created by Deacons and appears courtesy of Austrade . 27.06.2007
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