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Franchise Agreement.

A franchise agreement is a document that is prepared while setting up a franchise and it legally binds the franchisor and franchisee by the agreements’ terms and conditions.

Most established franchisors like McDonalds have an ironclad franchise agreement with little or no room for negotiations. They give you a contract which you should accept if you want to do business with them. The franchise agreement in this case protects the franchisor and all of it is mostly in their favor and so you should make sure that you understand every line before signing.

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The United States Federal Trade Commission has some rules in regard to how the contracts should be handled. They stipulate that a potential franchisee should be given a copy of the franchise agreement for at least five business days before it is can be signed. This allows them time to consult a lawyer who can clearly explain to them the contract details in simple terms. It is important to have it perused and explained by a lawyer even if you have operated a franchise business before. Franchise agreements have no standard format and each franchise will have something different from the others. When searching for a lawyer to assist you to understand a franchise agreement it is advisable to get one who specializes in this type of contractual law. Some of the details that are found on the franchise agreement are explained below.

One of the details that are usually spelt out in a franchise agreement is the territory of operation.  Some franchises give exclusive rights to certain areas where a franchisee will operate from. The franchise agreement must clearly show the details of the award and how the territory is to be defined. If for example it is zip code to zip code, a specific state or square miles.

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A franchise agreement should clearly state the time through which the contract will run. Most franchise agreements are set between five to ten years. If the contract is renewable it should be included together the details of the criteria to be used for renewing the contract.

A clear list of all payments and fees that are due or expected from the franchisee is also included on the franchise agreement. These fees include but may not be limited to the initial fees for the franchise, royalties and marketing contributions. All franchise support and training programs details indicating what the franchise holder (parent company) is going to do for the franchisee are also clearly stipulated on the franchise agreement.

Franchisee’s obligations setting out terms of use of franchisor’s intellectual property are also included in the agreement. This includes rules governing things like opening and closing times, licenses, permits, uniforms, hiring and training of employees and so much more. A franchise agreement must clearly indicate how franchise trademarks and other proprietary properties are to be used by the franchisee. Advertising details and formats that must be followed should be indicated.

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Small business ideas for women.

With today’s stagnated economy, starting a small new business of your own as a woman may seem unattainable. However, with these small business ideas suited for women I can guarantee you success and you will be on your way to financial freedom in no time. These small business ideas are specially suited for women entrepreneurs.

There are many opportunities out there for starting profitable small businesses that can make it even in this tough market. All that you need is to know which ones may work and which ones may not. This is not hard and the business idea can even be a simple hobby that you like. For example if you love and enjoy taking care of pets, you can start a pet sitting service which can be very lucrative for you.  There are many pet owners these days including our president and they travel a lot. You can take advantage of this opportunity since many of these people would love to leave their pets in their own homes each time they travel but they don’t have anyone to look after them. In this case, you only require a few bucks as startup capital which you will use to print some business cards and fliers advertising your services. If things get better you can expand and start a fully fledged pets care company where people can leave their pets each time they travel. In this business creativity is the key! Think about adding additional services like breeding and pet sales; possibilities are endless if you have the passion.