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Obligations. Be sure to spell out the purchaser’s obligations in the agreement. These obligations may include insurance requirements, training fees for employees or marketing contributions. In addition, the document may also state that the business owner is required to purchase all supplies from the parent company exclusively.

Additional considerations. You will also want to have a host of other issues covered, including non-disclosure of your trade secrets, non-compete clauses, termination and renewal provisions, assignability, and indemnification, just to name a few.

Ready to Draft an Agreement?
Of course, this list only scratches at the surface of the terms you’ll need to include in your franchise agreement. Take a look at this franchise agreement questionnaire, which brings up many issues that you’ll want to address. This can help you avoid potential legal problems down the road.

For more information, visit www.findlaw.com.

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