Need to Buy a Franchise
A franchise is a formal agreement between two parties, a franchisee and a franchiser for the purpose of selling the products of a particular company. It is a contract signed when you buy a franchise which sets out the period in which the contract will run. This agreement shows the obligation that the franchiser and the franchisee have towards each other.
This is a legal agreement and has a set of ethics that should be followed. These ethics are normally applicable to many states in the European Union. When you decide to buy a franchise, it is important to note that, it must achieve the basic three objectives. The agreement is meant to bind the franchiser and the franchisee on a contract basis.
It seeks to protect both parties involved and it is also meant to clearly state the rules that the parties are expected to achieve. It determines the rights and obligations of the parties involved in cases where there are no specific legislation or regulations of franchising. When one decides to buy a franchise, it is important that they make sure that some things are in the agreement.
The franchisee will have to make sure that the franchiser promises to train the franchisee and its staff. The franchiser should promise to supply goods or services, be responsible for promoting the brand and will be expected to assist where appropriate. The seller will also be required to assist the buyer to locate and acquire premises.
The franchiser will wish to monitor the franchise once in a while, to protect the franchise from competition and also to impose obligations and restrictions on the franchisee with regard to the use by the franchisee of its business system. For a smooth running business it is wise for the two to keep up with set rules and regulations.
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This is a legal agreement and has a set of ethics that should be followed. These ethics are normally applicable to many states in the European Union. When you decide to buy a franchise, it is important to note that, it must achieve the basic three objectives. The agreement is meant to bind the franchiser and the franchisee on a contract basis.
It seeks to protect both parties involved and it is also meant to clearly state the rules that the parties are expected to achieve. It determines the rights and obligations of the parties involved in cases where there are no specific legislation or regulations of franchising. When one decides to buy a franchise, it is important that they make sure that some things are in the agreement.
The franchisee will have to make sure that the franchiser promises to train the franchisee and its staff. The franchiser should promise to supply goods or services, be responsible for promoting the brand and will be expected to assist where appropriate. The seller will also be required to assist the buyer to locate and acquire premises.
The franchiser will wish to monitor the franchise once in a while, to protect the franchise from competition and also to impose obligations and restrictions on the franchisee with regard to the use by the franchisee of its business system. For a smooth running business it is wise for the two to keep up with set rules and regulations.
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