Franchise contract is a legal agreement between franchisor and franchisee, and it is an agreement on the rights and obligations of both parties. Different from the general contract, the franchisor will stipulate some mandatory terms in the contract, and the franchisor has no room for bargaining on these terms. However, franchisees should not relax the review of franchise contracts because many franchisees use contracts to set traps, so franchisees should be careful.

I. Preface to the Contract

In the preface of the contract, the words that may cause misunderstanding or ambiguity in the contract should be explained and explained in the form of definitions to avoid unnecessary disputes in the future. For example, the contract lists the concepts of joining fee, deposit and commission.

Second, about concessions.

Third, about the types of enterprises.

Fourth, about the payment of fees.

Verb (abbreviation of verb) about business scope

1. Usually, the contract stipulates that the franchise store only operates at its business address, and it is not allowed to open stores in other places to operate the same business.

2. The head office should promise that it is not allowed to open franchise stores within a certain range, such as within 300 meters of Fiona Fang franchise stores.

Franchisees should ask the head office to promise to open a new store within a certain range, so franchisees should have priority.

VI. Initial and continuing liability

1. Initial responsibilities of the headquarters

2. The long-term responsibility of the head office

3. The initial responsibility of the franchise store

4. The long-term responsibility of the franchisee

Seven, about the time limit

1. Generally, a certain time limit is set, such as one year or two years. The franchisee shall require that the right to choose to renew the contract be clearly stipulated in the terms.

2. Consider whether to add a clause stating that franchisees can terminate the contract three months in advance, so as to quit early in case of unsatisfactory operation and reduce losses.

3. However, after giving notice, the franchisee shall refuse to allow the head office to terminate the contract at any time, otherwise the invested funds will be lost.

Eight. Privacy Policy

1. The franchisee shall keep the business secrets of the franchisor and protect the specific information that is not a business secret.

2. After the termination or expiration of the contract, the franchisee shall not continue to retain the brand characteristics of the franchisor, nor shall it continue to use the management system owned by the franchisor.

3. After the termination or expiration of the contract, the communication number, contact address, website, domain name, etc. Articles used by the franchisee for business purposes during the contractual relationship shall be owned by the franchisee.

Franchise contracts are different. No matter the franchisor or franchisee, only according to the relevant laws and regulations, combined with their own actual situation, seriously consider the matters that should be stipulated in the franchise contract, can they better safeguard their legitimate rights and interests.