Franchise agreements are long and complex legally binding documents – and no two are equal. For this reason, it is important that you consult a franchise lawyer to verify the contract with you. It is in your best interest to know exactly what you are signing, including the rights and duties you have. The Franchised Zone section is one of the many elements that require expertise and advice before agreeing to invest in a franchise. A territorial clause will define where rights will be granted in the world. This could go hand in hand with the above-mentioned exclusivity; For example, there could be an exclusive license in the United States, but in the rest of the world it could not be made exclusively. This would allow the developer to enter into contracts with other publishers outside the United States. Care must be taken to ensure that, when signing multiple distribution or publishing contracts, rights do not overlap in a way that would make either distributor the infringer. As a general rule, the agreement contains a guarantee clause stipulating that the rights granted are actually available for grant. Such clauses will be dealt with next week in the second section of this series. I support our clients in the design and negotiation of commercial contracts.
In addition, I focus more on the ICT sector. A low-performing franchise. If a franchise does not meet the minimum performance criteria, the franchisee may have the right to sell another franchise in a previously exclusive zone. The franchisor wants to make the most of a profitable area and could take action if the existing franchisee is unable to achieve the expected level of performance. In such cases, the underperforming franchisee will receive feedback, training and support to improve profitability, but if these do not improve performance, the exclusive zone could be revoked. As a franchisee, you need to do everything in your power to understand exactly what you`re signing up for. This means talking with existing franchisees to learn more about the possibility. This should give you a real insight into how the business works and identify any false claims the franchisor might have made to exaggerate the company`s success. Franchisees can tell you if they feel the territorial structure is fair and reasonable. You can also determine if there is a process for franchisees who wish to raise concerns about the areas during their franchise trip.
Defining franchised areas can be quite complicated, so you should consult a franchise professional to prepare for the discussions you`re going to have with the franchisee. If you are negotiating the size of your territory, you should try to be reasonable….