The Ins-and-Outs of Franchise Agreements
In the new Entrepreneur article, “The 19 Covenants of a Standard Franchise Agreement,” author Rick Grossman shares some details from his bestselling book, “The Franchise Bible.” If you are interested in buying a franchise, this article is for you. What covenants are typically included in a franchise agreement? Here are some of them:
- The Grant of Franchise Section: this specifies the trademarks, symbols, and systems the franchisee is buying the right to use on a limited basis.
- Fees and Required Purchases Section: this specifies all moneys that must be paid by the franchisee to the franchisor, including the initial franchise fee, any advertising costs, fees to be paid before and during the term of the franchise.
- Protection of Proprietary Information: this specifies the terms under which the franchisee is allowed to use proprietary information, such as special recipes, and to what extent.
To read more about franchise covenants, see Grossman’s full article from Entrepreneur – https://www.entrepreneur.com/article/286680.