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There are many retail franchise opportunities available, and as a potential franchisee, you need to know all the facts involved in the transaction. The follow statements are common concerns and the corresponding factual answers:
Can a franchise agreement and provisions be negotiated?
It all depends, by saying that it is important to recognize that all franchises are different. This is definitely a situation where you want to hire a good franchise lawyer take the time to review with you, and go over every detail of the agreement you are planning to sign. In many states, a franchisee must sign an exapt copy of the agreement on file with the state. In all the other states, it is no the case at all. Depending on the franchise, some franchisors will not negotiate any terms at all. Meanwhile, other franchises may negotiate anything and everything from price and royalties, to retail space and it's décor. The best suggestions would be to find a good lawyer and talk to your franchisor before you buy the franchise.
Can a franchise agreement be terminated, or not renewed?
Once again, it all depends on the terms and conditions of the specific franchise agreement, and the extent to which the franchisor and franchisee have complied with the agreement. For example, if as a franchisee you begin selling random or unapproved items, your franchisor may decide it necessary to legally terminate your agreement. Also, if the franchisor is not fulfilling all terms of the franchise contract and program as promised, you may have a legal right to terminate the contract. Additionally, in most cases, the franchisor has the right to not renew a franchise contract if they are not happy with the way a franchise has run during the contracted period of time.
The FTC Franchise Rule - Did You Know That It's Required?
On October 21, 1979, the Federal Trade Commission crated a rule and that requires applicable franchisors to supply a full disclosure of all information a prospective franchisee needs in order to make a rational decision about whether or not to invest in the franchise. The disclosure must take place at the first face-to-face meeting where the topic of purchasing a franchise is discussed. If this disclosure does not take place, say something to the franchisor...It is the law!
StretchAlicious understand that you want the facts, and we are pleased to provide them to you. For more information on the StretchAlicious retail franchise, go to our Retail Franchise Business request form.
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