Drafting of a franchise contract in Spanish where all the rights and obligations of the parties are established. Some key points to know about the franchise agreement are:
- The franchisor provides as owner the intellectual property rights that are the object of the contract and transfers them to the franchisee in a non-transferable way so that he can act under its brand and can use its logo, its brand and its operating system for a specified time.
- The franchise agreement must include the way in which the franchisor is going to help and transmit its knowledge to the franchisee. In the same way, the instruments through which this transmission of knowledge will materialize must be collected.
- It should be established in the initial training contract and the terms in which the subsequent assistance will be provided to the franchisee.
- The area or geographic zone where the franchisee can exploit the franchisor's brand and develop or sell its products must be established, in this way the franchisee ensures that it does not have direct competition in the same area.
- In most cases, the franchisee purchases the products only through the franchisor or a dealer authorized by it.
- The quality control and management systems that the franchisor will exercise over the franchisee must be addressed to ensure that the obligations contained in the contract are met. Especially those related to the payment of royalties, the corporate image, the procurement system and the improper use of the brand.
- Although there is no standard for the duration of a franchise agreement. The most common are usually contracts of between 5 and 10 years in length. It should be taken into account that the duration of the contract must be greater than the amortization time of the investment by the franchisee.
- The financial obligations of the parties must be clearly stated in the contract. The most commons are:
- The entry fee, which is the single payment at the time of formalizing the contract.
- The Royalties that are the monthly or periodic payments that are established in concept of belonging to the brand, advertising and other concepts. They can be set as a fixed payment or a variable percentage based on the franchisee's earnings.
What must the customer provide?
- Complete information, both the owner of the brand and its representative.
- Complete information about the business you want to franchise.
- Any specific information that you want to be included in the contract.
Up to 3 draft contracts will be sent to you for evaluation. Each additional draft correction will be billed at $ 75.00 each.