Franchise Contract

How a Franchise Contract Agreement Can Benefit You

A franchise contract agreement is a legally binding contract between a franchisor and franchisee. The contract can be difficult to understand at first, but these documents are typically unilateral (meaning benefiting one party more than the other—the franchisor) in nature, and they outline how the business will be run and how similar it must stay to the parent company.

It is of the utmost importance that you as the franchisee uphold all the provisions of the contract

So it might be necessary to have a solicitor go over each detail with you in understandable, explicit terms.

It’s a good idea to have any verbal promises that were made to you regarding your franchise included in writing in the contract, as well as:

- Expected costs and revenues
- The duration of the contract
- Advertising parameters and/or requirements
- Hours of operation
- Dress code
- Operations manual and required versus optional offerings
- Supplies and equipment needed
- Personnel policies and training (with CoLaz, we handle all the training so you are free to manage hands-off)
- Selling, transferring, or terminating your agreement
- Territory and expansion options

Ordinarily, these are things you will have gone over with CoLaz before you have even drawn up a franchise contract, as it’s good to be aware of all the franchise details in advance. The contract is generally most effective when adhered to without variance by either party.

Be wary of a completely negotiable contract that lets the franchisee change too much about the new location

As this gives too much opportunity for the brand to be critically altered, diluting its market influence and affecting the success and proven financially stable methods of the company and franchise.

To find out more about the implications of a CoLaz laser hair removal salon franchise contract agreement, click here to fill out an inquiry.