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Create the Right Franchise Documentation and Franchise Agreement Before You Begin Franchising

By Francis Pryor Subscribe to RSS | May 26th 2012 | Views:

Franchises are a way to get into business quickly, with a brand name, proven methods of operation and a support structure. Taking up a franchise is legally complicated. As a franchisee, you pay money for the right to use the franchisor's Trademarks, systems and methods. Many franchises are legitimate and successful. The legally required franchise documentation is intended to provide full disclosure to the prospective purchaser. In reality, the franchise documentationis voluminous, full of legalese, extremely one-sided in favor of the franchisor, and packed with restrictions and fees.

Every franchise opportunity has Franchise Disclosure Documents (FDD) if you are in the US or other franchise marketing kits in other countries which franchisors make to present their business opportunities. The contents of an FDD are outlined by law and are the similarly outlined for any franchise in the US and is unregulated in several other franchise markets of the world. Among other information in it, you will find information regarding the growth curve of their franchises for the last few years, and you will be able to see trends.There will also be financial information, as well as a listing of all franchises. You can gauge the extent of investment that will be require to start up the particular franchise business, and the month to month end running cost. You can also get and insight of the ROI factor. After carefully studying each and every aspect of the FDD/ KIT, you will be in a better position to contact these owners and take it to the next level. You must also find information about any current or recent litigation against the company.

Franchise operations manual is a document that has to be worked out at the very beginning of establishment of the business so that the management and the executives have a clear vision of what has to be achieved and how it will be achieved. This is indeed the bible for a franchise which clearly charts out the roles, tasks and set achievement milestones for both the employees and the company to call itself a franchise.

Deciding who writes the franchise operations manual is a relatively simple question to answer, yet many new franchise companies out of ignorance assign the job to wrong people. Asa new franchising business requires lots of legal requirements to be fulfilled, franchise operations manuals, putting into practice a properly developed training programs, etc., they should delegate those responsibility to experienced franchise consultantswho can produce the operations manual and complete other modalities.

Franchise operations manuals and training programs are developed, often from scratch, to impart business operating skills to the franchise owner as well as ensure uniformity of products and services. The franchise operations manual and training program curriculum must be drafted with a particular focus. Certain topics, chapters and policies found in manuals for a company-owned chain, for example, are entirely inappropriate in a franchise environment, creating significant liability (lawsuit) issues for the franchise division. The operations manual is part of the franchise agreement at most times and hence is not just a operational document but a legal document as well.

In conclusion, before you create a franchise agreement for your business, check it out carefully and make sure you understand what thefranchise documentation say and link it properly to the manuals and other communication. The advice of a business attorney knowledgeable about franchising can help you understand the legalese and create the right framework for your business.

Francis Pryor - About Author:
Sparkleminds offer you information regarding modern methods that catalyze franchising making franchise expansion through Franchise Documentation and Operations Manual. The expertise is always aimed for a long-term sustainable solution.

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