A Franchise Purchase Agreement is an agreement where franchisor party allows franchisee party the right to run a business that uses the name, trademark, marketing and products of the franchisor, i.e., the franchisee is looking to buy a franchised business off the franchisor. Franchises are normal way for businesses to develop into new markets and locations. In this kind of agreement, the franchisees normally have to pay royalties to the franchisor, depending on sales of the franchised product.
Commercial Lawyers Perth, is a firm with experienced and professional lawyers who can help you with any kind of contracts or agreements. Our lawyers act for both franchisors and franchisees. We can also help with drafting key documents, negotiations, leasing, intellectual property and, purchasing and selling a franchise. If you require legal advice about franchising law, don’t hesitate to contact us.
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Franchise purchase agreements normally have a restricted duration. Franchisees only have the right to handle the franchise for the duration of the agreement and in most cases, there is no guarantee that the agreement will be extended or renewed. Franchise purchase agreements must to be flexible. If the franchise agreement term is long, then chances are few business alteration will need to be made along the way.
Some of the terms that should be in the agreement are:
- Clear description of the parties to the agreement,
- Nature of the franchise
- Term of the agreement
- Agreement renewal process
- Franchise fees payable
- Territory rights
- Lease requirement
- Operation of the business
- Sale of business
- Clauses covering disputes and termination
Before signing the Franchise purchase agreement, it is always advisable to contact an experienced lawyer who can review your contract and advice you on legal matters. Our commercial law lawyer Perth has assisted many franchisors and franchisees with their franchise needs and achieved many positive results for their clients. If you have any further queries, feel free to contact us – Commercial Lawyers Perth.