You may be thinking about owning a JEI franchise but are unsure about important franchise agreement elements. When you become a franchise owner, there are some things you will need to take note of in terms of the contract itself to ensure you do not breach any agreements. Here are some important franchise agreement elements to take note of!
Grant of Franchise
One of the most important sections of the contract you should take note of is the “grant” section. This section informs franchisees that the franchisor will grant them a non-transferable, non-exclusive and limited right to use logos, trademarks and the operational model belonging to the franchisor. This will last for the period defined within the contract. This also means that if there is a breach, the franchisor has every right to terminate the agreement with the franchisee.
Other Rights like Exclusivity or Launch Date
In the agreement with the franchisor, the franchisee will also have to set up their business at a location within the time period defined in the agreement. The agreement will also state whether the location in which the franchisee is setting up the business is exclusive.
Royalties and Startup Fees
This part of the agreement will inform the franchisee of the amount they must pay for the startup fee, the amount required for an ongoing period and the amount they must provide for the marketing or advertising services carried out by the franchisor. Another thing to look out for would be the clause that describes the profit sharing or revenue agreement between both parties.
Advertisements
In this section, the franchisee will understand the obligations on the franchisor’s part, such as the type and frequency of the advertising the franchisor will carry out for the franchisee as well as the cost incurred.
Renewal and Term of Franchise
This section indicates how long the agreement will run, including both the start date and end date of the contract. This section will also state the requirements of both parties should there be a possibility of renewal in the future.
Franchisor Support
Read this section to understand the type of support or service the franchisor will provide to franchisees during the term of their agreement. This includes training programs and equipping new franchisees with the relevant skills and knowledge to be able to run the franchise well. Franchisors may also be in charge of helping their franchisees groom talent like managers for their franchises.
Are you thinking about becoming a franchise owner? Do consider JEI Learning Center. JEI Learning Center offers strong support for its team of franchisees, providing them with frequent training sessions to keep their skills up to date. Furthermore, it is not only a meaningful franchise to own, since it can impact children who enroll in your center, but also proven to be a successful business with a reliable business model. Visit our website and find out how you can get started as a JEI Learning Center franchisee today!
