What to Look for in a Franchise Agreement
Franchise agreements are a legally binding contract that oversee your relationship with your prospective franchisor. It’s important to understand the different clauses and terms stated in the contract to ensure that you have a complete understanding of what you are getting into. Laser Clinics UK shares the different items that should be present in an agreement before you purchase a franchise business in the United Kingdom:
Franchise Duration
Becoming a franchisee means you’ll be operating the business for a definite period of time. It’s important to ensure that the duration of the franchise is clearly stated in the agreement. Make sure to ask any questions about what happens at the end of the period and if a renewal clause is possible.
Franchise Costs and Fees
When purchasing a franchise business for sale, you would have to pay an initial fee to join the brand called the franchise fee. You should also ensure the franchise agreement lists all the other costs that you would have to pay as part of the franchise ownership. This will allow you to determine whether you can meet the costs of running a business such as property maintenance, repairs and payroll etc.
We recommend thoroughly reviewing this section of the agreement to ensure that you have an in-depth understanding of the exact costs of running a franchise. Having a solid understanding of the costs and fees will also allow you to estimate how much profit you can generate.
Training and Support Materials
Since franchises are already existing business models, they are built on specific processes and systems. It’s important for your potential franchisor to provide you with the proper training and ongoing support to ensure that you can operate the franchise in accordance with their rules and regulations. Be sure your agreement specifies the different training materials that the franchisor will be providing.
At Laser Clinics UK, we’re offering locals with an excellent franchise opportunity. Join our widely growing network and be part of one of the top cosmetic clinics in the UK. Contact us today for enquiries, or click here to find out more.
