The contract should specify in detail what services the franchisor will provide for the franchise stores, including initial services before opening and follow-up services after opening.
Initial services: mainly including site selection, decoration of franchise stores, training, purchase of store equipment, financing, etc.
Follow-up services: including the effective implementation of franchise activities by the headquarters to help maintain standardization and corporate profits;
The headquarters constantly improves the innovative operation mode and teaches it to franchisees; The headquarters conducts market research and transmits market information to franchisees; Headquarters to carry out centralized and unified promotion and advertising activities; Headquarters provides franchisees with preferential sources of centralized procurement; Management consulting services provided by headquarters experts for franchisees.
Listing these services in detail in the contract is a legal protection for the interests of franchisees.
About the admission fee
Generally including the initial fee, royalties, advertising fees and other technical support fees.
Generally speaking, the royalty calculation ratio of different franchisees is usually different, and the base used to calculate the ratio (according to a certain proportion of sales revenue or a certain proportion of sales profit) is also different. Before signing the contract, the franchisee should carefully study the calculation method of the franchise fee to avoid disputes caused by misunderstanding in the future.
Mobile should pay attention to whether there are hidden unforeseen expenses in franchise projects.
(1) What items does the joining fee include?
(2) Does it include trademark royalties?
(3) How much self-raised funds can start a business?
(4) Is it necessary to pay royalties or management fees regularly? How to calculate? How to pay?
(5) Does the franchisor provide technicians and management team? How many?
(6) Is it necessary to pay the training fee? How to calculate?
(7) Is it necessary to join the cooperative advertising program? How to share the expenses? What products or promotional services do franchisees provide?
Term of franchise contract
(1) Is the duration clear?
(2) Is the term consistent with the lease term?
(3) Can the contract be renewed after its expiration?
(4) Are there any conditions for renewing the contract? If so, what are the conditions? Is it detailed
On the renewal of franchise contract. This is also a problem that should be paid attention to. As the saying goes, franchisees should pay attention to avoid similar situations.
About the scope of authorization
Including the authorized area, duration, authority, etc.
The authority is divided into three levels: exclusive, exclusive and ordinary, and the authority is decreasing. In addition, if the franchisee is a regional general franchisee, it is also necessary to clarify the development rights, contracting rights, supervision rights and income distribution methods of the relevant market.
The right to use intellectual property rights such as trademarks, patents and copyrights involved in franchise contracts should also be clearly defined in the contracts.
Legal basis: Civil Code of People's Republic of China (PRC).
Article 465 A lawfully formed contract shall be protected by law.
A legally established contract is legally binding only on the parties, except as otherwise provided by law.
Article 466 If the parties have disputes over the understanding of the terms of the contract, they shall determine the meaning of the disputed terms in accordance with the provisions of the first paragraph of Article 142 of this Law.
Where a contract text is concluded in two or more languages, and the agreement is equally authentic, the words used in each text shall have the same meaning. If the words and expressions used in each text are inconsistent, they shall be interpreted according to the relevant terms, nature, purpose and principle of good faith of the contract.
Article 467 The provisions of the General Provisions of this Part shall apply to contracts not expressly provided for in this Law or other laws, and reference may be made to the most similar contracts or other laws in this part.
Chinese-foreign joint venture contracts, Chinese-foreign cooperative operation contracts and Chinese-foreign cooperative exploration and development contracts in People's Republic of China (PRC) shall be governed by the laws of People's Republic of China (PRC).