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The Franchise Agreement is included as an exhibit in the Uniform Franchise Offering Circular (UFOC) and is the actual contract between franchisor and franchisee. The UFOC describes the content in the Franchise Agreement. You must be an active participant in writing the Franchise Agreement so that you understand, without question or doubt, all the content. Do not accept a generic Franchise Agreement. Do not accept any phrases or clauses you do not understand. All content should be familiar due to your involvement in the writing of the UFOC.
Typically, there are 16 articles in the Franchise Agreement, and they loosely correlate to the UFOC. There are also appendices, including acknowledgement and a personal guaranty to be signed by the franchisee.
This is a critical document and it will be tempting to skim over it as it is the same material that is in the UFOC. Do not skim! Not only the franchisee but also you will be bound by this contract.
|Sheri Ann Richerson|