Profit system consultants have rich experience in drafting and negotiating franchise agreements and agency contracts.

Franchise agreement

Franchise agreement is the cornerstone document defining the relationship between franchisee and franchiser. It is the document that is legally binding on both parties, laying out the rights and obligations of each. Franchise agreement should comply with the business model of this system.

Services for the system organizers

Each activity has specific characteristics that should be reflected in the provisions of the contract. There are a set of issues which must never be lacking in a professionally drafted contract:

  • conditions of accession to the system;
  • granting a franchise (authorization to perform the duties of agency);
  • duration of the contract;
  • area of franchisees (or partner) activity;
  • the rights and obligations of the parties;
  • protection of trade marks and indications of the network;
  • protection of business secrets;
  • competitive activities;
  • business trainings;
  • franchise and marketing fees (agency commissions);
  • marketing and promotion;
  • franchisor (the organizer) powers of control;
  • termination of the contract.

In Polish, Czech or Ukrainian law franchise agreement belongs to innominate contracts, which means it is not regulated in the Civil Code or any other provisions in civil laws. Franchise agreement may be concluded on the basis of the so-called freedom of contract principle, whereby the contracting parties may shape their legal relationship at their own discretion, as long as the subject matter does not conflict with state law, the nature of the relationship or the principles of social coexistence. With this in mind your franchise agreement will need to be translated and precisely adjusted to legal system or drafted from the very beginning.

It is also important to adapt the contract to the business relations typical for each country. This will make the franchise contract more attractive to potential franchisees.

Services for candidates for system partners

Franchise, agency or partnership contract is the basic document regulating relations between entrepreneur and system organizer. Usually its long-term contract. Franchisee, agent or partner signing the contract needs personal involvement and investment of their own, often large, money. Unfortunately, there are situations where the proposed agreement puts the system organizer in the over-privileged position. Therefore, before signing it, a candidate for the partner should carefully read the text of the agreement to be fully aware of future rights and obligations. Each fair system organizer easily provide the candidate a draft agreement for the latter to become acquainted with it and consult with their advisors.

PROFIT system consultants have extensive experience in drafting and negotiating franchise, agency and partnership agreements. We show candidate for a system partner real risks arising from the contract. Contrary to appearances, this is not an expensive service, while also taking advantage of the help of an experienced adviser, you can avoid unnecessary nerve and loss of savings.

Please contact one of our offices for more information.

Each country has specific legal regulations,
that may affect franchise contract