The franchisee’s obligations
FRANCHISEE
HAS
DUTIES
Every franchisee is subject to a certain number of obligations, the respect of which is necessary to ensure the sustainable development of the franchise network and the establishment of a peaceful relationship with the franchisor.
1. Before signing the franchise agreement, the franchisee is recommended to:
- ensure that the franchise system meets his/her expectations. Training courses are available to explain the basics of the system, how it works and how it is organized.
- ensure the concerned industry are appropriated to their desire.
- ensure that he/she has sufficient financing. The easiest way to do this is to get in touch with a bank in order to assess its financing capacity in a peaceful manner.
- meet its match: each franchisor has its own motto and organization. It is up to the franchisee to question the various players in the market that he or she has identified in order to select the one that suits it best.
- carry out a deep market study once the FDD (Franchise Disclosure Document) has been handed over by the franchisor, as the FDD only includes a presentation of the market.
- work on its business plan with his/her advisors and experts.
- read the FDD extremely carefully and do not hesitate to ask the franchisor all the necessary questions.
These recommendations are obviously not exhaustive, as each case is different.
2. After signing the franchise agreement, the franchisee must, inter alia:
- comply with the terms of the franchise agreement and especially the financial conditions arising from the franchise agreement, as well as the compliance with the standards arising out of the concerned concept.
- take part to the dynamics of the Franchise network by participating in any training courses or conventions offered.
- make sure not to divulge the franchisor’s know-how, which is confidential.
Becoming a franchisee is, therefore, not an easy task, and involves thinking about a strategy in advance!
Becoming a franchisor
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