Matters Needing Attention In Signing A Contract For Clothing Brand Franchisees

< p > the operating contents, business principles and service capabilities of different franchise systems are different, and the contents of the franchise contract will vary widely.

However, as a franchise contract, all of them are the rights and obligations of joining the headquarters and the franchisees.

The contents of the contract are as follows: < /p >

< p > < strong > 1. the right to use trademarks, trade names, etc. < /strong > /p >

< p > in the vast majority of franchise chain system, the affiliate headquarters has the following intangible assets: when signing the contract, it should clearly and clearly explain the intangible assets owned by the headquarters and the types and scope of the authorized franchisees to use these intangible assets.

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< p > < strong > 2. contract period < /strong > < /p >

< p > the duration of the contract is the duration of the relationship between the two parties.

This time is long and short, short is 3~5 years, longer than 10 years, there is no specific standard.

In the contract, it should also indicate the right to allow franchisees to have extended period.

If the contract does not indicate the extension period, and the headquarters does not want to sign a longer term contract, it is likely to show that when the franchisee renew the contract, it will have to pay a high franchise fee.

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< p > < strong > 3. the type of service provided by headquarters is < /strong > /p >

< p > the contract should provide a detailed account of what services the headquarters will provide to the franchisees. These services include initial services before opening and follow-up services after opening.

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< p > initial services: location selection, shop decoration, training, equipment purchase and financing.

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< p > follow-up services: including headquarters to franchise activities, to help maintain standardization and business profits; headquarters to continue to improve and innovate operation methods and to teach to the franchisees; headquarters to conduct market research and pfer information to the franchisees; headquarters to carry out centralized and unified promotional and advertising activities; headquarters to the franchisee to provide centralized procurement of preferential sources; headquarters experts to the franchisee to provide management consulting services.

The detailed list of these service items in the contract is a legal protection for the interests of franchisees.

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The obligation of < p > < strong > 4. > < /p > > > < /strong > < /p >

< p > the franchisee gets the right to use all kinds of intangible assets of headquarters, and gets the support from various services of headquarters, so that its business can quickly stand firm and get on the right track, but it must pay a certain price and bear corresponding responsibilities.

In order to make the franchiser clear their responsibilities and obligations, and in order to restrict the franchisee to perform their duties, these matters must be included in the contract.

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< p > although there are only headquarters and franchisees in the contract as contractors, the headquarters set up a complete set of business rules to ensure the interests of other franchisees and the public, because any franchisee can not maintain its due standard, which will damage the reputation of the franchising system more or less, and then affect the profits of other franchisees. Therefore, the obligations of both parties should be listed in the contract to maintain the interests of all parties.

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< p > under normal circumstances, there are some contents in the operation manual which relate to the obligations that the franchisee should fulfill, and serve as a reference guide for franchisees in their business activities after opening.

With the development of the franchise system, the operation manual will continue to be updated and improved.

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< p > < strong > 5., the control of franchised stores is < /strong > /p >

< p > franchising is characterized by a high degree of uniformity in business and mode of operation, so that independent affiliates can form an external image of capital unified operation under the provisions of the contract.

If one of the franchisees does not operate according to the unified requirements of the headquarters, it will destroy the overall external image and damage the reputation of the whole franchise system.

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< p >, therefore, headquarters must effectively control the franchisees to ensure that the standards and norms of operation can be implemented in a meticulous manner.

Headquarters should take detailed measures to control franchisees' operation in order to get the understanding and acceptance of franchisees.

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< p > < strong > 6. pfer of the franchised store < /strong > /p >

< p > franchisees may not be able to continue to operate franchised stores due to various objective reasons. This involves the pfer or sale of franchisees, whether the franchisees can pfer, how to pfer or pfer to others, etc., must be included in the contract, so as to avoid future disputes.

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< p > some contracts clearly indicate that if the franchisee wants to pfer the sale of his own business, the headquarters will have the priority to purchase, or the right to choose the object to pfer.

In this case, we must pay attention to the pfer price of franchised stores should be based on the market price.

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< p > < strong > 7. arbitration > /strong > /p >

It is inevitable that there will be some conflicts between the two sides joining the P. The way to solve the conflict is more suitable for arbitration.

Arbitration is actually a private action made by the arbitrator chosen by both parties. Its advantage lies in the fact that the whole procedure is carried out in private.

In order to save time and cost, the parties can set the arbitration rules in advance in the contract, and the time for arbitration can be determined according to the situation at that time.

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< p > here, it is very important to choose what kind of person to act as an arbitrator. If the arbitrator chooses unreasonably, the decision made is unfair or unobjective, which will make the two parties or one party dissatisfied. In the end, it will expand the conflict and lead the two sides to move towards the court.

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< p > < strong > 8. terminate the contract and the consequences are less than /strong > /p >

< p > once the contract is established, it can not be torn or terminated at will.

However, there are also incidents that both parties fail to abide by the contract.

The contract should clearly stipulate the extent to which any party violates the agreement and the other party has the right to terminate the contract.

Of course, it should also indicate whether the party who violates the agreement has the opportunity to make up for its negligence so as to avoid the consequences of the termination of the contract.

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< p > generally speaking, after the termination of the contract, the franchisee can no longer use all trade marks, names, symbols and other rights of the headquarters, and shall not engage in similar operations in a certain period of time.

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< p > in addition to the above contents, the contract generally includes geographical restrictions, business hours and business secrets.

Different industries and different enterprises have different contract contents.

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