Over the last decade, it’s quite difficult to sale the franchise system through liable source. It seems too necessary for any franchisor to know the exit strategy to find out a potential buyer along with handsome output. One thing should be remember you product should be more organized to get better sale price. Some legal issues must be in our mind while at the time to sale our franchise system is listed below.
- Copies of essential documents:
The franchisor should keep the copies of all legal and fully signed dated documents in record like
Franchise Agreement
License Agreement
Suppliers Agreement and etc.
Certificates on which the Franchising Code should be clearly mentioned.
Signed statements of the disclosure document (signed by every franchisee)
The actual franchisor ought to ensure that almost all franchise contracts and other files are correctly executed as well as dated, as well as implement an activity for examining to be carried out at the time of performance or soon after the performance of files by the dispenses.
- Record of Critical Data:
Each franchisor should keep record of all critical statics including:
Expiry date of each franchise agreement
Expiry date of every lease or even license contract
Dates whenever notices have to be provided with regards to each rent held in the franchisor, concerning whether the franchisor will be restarting such rent, if relevant
- Record of annual and financial Reports:
The actual franchisor have to ensure that this prepares, upon annual foundation, and maintains all duplicates reports of the financial reviews, including the advertising fund’s monetary statements. They are important for both parties using the Franchising Program code of Carry out, or want to rename as per choice. Franchise owner must be keep record of all financial reports.
- Record of Assets and Liabilities Register.
The actual franchisor ought to keep good assets in record as well as liabilities sign up, including information on:
Whether every asset is actually owned overall or rented;
Keep record of any kind of asset or even equipment rent, including a fixed and went out with copy associated with such rent
List of almost all liabilities, home loans, liens due to third events, including duplicates of any kind of contracts, home loans, and so on.
- Worth of our Price
Every franchiser should know the worth of his demand of price in front of buyer to obtain a handsome profit to start another business through generated revenue.
