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Issues That Should Be Addressed in a Franchise Agreement

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For franchisees, their franchise agreement is the fundamental foundation of their investment. If you are considering putting your hard-earned money into a franchise in Maryland, it is imperative that you have a well-crafted franchise agreement. Your agreement must be clear and it must adequately protect your legal rights and business interests.

Each business lawyer at Brown Kiely LLP has extensive legal experience assisting clients in protecting their business interest and finances. The following is a list of critically important issues that must be addressed in your franchise agreement. A franchisee should never sign an agreement until these issues have been resolved. Please call our office for more specific information.


As a new franchisee, you would benefit substantially from a proper training program. Within your franchise agreement, there should be a concrete plan that details precisely how much training you will receive and to what extent your franchisor has an obligation to provide ongoing training and guidance.

Ongoing Support

Beyond receiving ongoing training, your franchise agreement should also spell out what type of other support your business will get from the franchisor. For example, depending on the precise nature of your business, you may be entitled to receive bonuses, access to loans, capital for property upgrades, access to discounts from suppliers, and much more.

Exclusive Territory

The last thing you need is to be pitted against another branch of the same franchise of which you are a part of. Your franchise agreement must outline exclusive territory for your business. Without this, your ability to grow your customer base, and maximize revenue, could be limited.

Total Investment Costs

Before you invest in a franchise, you need to have a clear view of the total cost of investing in the business. Do not focus solely on upfront payments. You must also consider royalties and any other ongoing costs. Sometimes, franchisors take advantage of franchisees by disguising or understating ongoing costs. Until you consider the total cost, you will not be able to truly understand the viability of the business opportunity. Your franchise agreement must make the total costs clear.

Renewal Rights and Resale Rights

Finally, your franchise agreement should also outline your rights and responsibilities when it comes to renewing the contract as well as selling or transferring your business interests. Ideally, you will want as much control as possible over your business. Franchisees need to take proactive steps to ensure that their franchise agreement is truly in their best interests.

Contact Brown Kiely LLP Today for Assistance

If you are a current or prospective franchisee, and you are in need of business lawyer Maryland clients recommend, please contact Brown Kiely, LLP. Our attorneys have extensive experience in drafting, reviewing, and litigating franchise contracts and are available to meet and discuss your situation. Our legal team will make sure that no matter what type of franchise contract you sign, you will be fully protected.