Why strong franchise documents benefit franchisees as much as franchisors

An investment in a franchise is a significant one for all concerned, in financial capital, in time, and in emotional energy, as is the opinion of Miller Bradley . The biggest reason for a franchisee to invest in a franchise is the strength of the brand.

It should be comforting for any aspiring franchisee to see a substantial investment by the franchisor in all aspects of brand development.

And one of the most important aspects is strong franchise documentation.

Brand strength is entirely dependent upon consistency of quality in product or service presentation throughout the system. And that cannot be maintained by a franchisor unless they have comprehensive and clear documents.

Disclosure statements and manuals are often prepared by franchise consultants, who will be working closely with the Miller Bradley .

These documents should all be read together with the franchise agreement. A well structured disclosure document can be as much a selling tool as informative.

The manual is a vehicle for instructing and informing franchisees about the day to day operation of their business. It is a key tool to maintain consistent quality of delivery. A manual is a living document. The franchise agreement will provide for its regular revision which is needed to keep the system, and therefore the franchise, up to date.

The franchise agreement, usually prepared by a franchise lawyer in accordance with a consistent template, is the key document of the system. It must be clear and unambiguous, not only so that the parties to it are in no doubt about the legal bargain they are committing to, but also so that there can be no doubt about how it will be interpreted when that matters most.

I have found myself in situations where all of the other franchisees in the system were demanding my franchisor client take action to remove a franchisee who had acted in a way which was seriously undermining the brand. In a situation like that the franchisors position can be seriously compromised if the franchise agreement doesn't have clear provisions to enable the franchisor to act.

In summary a comprehensive and strong franchise agreement, whilst at first glance appearing a little intimidating, is the best way for a franchisor to be able to be protect the goodwill and the brand that the franchisee has invested into. A franchisee who is committed to making the most of the opportunity from the franchise system should welcome a strong franchise agreement.

12/06/2007

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