Google+

Franchisees…Let’s Talk Territory!

 

Franchisees…Let’s Talk Territory!

 

Being secure in the fact that your territory is protected is a must for a franchisee. Without the territory being fully protected the market is not, which means, bottom line, your revenues may not be what you expect when you first sign the papers and become part of the franchise.

 

Before signing the Franchise Agreement, you must make sure that your territorial rights are laid out completely. You must also realize that the words exclusive territory rights are not always what they seem to be. Franchise Agreements that do stipulate exclusivity of territory very often do not address the ‘what if’s” that can happen to a franchisee – situations that can severely effect your profits.

 

Having a franchise attorney on your side who knows how to verify every facet of what “exclusive” really means when it comes to your agreement is a necessity. This attorney will understand that the territory needs to be looked at far more in-depth, and work through all types of situations, such as discovering if the exclusivity applies to a set geographic area with specific borders, such as a square mile limit, or whether the exclusivity of territory being presented to you is allocated by demographics – which means population numbers or the minimum number of households in the area.

 

Demographics is a whole new ‘bag of tricks’ when it comes to the territory arrangement because, as we all know, life changes on a daily basis. Whether changes arise because of the economy or jobless rates, population numbers can change quickly, as well as the size and structure of the neighborhoods in your territory.

 

A good example of this is when an increase in population occurs, a franchisor could be entitled to open a competing franchise close to your supposed “exclusive” territory – cutting into your profits in a very big way. Suffice to say, the “what if’s” are necessary to understand before committing your time, effort and ingenuity into opening your own franchise. There are some franchisors who offer the “right of first refusal,” which actually gives the existing franchisee the option to take over the new territory before it’s ever offered to anyone else; this is one of many issues that the franchise attorney can unravel.

 

There is also the issue of a franchisor being bought out by a competitor in your territory. This, yet again, is a place where you need to have contingency clauses in the Franchise Agreement in order to protect your territory rights in the case of a merger or acquisition. Compensation must exist for the franchisee. Whether that be receiving fees from the new competitor, or being offered a provision in the Franchise Agreement to have the option to buy the competing location at a fair market price – these details need to be shown in black and white.

 

Mike Rosenthal, Franchise Attorney, is the skilled individual you want on board before signing that Franchise Agreement that locks you into a situation that may not be clearly spelled out – a situation that could end up costing you money instead of providing you with the yield you expect.

 

There are very basic questions that franchisees forget to ask when heading into a business deal that is both new and exciting. A few examples include: How is the territory actually defined and is it really exclusive? Are you, the franchisee, allowed to choose the territory and then select the location you want within that territory? Does the franchisor have the right to force you to relocate at a later date?

 

“Exclusive territory rights” and “first refusal rights” are only a couple of hurdles located in the tricky waters of opening a franchise; and any rules and regulations that are not spelled out can jeopardize your franchise later on down the line.

 

Due diligence is a necessity for your new venture. But with all the work that must be done in other areas, such as marketing, advertising, building a skilled staff, and the day-to-day operations of the franchise, Mike Rosenthal is the one to turn to in order to make sure the legal side of things is taken care of correctly so that you and your investment are secure.

 

Opening a franchise is a serious commitment and, like the old line states, everything must be in writing! This is your future – make sure it’s protected.

 

For more information, head to:

www.franchiselawhelp.com

Entertainment

Spectacular Disaster Flick Depicts Real-Life Events Surrounding BP Oil Spill

  Deepwater Horizon Film Review by Kam Williams Spectacular Disaster Flick Depicts Real-Life Events Surrounding BP Oil Spill On April 20, 2010, the Deepwater Horizon drilling rig, located 41 miles off the coast of Louisiana, exploded when high-pressure methane gas blew out the drill pipe. 11 members of the crew perished in the ensuing fiery inferno which engulfed the platform. The accident also caused the worst oil spill in U.S. … [Read More its Good for You.....]

Books

Richards Rocks!

  Sandra L. Richards The “Rice & Rocks” Interview with Kam Williams Richards Rocks! The American-born daughter of Jamaican immigrant parents, Sandra L. Richards is the author of “Rice & Rocks.” She hopes that her debut picture book will serve as an educational resource for families seeking to teach their children the value of their heritage and the importance of cultural diversity. Sandra completed both her undergraduate and … [Read More its Good for You...]

Art

More Than a Score

  ACRONYM TO FOLLOW by Peter Brav   Finally Our Day has come There’s a Day for everything For doughnuts, siblings, eight track tapes Grilled cheese, daughters and sons to work Encouragement, Alzheimer’s Coffee, math, chewing gum Blasphemy, yo-yos And now finally One for us Truly a Day to celebrate National Don’t Shoot An Unarmed Brother Doctor King Not Seeing Progress George Orwell Laughing It Is So About the … [Read More its Good For You...]

Real Estate

New Home Sales Jump in April

  New Home Sales Jump in April By Burt Carey Sales of new homes hit their highest rate since 2008 in April, according to the Commerce Department’s U.S. Census Bureau. April sales increased 16.6 percent over March figures, which correlates to a seasonally adjusted rate of 619,000 home sales projected for the year. The median price of those new homes was $321,000, the highest median price ever recorded. That’s up 9.7 percent … [Read More its Good for You.....]

Lifestyle

Richards Rocks!

  Sandra L. Richards The “Rice & Rocks” Interview with Kam Williams Richards Rocks! The American-born daughter of Jamaican immigrant parents, Sandra L. Richards is the author of “Rice & Rocks.” She hopes that her debut picture book will serve as an educational resource for families seeking to teach their children the value of their heritage and the importance of cultural diversity. Sandra completed both her undergraduate and … [Read More its Good for You...]

Outdoors

Apex Gear ACCU•STRIKE XS Series Bow Sights

  Apex Gear ACCU•STRIKE XS Series Bow Sights By Brad Fenson As an avid bowhunter, I’m always looking for a sight to not only help me acquire a target accurately and quickly but provide adjustability while being lightweight. It might be a lot to ask for but with a wide array of hunting situations, you have to be selective in your equipment to ensure you are always successful in the long run. The Apex Gear ACCU•STRIKE™ XS was … [Read More its Good for You...]

Sports

There Are Superheroes Among Us

  There Are Superheroes Among Us by Amy Lignor   This story truly proves that a superhero does not require a cape, tights, or the ability to fly. In a world where all headlines seem to be centered around who shot who, who is being put upon, who’s “getting away with it” – all the way to who is getting divorced and who may or may not be kneeling at NFL games – negative stories seem to be the only ones covered anymore by the media. … [Read More its Good for You...]

Business

Scholastic Announces Sales of More Than 3.3 Million Copies of Harry Potter and the Cursed Child

  Scholastic Announces Sales of More Than 3.3 Million Copies of Harry Potter and the Cursed Child Parts One and Two New York, NY (August 10, 2016) — Harry Potter and the Cursed Child Parts One and Two script book, the eighth Harry Potter story by J.K. Rowling, John Tiffany, and Jack Thorne, published in the U.S. and Canada by Scholastic has sold more than 3.3 million copies in North America to date.Scholastic announced a first printing … [Read More its Good for You...]

Travel

Vacation Time Has Turned “Spooky”

  Vacation Time Has Turned “Spooky” by Amy Lignor   Myths and legends, both spooky and surreal, are becoming the subject of many books and newspaper articles lately. And the location of many, oddly enough, happen to be in the Southwest. It used to be that a nice white sandy beach was the one place we yearned to go on vacation to get away from it all. Now, however, people are searching for places to travel where legends still exist, and … [Read More its Good for You...]

Green Living

Doing Our Part

  Doing Our Part by Amy Lignor   There are books being published as of late – wonderful books telling the stories of amazing wildlife rescues, as well as neighborhoods and communities across the U.S. that have taken on projects to save the wildlife in their own surrounding areas.   We always talk about these “success stories,” yet never actually give information on exactly how these “problems” turned into “victories.” … [Read More its Good for You...]