Obligations of parties
February 16th, 2010 | Author: Farid
Contracts are free and can include a variety of clauses. However, these are some of the most common.
The franchiser or franchisee is committed to:
- to license the brand and identification marks of the same: logo, corporate colors, etc..
- transmit the know-how or know-how ‘the franchisee through several methods: staff training, ongoing support, etc..
- making an investment in brand advertising for a newspaper agreed amount (based on the royalty of advertising).
- provide technological assistance.
For its part the franchisee or franchisee must pay an initial fee and make periodic disbursements or royalties. These royalties can agree as a flat amount or as a percentage of sales.
- preserve the brand image of the franchise holding company acting with honesty and aesthetic requirements and cleaning establishments.
- truss business methods and the ‘know-how transmitted.
- purchase supplies from the franchiser, in many cases exclusively.
- subject to control by the franchiser.
This is roughly the producer makes a sale original format or a business concept that includes rights, service strategies and even the “good will”.The buyer makes a fee,to establish their own business, exploiting the products and brands and positioned in the market and therefore have gained prestige.Agreement between the provider of a standardized product or service and other companies acting as distributors or distributors of the goods or services under the name of the supplier.Contract through which a company authorizes you to use your brand and sell their products under certain conditions, which usually include training services and / or technical assistance.
