Signing a franchise agreement is one of the final stages in your franchising journey before taking the steps toward a grand opening. A franchise agreement is a legal, binding document the franchisor provides that details various elements related to the opportunity and the franchise system. From information on territory rights to the use of trademarks, and much more in between, this is an essential document to review and understand before signing and moving forward.
If you currently at this stage or just looking ahead, we have outlined some of the obligations and milestones you can anticipate upon signing a franchise agreement.
The Initial Franchise Fee
After signing the franchise agreement, you will be required to pay the franchise fee. This is a one-time payment that the franchisor has established and will have outlined in the franchise agreement.
Payment grants you the “green light” to join the franchise and attain the rights to become a franchisee, including access to the trademark, licenses, branding, and more. This fee is separate from ongoing fees you’ll be required to pay, such as royalties, which commences when you launch.
Attending Franchise Training
Franchisor-led initial training is crucial for your franchising journey. It will help prepare you to run business operations and effectively align with the business model. Franchise businesses will vary in how they run their training, where they conduct it, and for how long, which is why it is important to confirm the commitment required of you prior to signing any agreement; it will typically be outlined in the disclosure document provided before the franchise agreement.
Because training can occur outside of your city or province, you will likely be obligated to take the necessary steps to travel there, including transportation and lodging.
Adherence to Brand Standards
Now that you have signed this legal document, your actions regarding the franchise must follow the standards and guidelines set by the franchisor. From site selection to construction/design to eventually hiring a team (if applicable), all steps must remain consistent with what the franchisor has developed for their network. This consistency creates a standardized process for all franchisees, providing clarity and predictability.
The franchisor will likely provide you with an operations manual, which will contain detailed steps for daily business operations in line with the franchise business model.
Upon signing, you will likely be obligated to keep most franchise details confidential, as the brand standards are strictly private to the involved parties.
Grand Opening
If you’re investing in a franchise that involves opening a physical store, you’ll need to prepare for the grand opening. This can include ordering inventory, prepping workstations, etc. On a larger scale, you may also need to create marketing materials for your location. Franchisors often provide marketing support for franchisees and may even handle the marketing for your location. However, you can also establish social media accounts and spread the word about your franchise opening in the community to promote the location and attract potential customers. This is a great opportunity to meet potential customers and generate excitement about your new location.
Franchising with The UPS Store
Considering franchising with The UPS Store? Find out why we can be a great opportunity and how our support and premier training program can set you up for success. Have questions about this opportunity? Check out our FAQ page for details. You can also fill out our online form to request more information.
