Sales Franchise Agreement Assessment

Date: [Date of Assessment]

This assessment is designed to thoroughly evaluate key aspects of your franchise agreement with [Your Company Name], ensuring clarity on sales and marketing strategies, financial obligations, support and training, performance expectations, and the terms of contract duration and termination. Carefully review and provide detailed answers to each question.

1. Sales and Marketing Strategy

Your franchise agreement will include details about the company’s sales and marketing strategy. Use this section to assess how well-aligned your franchise’s approach is with [Your Company Name]'s overall brand.

Does the franchise agreement provide clear guidelines for implementing the sales and marketing strategy?	Yes, the agreement specifies the use of [YOUR COMPANY NAME]'s approved marketing materials and campaigns.
Does the franchisee have the flexibility to adapt the sales strategy to local market conditions while remaining consistent with the overall brand message?

2. Franchise Fees and Ongoing Costs

This part of the assessment will help you understand the financial obligations a franchisee has towards [Your Company Name].

Are the initial franchise fees, ongoing royalty fees, and advertising fees clearly stated in the agreement?	Yes, initial fees are $30,000, with 5% ongoing royalties and a 2% national advertising fund contribution.
Does the agreement provide clear information on other recurring costs, such as inventory, staffing, equipment maintenance, etc.?

3. Franchise Support and Training

[Your Company Name] provides franchisees with the necessary training and support to run a successful operation.

Does the franchise agreement outline the scope of initial and ongoing training programs offered by the company?	Yes, it includes a 4-week initial training program and ongoing yearly training sessions.
Are there guidelines to help the franchisee access regular support from the company?

4. Performance Expectations and Standards

It's crucial that franchisees understand what performance standards they are expected to meet.

Do the performance benchmarks and evaluation methods outlined in the agreement align with your company's performance expectations?	Yes, the benchmarks are aligned with company-wide expectations, focusing on sales growth and customer satisfaction.
Does the agreement clearly outline the consequences for failing to meet these standards?

5. Term and Termination

An important part of a franchise agreement is understanding the terms relating to the duration and possible termination of the contract.

Does the agreement provide terms and conditions for renewing the franchise agreement?	Yes, it allows for a 10-year renewal term subject to meeting performance criteria.
Are the reasons for potential termination clearly defined and are the related procedures fair and reasonable?

In addition to these questions, always take the time to review the entire agreement carefully. It's also helpful to engage the services of a lawyer who specializes in franchising.