How Can Clothing Franchisees Avoid Being Cheated?

< p > before signing the a target= "_blank" href= "//www.sjfzxm.com/" > dress /a > franchise contract, we should know all the franchisees.

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< p > at least 2 weeks before signing the franchise contract, you should receive a franchise information disclosure document from the franchise Licensing companies.

This document is drafted by a solicitor of a franchise company. These complex documents usually run for hundreds of pages, and various terms may also be intimidating to readers.

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< p > but please do not be afraid.

With the help of some of the best attorneys, we summarized the important clauses in the information disclosure document of franchising.

Here, we will help you to interpret these clauses, explain the importance of each clause, and point out the potential dangers.

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< p > < strong > franchising company < /strong > /p >

< p > this provision is a comprehensive introduction to the history, ownership and partners of the franchise Licensing companies, as well as the types of franchising.

In reading, we should pay special attention to whether the company's overall presentation is clear.

If you do not understand this step at all, it will be very difficult to read the rest.

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< p > < strong > the business experience of franchising managers is less than /strong > /p >

< p > it is very important to understand the leaders of franchising companies. This will help you to know if you can get along with them and decide whether you are willing to join.

Try to cooperate with those who have sufficient experience in management and franchising.

Special attention should be paid to avoiding leaders who have no experience in the franchise field or have had many failures in other business areas.

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< p > < strong > litigation clause < /strong > /p >

< p > this clause can help you understand whether the company and its leaders have ever been lawsuits.

Through these, you can predict whether the company will be prosecuted and whether it will prosecute others for infringing the trademark and whether they will sue the franchisee without following the quality standard (which is probably a good thing).

It should be noted: whether any of the franchisees had been prosecuted for a fraud in the company or company.

If certain lawsuits from the franchisees and consumers are still in the air, please seriously consider whether the company is likely to be bankrupted once these franchisees and consumers succeed in prosecution. < /p >

< p > < strong > bankruptcy clause < /strong > /p >

< p > this clause is rarely noticed, because you have certainly done a full background check on the company that wants a href= "//www.sjfzxm.com/news/index_s.asp" to join /a, and have conducted a survey of the financial background of the company's leaders.

However, those who need to pay attention, besides the boss of the company, and any directors or supervisors, if they have had bankruptcy experience or are at the brink of bankruptcy, you should consider carefully.

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< p > < strong > franchise fee, other expenses and initial investment < /strong > < /p >

< p > this provision is an overview of the cost of franchising.

Before the recent recession, all the franchise fees are not negotiable, but in the past 3 years, some franchised Licensing companies have launched preferential franchise fees policies, which should be embodied in this clause.

If you see that the membership fee can be adjusted according to the qualification, you need to ask Licensing companies if you are eligible for a more favorable affiliate fee.

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< p > provisions on other expenses, including < a target= "_blank" href= "//www.sjfzxm.com/" > dress < /a > royalties and advertising fees, etc., which need to be charged according to scale.

Please note that not all costs will be reflected in this clause, including product cost and inventory cost.

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