What Problems Should We Pay Attention To When Signing The Contract?

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What do you see in the contract? The initial business friends should be relatively unfamiliar with the process of joining the venture, what the details should be and what they should be. Take the contract, what kind of cooperation is guaranteed by the contract! How does the contract of the dress contract be signed? What does the general content contain? Let's take a look! After understanding the contract content, the franchisee should consider the following issues as far as possible, so as to avoid unnecessary trouble in the future.

(1) signing time

Many joining cases show that the contract time is outside the validity period of the contract, or there is no time for signing the contract. If there is a dispute, it will cause some trouble.

(2) signing place

In practice, the Chartered headquarters often signs the location of their company as a contract place in the contract, which often leads to disputes between the two sides.

A good way to deal with this problem is to choose third places outside the domicile of the two parties for the purpose of signing the contract.

(3) the information entrusted by the legal representative and the signatory

In the franchise contract, there is often a legal representative who does not sign personally, and the business personnel sign as the representative. Under such circumstances, the legal representative should sign the power of attorney to the representative.

For franchisees, it is necessary to examine the power of attorney held by the representatives before signing the contract.

(4) arbitration and litigation clauses

In the contract, if a clause is chosen when both parties dispute, they will appeal to the arbitration agency, which means that both parties have abandoned the matter to the court.

(5) the validity of the contract.

The term of validity of the contract is usually 1~3 years.

In some industries, such as food and beverage, etc., for a long time, the franchisor should specify in the contract.

However, it should be noted that if the deadline is too short, it will be possible to terminate the operation for the franchisee who has just grasped the rules.

From the point of view of the franchise headquarters, the validity of the contract is too short, which is also unfavorable. The reason is that training a qualified person will spend a lot of time and energy. Once the franchisee has grasped the operation rules, the contract will expire at that time, it is very easy to create a permit to abandon the headquarters and set up another portal, so that the franchise headquarters is also a loss.

Therefore, we should be careful not to set the contract validity too short.

(6) scope of authorization

Authorization generally refers to the grant of limited use rights.

It is necessary to clearly indicate in the contract where, where and when to use what content, how to use it in promotional activities, and exceed the penalty for authorized use.

(7) cost problem

The cost is the key issue in the contract, and the franchisee should specify royalty and other charges.

Franchisees provide relevant services to the franchisee in accordance with the franchise contract.

The fees charged to the franchisee include the establishment fee, the opening fee, the training fee, the advertising and promotion fee, the promotion fee, the equipment leasing fee, the business expense, the logistics fee, the insurance premium and so on.

When the investment budget is made by a franchisee, the cost must be included and planned in advance.

Normally, the fee does not need to be returned by the franchiser.

(8) margin problem

In order to ensure that the franchisee fulfil the franchise contract, the franchisee may require the franchisee to deliver a certain contract execution margin.

After the expiration of the contract, the franchisee shall return the deposit to the franchisee within a certain period of time without any breach of contract.

(9) terms for renewal of contract

There are two problems that should be stated in the contract. One is the priority of renewal.

Under the same conditions, the current franchisee should have the priority to renew the contract, and the two is the renewal of the contract now.

With the increase of franchisee's popularity, the franchise fee will be increased, and the franchisee may also give partial relief.

(10) conducting audits

The audited candidates are mainly:

First, examine the business tax registration information of the franchisee and personal data of the legal representative.

Second, examine the trademark registration data and delegate information.

If the franchisor has a national patent certificate, the photocopy should be checked.

(4) whether the audit has the qualification to develop franchise chain.

(11) check the manual.

Before signing the contract, the franchisee will see the "Handbook". Most franchisees will not hand over all kinds of operation management manuals to the franchisee, but as a franchisee, they should ask to see if they exist.

Business management manuals generally include shop manuals, shop management manuals, training manuals, etc.

(12) prepare industrial and commercial tax registration information and legal representative's personal data.

(13) prepare the registration information, the information of the trademark, and the copy of the national patent certificate, if any.

How to review garment contract?

Censorship is stipulated in the contract.

Long term relationships (rights and obligations) between franchisees are legally binding, which is a pleasant foundation for future cooperation. Therefore, we must carefully study its contents and understand them one by one, and consult with relevant legal experts when necessary.

In addition, the legal profession believes that in the process of apparel franchising, professional lawyers provide non litigation agents, which can provide investors with rights and interests to a large extent.

Investors have better chain operation lawyers, which can effectively avoid risks and make reasonable investments.

Through the analysis of past cases, the lawyer analyzed the common disputes and solutions of clothing franchising chain operations, and combined with China's existing laws and regulations and policy trends to help investors introduce franchise projects.

When investors have disputes in the process of chain clothing franchise, lawyers can intervene in time, and maximize the investor's economic losses in garment franchising through proxy litigation or arbitration.

Similarly, hiring lawyers can provide services in project risk assessment, contract signing services, contract review services, financing services, agency litigation and so on.