Moscow, Shlyuzovaya Embankment, 6, bld. 4, office 50

Contracts

Your success guaranteed

Have you decided to sell your franchise? That means there’s a lot to do. To be more specific, you’ll need a franchise agreement, a full set of documents and so on. If you want it to go smoothly, Konsaltika’s team of franchising professionals is there to help you.

Even before the first company shows interest in becoming your franchisee and submits the first application, your marketing plan, brand book, corporate identity should be prepared, and the advertising campaign should already be running. What is required differs from company to company. However, in order to get high-quality leads, one has to work hard.

Selling your franchise

A franchisee candidate has submitted an application. What’s next?  The franchisor sends them a personal offer to make themselves familiar with it. The next step is negotiations. If the franchisee candidate is happy about the offer or a compromise has been reached, the next step is to prepare the necessary documents.

When the documents are ready and both parties have familiarized themselves with and agreed on all the contract clauses, the payment is made. Congratulations! Your franchise has been sold. Time to start working in accordance to the franchise agreement.

Documents needed to sell a franchise

The list of what is needed depends on the industry and other business particularities and thus is made for each client. Here are some documents to expect.

  1. commercial concession agreement or franchising license agreement;
  2. agreement of intent;
  3. certificate of acceptance of premises;
  4. specialist’s on-site visit agreement.

Let’s discuss each of them in some detail.

The franchisor and the franchisee sign either a commercial concession agreement or a franchising license agreement. The former focuses mainly on the transfer of the trademark and the know-how, confidential knowledge and franchisor’s best practices. It has to, without fail, be registered at the Russian Federal Service for Intellectual Property (commonly known as Rospatent).

The latter focuses on the transfer of the know-how, confidential knowledge and best practices, but not the trademark. No registration is required.

Franchisor’s obligations include, in either case, the following:

  • assisting in the production process and/or selling the goods and/or services (technical, consulting, etc. assistance);
  • quality control of the goods and/or services (in accordance with the contractual provisions).

Franchisee’s obligations include:

  1. using corporate identity, business name and other attributes of the franchising program in accordance with the methods stated in the franchise agreement;
  2. keeping trade secrets confidential, if applicable;
  3. following the franchisor’s instructions.

Rights and obligations of both parties are determined on a case by case basis.

Specialist on-site visit agreement

It might be necessary for one or several specialists representing the franchisor to visit the exact location in the region to assist during the initial stage of the franchisee’s business. For instance, the franchisee might need an on-site consultation on location assessment, recruiting and training of the personnel, opening of an establishment etc.

Specialist rights and obligations are defined, and time frames for the necessary procedures, funding and other important conditions are mentioned there too.

Agreement of intent

This agreement is needed to put on paper planned actions, their sequence and time frames.  Filling it out sets the stage for the franchise license agreement or the commercial concession agreement. This document tends to include only the general terms, without going into detail. It usually contains the following information:

  • general nature of the agreement;
  • terms of the agreement;
  • responsibility of the parties to the agreement;
  • possibility to draw on professional resources working for the franchisor or third parties, listing the situations when it might be necessary;
  • payment details;
  • special conditions.

This agreement emphasizes appropriate and inappropriate ways to cooperate, various conditions for the negotiations to continue, price range for a service as well as the franchise license in its entirety. This document helps to avoid misunderstandings between the parties.

Certificate of acceptance of the premises

This document is signed before the franchisee’s establishment is open and is designed to control the franchisee’s compliance with all the franchisor’s requirements and instructions.

A certificate of acceptance contains the following information:

  1. address of the premises;
  2. condition of the furniture and premises, in accordance with zoning;
  3. furniture and equipment arrangement being in compliance with the franchisor’s rules;
  4. compliance with the rules on the use of corporate identity in the interior and the façade;
  5. compliance with the standards on personnel appearance.

Time frame

Preparation of the whole set of documents takes from 7 to 14 days. The time frames and prices depend on the following factors:

  • number and types of documents;
  • industry or business area;
  • franchising conditions;
  • availability and completeness of information;
  • project’s complexity;
  • franchise nuances, franchisor and franchisee’s wishes;
  • other factors.

You can also opt for one of our packages. This service is included into all of them: Start, Optima and All Inclusive. If you might need some other services, consider this option. In this case the time frames will be determined for and depend on the entire order. The package prices are generally fixed.

Ready to order?

Once you’ve decided that you want Konsaltika to prepare the whole set of documents or, for instance, the franchise agreement, call us or send us an email. Our experts will get ready for a face-to-face meeting by analyzing your business and industry. Our managers and the representatives of your company will discuss all the necessary topics and issues.

After the meeting, we’ll prepare a personal offer that states all the documents in your package, their nuances, time frames. Documents are prepared and, if need be or at your request, revised. An agreement based on the offer will be signed by both parties. Having received the payment, our specialists will kick-start the process.

Contact us. Here’s why

When you cooperate with Konsaltika Group of Companies, you can be sure that the set of documents will be prepared and filled out correctly to avoid any future problem.   Why? That’s simple:

  1. our management has been in franchising for more than 8 years;
  2. we are equipped with domestic and foreign projects;
  3. we have experience and expertise across various industries and areas (beauty, education, public catering, entertainment, etc.);
  4. we are proud of our more than 70 implemented projects;
  5. we cooperate with companies from Moscow, different regions of the Russian Federation and abroad;
  6. we can prepare a turnkey package for you.

Thanks to their vast experience, our experts know all the nuances and particularities of the franchising business. Our managers and heads of departments think outside the box to offer specific solutions in each and every case. All documents are prepared and filled out in accordance with the current Russian legislation. Moreover, all the industry particularities are taken into consideration. What’s best, at a good price. Choosing Konsaltika means getting supreme quality documents.

Feel free to find out about the time frames and current prices by calling at +7 (495) 789-59-58 or writing to info@konsaltika.com