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Franchise advice


franchise agreement does not contain provisions relating to operational matters. That is because a franchise agreement works in tandem with the franchisor’s operations manual, which deals with all of the day-to-day operations of your business. The manual, unlike the franchise agreement, can (and indeed should) be changed and updated by the franchisor on a regular basis, but the franchise agreement should make it clear that if there is a conflict between the agreement and the manual, the agreement ‘wins’. The franchise agreement cannot be changed, at least until the renewal date. Both you and your franchisor need


to know and understand what is in the franchise agreement. That is not the same thing as having the franchise agreement on your desk and constantly referring to it – if


that is happening the relationship between a franchisor and its franchisees has broken down. You will never love your franchise agreement, but you will hopefully recognise its importance. l


John Pratt


Partner at Hamilton Pratt, a specialist franchise law firm


BUSINESSFRANCHISE.COM 25


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