Thursday, November 20, 2008

Signage Clauses In Franchise Agreements For Mobile Or Home Based Franchising Companies

Writen by Lance Winslow

To maintain the consistency and image of a franchising system, even a mobile-based franchise, each franchisee must maintain standards of signage. This issue will be addressed generally in the confidential operations manual set forth by the franchisor. However, I found it necessary in my franchising companies to go one step further, I inserted a clause into our franchise agreements stating such. Below please find a clause I inserted into each and every one of our franchisees franchise agreements;

3.22 Signage

Franchisee must maintain and display standard signs on Franchisee's car wash truck/unit(s) in accordance with the specifications established by Franchisor and outlined in the Confidential Operations Manual.

All signs on the car wash truck or trailer unit must conform to our sign criteria as to type, color, size, design and location. All signs must be approved in writing by Franchisor prior to installation or display if they do not conform to the Confidential Operations Manual.

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All franchising companies must address the signage issue. In location based franchisees such as retail outlets it is a much more serious issue, but all too often simplistic home based or mobile franchise companies do not address this matter properly. I would recommend that you seek the professional legal counsel of a franchising attorney who is knowledgeable inexperienced so that you might address this issue properly if you run a franchising company. Consider this in 2006.

Lance Winslow

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