Unlock the Power of Legally-Binding eSignatures for Franchise Contracts in Australia

How to eSign a document: e-signature licitness for Franchise Contract in Australia

hello I'm Tony Fitzpatrick the franchise Guru and in this video I'm looking at the question of can I get out of a franchise agreement no one should enter into a franchise agreement thinking they can walk away from it it's not as easy as that you don't have the right to quit when it suits you a franchise agreement is a contract like any other before signing both parties make a commitment to work together for an agreed term usually in franchising 5 years the franchisor will have invested time and money into the recruitment process and also into the training of the franchisee they want to see the franchisee put in whatever effort is necessary to make the franchise a success and they will expect the franchisee to honor his commitment to pay royalties or management fees due under the agreement during the term should you want to terminate the agreement before it expires you would be in breach of the contract and the the franchisor could sue for the amount he would have earned had you continued to be a franchisee this sum could be substantial obviously things can go wrong there are winners and losers in franchising and sometimes a franchisee finds the going more difficult than he initially expected and wants out you have two choices try to rebuild the business and stick with it or try to sell it yourself this won't be easy if the business isn't making money you would need to get help to turn things around and make the business attractive to a buyer either way you need to be discussing the issues with the franchise or at an early stage the franchise or will always want to help if they can it's not good for them to have a franchise fail reselling the territory can be difficult because any New Prospect will want to know why it didn't work for the previous franchisee it will suit them best if you can find a buyer yourself someone who can slip into your shoes without anyone else knowing about it the sit situation is different of course if the franchisor is at fault for example if there's a fundamental flaw in the business system which prevents every franchisee in the network from being successful or if the franchisor is not providing the support or service the franchisee is entitled to then the franchisee may have the right to terminate the agreement without paying penalties thank you for watching until the next time for more information on franchising visit franchise your business .