2006-12-11
Perfect franchise agreement should contain precise regulations regerding general provisions for the grant of the franchise, fees, royalties, territory, training, advertising, record keeping, trademarks and termination. It should fully protect franchisor but it also should be friendly to franchisees. It musn’t be just a list of stipulated penelties for franchisees.
Franchise agreement
In Polish law fanchise agreement belongs to innominate contracts, which means it is not regulated in the Civil Code or any other provisions in civil laws. Under Polish law franchise agreement may be concluded on the basis of the so-called freedom of contract principle, whereby the contracting parties may shape their legal relationship at their owndiscretion, as long as the subject matter or the purpose thereof does not conflict with the nature of the relationship, statue or the principles of social coexistence. Therefore franchise agreements may operate in Polish law as innominative contracts within the limits circumscribed by the freedom of contracts principle. In regard to franchising, such limits are laid down by the mandatory provisions of the Competition and Consumer Protection Law.
As Poland has no specific legislation or regulation for franchising, the franchise agreement becomes all-important in determining the rights and obligations of the franchisor and the franchisee and the relationship between them.
With this in mind your franchise agreement will need to be translated and precisely adjusted to Polish law or drafted from the very beginning.
Operations manual
Operations Manual should fully introduce a franchise concept. As a detailed explanation of the system it is day-to-day reference tool for use by the franchisee and his employees when running the business. It reinforces the terms and conditions of the franchise agreement, provides the franchisees with information about the working methods and practices, and sets out the way in which the franchise must be operated. It is also training tool for franchisors when training franchisees and for franchisees when training employees. As the business is growing the manual must be regularly updated. Operations manual is an essential instruction for franchisees and practical control tool for franchisors.
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