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Information
Maintenance of Required Equipment and Franchise Agreement Clauses
Submitted: 2007-01-17 11:42:31
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A franchisor must insure that each franchised outlet maintains the equipment used in the business operation. To make sure that the services and products maintain consistency and quality the equipment must also be in top notched working order.
In our franchise agreement we decided to add a clause, which addressed this very issue. You see, I believe that not only is this important enough to have in the confidential operations manual, I believe it is sold vitally important to the operation of the franchised business that it must be addressed in the initial franchise agreement, before the commencement of the franchised business. Below is the clause.
3.18.2 Maintenance of Required Equipment
Maintenance and repair of Franchisee’s car wash truck/unit(s), washing equipment, credit card machine, car phone, pager, fax machine and computer system are Franchisee’s sole responsibility. Franchisee agrees to keep all tangible items used in the Franchised Business in excellent repair or fix any item, which is worn, breaks, becomes obsolete or mechanically impaired. All items replaced or repaired shall be done so with strict accordance to the standards, specifications and procedures outlines in the loaned copy of the Confidential Operations Manual.
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Since I am not an attorney, you may wish to contact the franchise attorney and ask them if such a clause in your franchise agreement makes sense for your franchising company. I hope you will consider this in 2006.
Lance Winslow
Article source: Expert Articles
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