Buying a franchise in Jamaica—what key clauses should I insist on before I sign?

Question

I’m about to pay the franchise fee and sign the agreement for a food outlet in Kingston. The franchisor is asking for strict non-compete terms and a large termination fee. What clauses should I negotiate or have reviewed to protect me if sales are lower than projected?

Vanguard Law · Accepted Answer

Congratulations on this venture!

Negotiating is heavily dependent on your specific Franchise Agreement's current terms and business/operational structure.

However here are some standard considerations below:

Low Sales Relief Mechanics: such as allowing royalties/marketing contributions to be reduced, deffered or even temporarily waived if monthly gross sales are lower for certain months than projected.

Exit Clauses: Negotiate the calculation of the termination fee, shouldn't be a penalty. You may even negotiate an assignment right if sales are low and you want to be able to sell.

Qualify the Non-Compete: such as geographic limits, branding limits and/or even a waiver due to low sales.

This is not legal advice but informational purposes only.

Buying a franchise in Jamaica—what key clauses should I insist on before I sign?

คำตอบจากทนายความ

Vanguard Law

ต้องการความช่วยเหลือทางกฎหมายส่วนบุคคล?

ผู้เชี่ยวชาญทางกฎหมายที่เกี่ยวข้อง