The franchise licensing agreement is a legal document that puts the marriage of the franchise partners in motion but that doesn’t mean it has to be harsh.

It is the nature of the beast that the franchise licensing agreement must live up to expectations as a major watershed document in the franchise development process. By the time that hopeful franchise owner sits down at the table to sign that franchise licensing agreement, a great deal of water has gone under the bridge.  There will be meetings, phone calls, background checks by the franchise company and by the franchise applicant and exchange of franchise disclosure documents big enough to choke a horse.

As the franchising company, the responsibility for authoring the franchise licensing agreement falls to you. Smart companies that build a franchise empire do not farm out this chore. Put some thought and care into how that franchise licensing agreement looks, smells and feels because it is important that is works on several levels.

The obvious level that the franchise agreement must work is as a legally binding document that cements the relationship between you and that new franchise owner.  By legally binding, we are not kidding because this document will have to stand up and do its stuff if push comes to shove in a legal way. So you do have to put some teeth into the franchise licensing agreement so that it protects you.  But keep in mind that it takes two to tango when you are building a franchise relationship and work with representatives from the other end of the table so both you and the franchise owner feel that the franchise licensing agreement is fair to everyone making the deal.

Let the franchise licensing agreement kick off a productive long term business relationship.

Keep in mind also that when you get up from signing that franchise licensing agreement with a new franchise owner, you will have started a relationship that should and could result in great wealth for everyone. You want that franchise owner to charge out of that room with moxie and enthusiasm to conquer his or her market in the name of your company.

There is no reason to make the language of the franchise licensing agreement hostile, stale or unpleasant.  Keep in mind that you are in the position of selling that franchise to the franchise owner so that makes him or her a customer.  Never miss a chance to build that customer relationship.  By making the franchise licensing agreement an upbeat and encouraging document, you are even using a boring old legal document like the franchise licensing agreement part of your bold marketing plan that will result in an explosive growth in your franchising empire. That is smart use of the franchise licensing agreement to be sure.