Opening a Franchise

             For Elliott to purchase Groovy Smoothy, it cannot be predictable on how much money he will make. This is because; he will come up with his own business techniques that will either make the earnings increase or even lower. Since Elliot has already identified the Franchise, if he decided to go ahead with this business venture, the next legal step is to sign an agreement with Groovy Smoothy. This agreement will comprise of the terms and conditions governing the purchase of the franchise; which involves the form of payment (Barkoff et al, 2008). After the agreement has been signed, then Elliot can go ahead and with obtaining the necessary permits. This must be done in compliance with the legal authorities.

            The laws governing franchise require franchisor to provide all the necessary information to the franchisee. For instance, the franchise agreement is a document that specifies the terms of purchase including overall relationship. Therefore it is the role of the franchisee to review the agreement so closely being guided by a professional advisor before final decisions are made. If the contract requires Elliot to make payments timely or else the agreement can be terminated, in Elliot’s failure to make payment, then Groovy Smoothy is right to terminate the franchise agreement. This is because the agreement requires Elliot to clearly review all the terms in the agreement (Barkoff et al, 2008). It is in that period that the franchisee is free to ask for changes to be made about terms of franchise. Therefore, his failure to raise any concern about the terms governing the franchise means he was satisfied with all the terms, thus he was required to meet the requirements of that specific agreement. Therefore, Groovy Smoothy will be proper in that case.

References

Barkoff, R. M., Selden, A. C., & American Bar Association. (2008). Fundamentals of franchising. Chicago: American Bar Association, Forum on Franchising.