Licensing franchising varies from one business to the other. This typically means that there is no universally accepted uniform format of a license. Each license in any particular business is different from the other with special features each detailing the special circumstances of the business. It is a common widely known contract principle that any form of agreement should be read and understood well before parties can append their signatures.
This principle also applies in the law licensing franchising. All licenses should be interpreted by experts to the parties in a language best understood by them before they can sign it. Any license which is signed binds both the parties to the agreement irrespective of the issue of whether any or all of the parties understood it. Hence there is no room for an innocent party.
Similarly, the license in question should be very clear to all the parties, all the terms and conditions should expressly be outlined so that each party should understand their obligations and the obligations of the other party under the license. The license should be free from ambiguities. This implies that all the terms should be very clear without leaving any form of doubt. Licensing franchising needs clarity between both parties.
Any form of boundaries that may be involving the parties should be very clear, this is necessary since it avoids trespassing of one party to the others territory. It should also specifically state the amount to be paid by each part, stating also the date of such payment. It should also be able to state the penalty that is to be imposed suppose the other part fails or absconds to perform his duty under the contract. It is also necessary for the license to state the specific date of which it officially begin to operate and the specific date on which it expires.
The Licensing franchising should state whether it shall be renewed automatically after it expires or weather that shall be the end of the contract. There are certain characteristics that should be considered when coming up with a license. The following are some of them;
• Whether the license involves both parties. This implies that there are certain licenses that govern both the parties while there are those that govern only one person.
• Whether the license can permission the issuance of another license. One is required to inquire whether the issued license can validate and authorize any issue that is not covered under it
• Whether the license has extremes. This demands one to know whether it forbids some activities or not
• It also requires one to know who the applicant of the license will be.
• One is expected to know when the life of the license begins and when it stops. This is necessary since a person is able to understand when his duties and obligations in the license begins and stops.
• It is also necessary to understanding who can execute the license for redress in case their have been any breach among the parties.
• It is also of most importance for one to know when he can terminate the relationship in the license for example when there is fundamental breach of the agreement. .
