Many folks really wish to own a business of their own, but do not quite even know where to start. Well one could consider buying a franchise as a way to become their own boss and pursue their happiness and American Dream thru a business of their own.

Most franchise agreements are for 5-10 years and have automatic renewal up to let’s say twenty. This is also called the term of the franchise. Many people believe the execution of a franchise is once the term has ended and all the duties and responsibilities have taken place. But this is incorrect because the execution takes place upon signing, not when it’s completed.

If we are to say that a franchise agreement is only executed once all terms and conditions on both sides have completed all duties, then the actual execution wouldn’t be until three years after termination, cancellation, recession or expiration, due to the excellent possibility that the contract contains covenants not to compete as most do. So execution takes place during signing and exchange of legal tender.

Automatic renewal of the term of the franchise is normal in franchise agreements and that means as long as you do not notify the franchisor that you plan on terminating the contract in advance of the end of the term in writing then it automatically renews and thus you go for another term and at that point are responsible for signing the then current franchise agreement for the next term or future period. Consider all this in 2006.

“Lance Winslow” – Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/