Renee Whitlock

Here's what you're agreeing to. You'd rent the kitchen for 3 years at $2,400 a month, going up 4% each year. You'd pay for all repairs inside the space, including the equipment that's already there. You can't leave early without paying the rest of the lease, and you'd personally guarantee it, so your own savings are on the line if the bakery closes.

THE CLAUSES, SORTED

NORMAL

• Rent due on the 1st, with a 5-day grace period.
• Security deposit of 2 months' rent.
• You need business insurance with the landlord named on it.
• 4% yearly rent increase. This is common.

ASK ABOUT

1. Section 7, repairs. "Tenant is responsible for all repairs and maintenance." Does that include the walk-in cooler and the oven that came with the space? If the oven is 15 years old, you could be paying to replace their equipment.
2. Section 9, hours. "Use limited to normal business hours." Bakers start at 3 a.m. Ask for that in writing.
3. Section 12, grease trap. Who pays for cleaning, and how often is it required?

PUSH BACK

1. Section 15, personal guarantee. You'd owe up to the full 3 years of rent, about $90,000, even if the bakery closes. Ask to limit it to 6 or 12 months of rent.
2. Section 18, early exit. There's no way out. Ask for an option to leave after year 1 with 3 months' notice and a fee.
3. Section 21, the landlord can move you to "a similar space" in the building. Your equipment is installed. Ask to remove this, or have them pay all moving costs.

QUESTIONS TO SEND THE LANDLORD

1. "Can you confirm in writing that the oven and walk-in cooler are your responsibility to replace?"
2. "Can we change Section 9 so I can work from 3 a.m.?"
3. "Would you limit the personal guarantee to 12 months of rent?"
4. "Would you add an option to end the lease after year 1?"
5. "Can we remove Section 21, or add that you'll pay for moving and reinstalling equipment?"

I'm not a lawyer, and this isn't legal advice. For a lease with a personal guarantee, a one-hour review by a local real estate lawyer is worth it.

— Renee

Here's what you're agreeing to. You'd pay $35,000 up front for the right to run one store under their name for 10 years. Then you'd pay 6% of your sales every month, plus 2% for their marketing, no matter whether you make a profit. You'd have to buy yogurt and supplies from them or their chosen suppliers, follow their rules on almost everything, and you couldn't open a similar business within 10 miles for 2 years after you leave.

THE CLAUSES, SORTED

NORMAL

• 10-year term with an option to renew. Common.
• Required training before you open.
• Their brand rules for the store's look and menu.
• Insurance requirements.

ASK ABOUT

1. Section 6, required remodels. They can make you remodel every 5 years "at Franchisee's expense." Ask what the last remodel cost other owners.
2. Section 9, suppliers. You must buy from approved suppliers. Ask if they earn money from those suppliers, and how prices compare to the market.
3. Section 11, territory. You get a 1-mile area. Ask whether they can sell online or open a kiosk inside that mile.
4. Section 14, sales reports. They can audit you. Ask who pays for the audit.

PUSH BACK

1. Section 19, ending early. If you close early, you owe the 6% royalty on what they estimate you would have earned for the rest of the 10 years. That could be over $100,000. Ask to cap it.
2. Section 21, the non-compete. 10 miles and 2 years, after you leave, for any "frozen dessert" business. Ask to narrow it to frozen yogurt and 3 miles.

QUESTIONS FOR THE MEETING

1. "What did the last required remodel cost?"
2. "How many stores closed in the last 3 years, and why?"
3. "Can I talk to 3 current owners I choose from your list?"
4. "Would you cap the early-exit fees?"

I'm not a lawyer, and this isn't legal advice. A franchise lawyer will also review the disclosure document (FDD), which tells you a lot about past closures.

— Renee

Here's what you're agreeing to. You'd edit videos for the agency for 6 months, at $65 an hour, billed monthly. They'd pay 45 days after each invoice. Everything you make for them, including files and project templates you build, would belong to them. You couldn't work directly for any of their clients for a year after the contract ends, and they could end the contract with 7 days' notice, while you'd need to give 30.

THE CLAUSES, SORTED

NORMAL

• Hourly rate and monthly invoicing.
• Confidentiality about clients' projects.
• You're a contractor, not an employee. You handle your own taxes.
• They own the finished videos. Common for agency work.

ASK ABOUT

1. Section 3, revisions. "Reasonable revisions" are included. Ask how many. Two rounds is common.
2. Section 4, hours. There's no minimum. Ask whether they expect about 30 hours a week, as they said in the interview, and if they'll put it in writing.
3. Section 8, equipment. You use your own computer and software. Is there a software allowance?

PUSH BACK

1. Section 5, payment in 45 days. That's a long wait. Ask for 15 days, or 30 at the most.
2. Section 6, ownership. It includes "tools, templates and methods." Your own templates and presets, built before this job, should stay yours. Ask to add: "except materials the contractor made before this agreement."
3. Section 11, non-solicitation. One year, and it covers anyone who was their client, even ones you never worked with. Ask to limit it to clients you actually worked on, for 6 months.
4. Section 12, ending the contract. They give 7 days, you give 30. Ask for the same notice both ways.

SUGGESTED REPLY

"Thanks for sending this. I'm excited to work together. A few small changes: payment in 30 days, keeping my existing templates as my own, limiting Section 11 to clients I work on for 6 months, and the same notice period for both of us. Happy to talk through any of these."

I'm not a lawyer, and this isn't legal advice.

— Renee