You really should consult an attorney in your area that deals with transactions like this. It would be very unwise for any attorney, myself included, to comment on a few sentences without a review of the entire contract. Good luck with this matter.

I agree with you that it is important make sure you have some kind of recourse and protection in the event of nonpayment. I cannot say whether that will suffice in your circumstances. There are a few clauses you will need to make sure get included. You should have an attorney review the agreement. I draft business contracts and will be happy to help. Regards,

I have previously represented a number of franchise owners. I agree with my colleagues. You really should have an attorney who knows franchise and business issues review the contract. There are key things that should be included to protect your interest. It's better to spend the money on an attorney now to make sure you are protected, rather than spend many times as much later on if there is a dispute. We offer a free initial consultation and would be hpapy to speak with you about the situation.

Rather than a clause allowing you to take the franchise back - and would you really want to jump back into the franchise again - you should consider some other options. A better course of action is to get a lien on real property or other assets you can attach is there is a default on the note. Consult with a franchise attorney for more details.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

www.franchisefoundations.com