Completing the Deal

Closing the Deal
The negotiations to arrive at agreement between the two parties may have been intense, or they may have been easy. Generally both parties will be happy with what has been negotiated and now it is time to arrange closing of the deal. Closing the deal will involve all documentation to be drawn up and money to be exchanged at the right time.

Restraint of Trade
Restraint of trade is an important part of the agreement. Restraint is a condition on the seller not to set up a franchise again in the same type of operation within a particular geographical area. It usually relates to not being able to set up a similar franchise within five or ten kilometres of the area from where the franchise was being sold.

Sometimes it is also necessary to secure restraint from managers and other key employees of the seller to protect the buyer against any loss of customers in the period of sale. If it is a company, there may be a need to secure restraints of sale from the directors or shareholders of the selling company.

Some restraints of trade may fin...