The tax exemption cannot be understood like immediately synonymous of good business or absolute guarantee of success. The tax exemption is not in itself a business, like we have exposed previously, but a special system of commercial association that adapts to almost all the sectors of activity. For that reason it is necessary, as much on the part of the franchiser at the time of selecting to his franchise-holders, like on the part of the franchise-holder when choosing the tax exemption, to make a careful selection through a process of analysis. For it is necessary to know accurately which are the obligations of both.

21.1. Obligations of the franchiser

• To have a mark, product or service properly registered and introduced in the successfully proven market and that can easily be transmissible.
• To know how to transmit to its franchise-holders know how of the tax exemption.
• To count on the infrastructure sufficient to provide the service adapted to the needs.
• To be advised the last advances permanently, as much at technical level as of marketing.
• To know how to evaluate the different geographic zones.
• Financial standing and professional solution.
• To have pilot stores, like minimum three, that demonstrate the yield of the tax exemption to the franchise-holder.
• To have corresponding package or operative manual, that ensures the commercial and economic success of the transaction.
• To provide zone exclusive feature.
• That it facilitates, without no reluctance, the complete list of his franchise-holders.
• That its yield does not depend exclusively on the canons of adhesion or the initial sale of machinery.
• That the activity that it develops locates in a market in expansion and lasting and is not based on a temporary demand, fleeting fashion or quotes to the loss.
• That its concept adapts totally to the demand of target ample.
• That it carries out a careful selection of his franchise-holders and operates a growth fit to his means.
• That it dedicates powerful efforts to increase the notoriety of his mark.
• That it guarantees to his franchise-holders permanent services of pursuit, internal communication, investigation, support and marketing.
• That its contract respects the balance between the parts and defines clearly the game rules.
• And, finally, that assumes in all the lands a total commitment with its franchise-holders.

21.2. Obligations of the franchise-holder

• To have the suitable premises to develop the commercial activity.
• Economic and professional solution.
• To have the human equipment.
• Capacity of enthusiasm and gives against the experience that, following the cases, arrives not to be necessary.
• To respect the directives marked by the franchiser and that were picked up at the time in the contract and package.
• To understand perfectly the spirit of the system of franchise and to adapt totally to the philosophy and the corporative identity of the same, assuming a personal commitment as much with the norms as with the discipline.
• To follow the commercial policy of the network, common to all the franchise-holders.
• Installment of the economic amounts agreed in place and time.
• To have the organization necessary to serve, as much to the own activity of the tax exemption like the demanded thing by the franchiser and that at the time was gathered in the manual of the franchise-holder.
• That it dedicates, like the clear franchiser, efforts to increase the notoriety of the mark franchise-holder.
• That their relations with the franchiser are based on the honesty of their actions and a treatment of mutual confidence.
• And, finally, to contribute to the success of the network studying and jointly solving with the franchiser the problems that can.