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Beware of marketing group fine print.

Be sure to read the fine print of any marketing group agreement. Check out how ling you are locked in and the penalties for leaving the group. I saw one newsagency marketing group member agreement the other day with this clause:

For a period of one (1) year after expiry or termination of this Agreement the Franchisee undertakes not by itself or by its Directors or its Shareholders either directly or indirectly to join with or take membership of any group marketing/buying venture competitive with or similar to … provided that the Franchisee may conduct a newsagency business without restriction.

Okay, so the landlord requires the newsagent to be in a group. The newsagent joins XXX group. The newsagent decides, after a year or so, to move to another group and resigns. XXX requires the newsagent to sit out from any marketing group for a year. The newsagent cannot breach the lease requirement that they are in a marketing group and must stay with XXX. Catch-22.

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