Tuesday, April 21, 2009

Overview Franchise Agreement

A franchise agreement is the legal document that binds the franchisor and franchisee together below the law. This document explains what the franchisor right and expects from the franchisee in running the business.

The agreement is designed to assure that each parties, franchisor and franchisee are treated equitably. The expectations must be clear in franchise agreement.

The franchise agreement is important part of franchising. It is the essential contract signed by the franchisee and the franchisor that formalizes and specifies the terms of the business issue.

The franchise agreement is the mutual understanding document of the franchisee--franchisor relationship. It is this document that is legally binding on both parties, laying out the rights and obligations of each.

Content of Franchise Agreement

The agreement will cover the obligations of the franchisor and franchisee regarding operating the business; cost of every service by franchisor, what and what isnot franchise support, the training and operational support the franchiser will provide ; your territory and any exclusivity; the initial duration of the franchise and any renewal rights; how much you must invest; how you must deal with things such as trademarks, patents and signs; what royalties and service fees you will pay; tax issues; what happens if you should want to sell or transfer the franchise; advertising policies; franchisee termination issues; settlement of disputes; by the company, operating practices, cancellation, and attorney fees.

Here sample of Franchise Agreement
1. Restaurant Franchise Agreement
2. General Franchise Agreement

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