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The franchise agreement is a legally binding contract between the franchisor and the franchisee. Signing the agreement allows both parties to do business together.
The purpose of the franchise agreement is to outline the obligations of both the franchisee and franchisor. The agreement is standard to all franchisees in the network. By having all franchisees sign the same document, the franchisor is ensuring consistency throughout their network.
The purpose of the franchise agreement is to:
What the franchise agreement covers
Though each franchise agreement varies depending on the nature of the business, there are key areas they all cover. The agreement should cover:
A franchisor should promise the franchisee the following:
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