What is a Franchise Agreement?
A franchise agreement is a legal document between a franchisor and franchisee. When buying a franchise, the franchise agreement will constitute your primary agreement with the franchisor. Franchise Agreements govern the scope and nature of your franchise relationship and address rights and obligations such as:
- Franchise fees;
- Protected Territory;
- Franchise term;
- Approved products and services;
- Reporting sales; and
- Future transfer and sale.
The franchise agreement also defines the obligations and support owed by the franchisor to its franchisees. Franchise agreements are critical and should be reviewed with a franchise lawyer before buying or investing in a franchise.
If you are buying a franchise, learn more about a step-by-step process for buying a franchise and visit our complimentary Franchisee University Video Series.
- Take Your Business from Local Success to National Franchise with The 90 Day Franchise Launch Program
- An Entrepreneurs Guide to Purchasing a Business or Franchise
- ENDWISE: The Guide to Selling Your Business with Peace of Mind
- The New York and New Jersey Partnership Dispute Guide
- Franchise Counsel Program