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Making a Franchise Agreement
If you're about to embark on the exciting journey of buying a franchise, or you own the rights to an enterprise, you can use a Franchise Agreement to define your new business relationship. A Franchise Agreement allows both parties to agree to the terms regarding the brand, system, and expertise to be franchised.
A franchise allows a third party, the franchisee, to operate a business using the name and business systems of the franchisor, the business owner, for a specified time period. An ongoing franchise fee is usually paid to the franchisor, either as a set dollar amount paid on a regular basis or as a percentage of gross revenue.
Conditions mentioned within a franchise agreement usually fall into three categories. These categories are related to franchise ownership, financial obligations, and operation of the franchise. Topics covered within these three categories can include the length of the agreement, initial and ongoing fees, and business operations.
The Rocket Lawyer Franchise Agreement sets the conditions of the use of the franchise system, including the term length, franchise fee and royalties, as well as a number of other aspects, like developmental assistance, training, and marketing. You can use the Franchise Agreement if:
A Franchise Agreement can have a term of anywhere between 10-20 years. That's a long time. If a franchisee needs to get out of a contract, the franchisee may want to try and negotiate with the franchisor to see if the franchisor will buy out the franchisee or allow the franchisee to sell the franchise. If negotiations are not successful, ask a lawyer about other options for exiting a franchise.
A franchise lawyer can help you navigate preliminary processes for starting a franchise. They can review any necessary documents, advise you on the best course of action regarding setting up your franchise, and answer any remaining questions you may have.