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Franchise Agreement Basics

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. An entrepreneur looking for new opportunities can limit the risk associated with starting a new business by buying a franchise. A Franchise Agreement can be used to establish the relationship between the owner of the business model being franchised and the person or business seeking to use that model.

Use the Franchise Agreement document if:

  • You own the rights to a business and are approving a new franchise.
  • You're about to begin operating a new franchise.

A Franchise Agreement allows both parties to agree to the terms regarding the brand, system, and expertise to be franchised. This 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.

Other names for this document: Franchise Contract, Franchise Agreement Form, Franchising Agreement

Sample Franchise Agreement

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