The Franchise Agreement is the legal document that governs the franchisee/franchisor relationship. There is no standard format for a Franchise Agreement because the terms and conditions and operations vary from franchise to franchise and industry to industry. In general, Franchise Agreements cover the following main provisions:
1. Training and/or ongoing support provided by the franchisor;
2. Assigned territory;
3. Duration of the franchise agreement;
4. Franchise fee and total anticipated investment;
5. Trademark, patent, and signage use;
6. Royalties and other fees you are expected to pay;
7. Advertising;
8. Operating protocol;
9. Renewal rights and franchisee termination/cancellation policies;
10. Resale rights.
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