mdi-chevron-left Go Back

Franchise Agreement

A legal contract in which a well-established business consents to provide its brand, operational model, and required support to another party to set up and run a similar business in exchange for a fee and some share of the income generated.

Business Glossary provided by
The franchise agreement governs the franchisor-franchisee relationship, detailing the rights and obligations associated with the use of trademarks, operational systems, and other proprietary information. For a franchise fee and ongoing royalties, the franchisor supports the franchisee through training, marketing, product supply, and more. The contract mandates adherence to certain operational standards, protocols, and compliance requirements.
View Glossary Writing a Business Plan?

Starting or Running a Business?

Generate a business plan in minutes.

Get Started
Business Owner