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 Plannit.ai
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.
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