Franchise agreements are legal bindings applicable to the franchisee and the franchiser in order to decide the obligations and responsibilities for both the parties. Such an agreement is always obtained in the form of a written copy and can never be an oral commitment.
A franchise agreement covers the franchise terms and laws. It contains all the information about the franchiser (the company) and franchisee, business operating regulations and ethical standards to maintain the business.
Types of the Franchise Agreements:
- Single- Unit Franchise Agreement
- Multiple- Unit Franchise Agreement
- Area Development Franchise Agreement
- Master Franchise Agreement, etc
A franchise agreement should be based on underneath mentioned attributes:
- Date on which the franchise agreement is approved by both the parties.
- Agreement Number assigned by the Solicitor.
- Type of the franchise agreement.
- Contact information of the franchisee, including personal information and location for the business.
- Contact details of the franchiser, including name, address, phone number, etc.
- All the term & conditions for the parties, including, material/ product details, promotional support, selling strategies and payment terms.
- Signature of the franchisee and the franchiser in order to accept the above mentioned covenants.
- Signature and address of the lawyer.
Both the parties can demand for a copy of this agreement, whereas the lawyer will keep the original agreement.
Category: Franchise Agreements