Elements of a Franchise Agreement

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Elements of a Franchise Agreement
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• The franchise agreement is a legal document
  between a franchisor and franchisee to open and
  operate a franchise unit. Franchise agreements
  greatly vary based on the franchisor.
  (BBGV122021)
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• Franchisor Franchisee Details
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• Before entering into the franchise agreement, the
  details of the franchisor and franchisee are
  entered. In most cases, the franchise agreement
  executes between two companies or legal
  entities. 
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• Franchise Fee Consideration
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• Terms of the franchise fee, deposit, royalties,
  advertising fees, and other charges are discussed
  in length in a separate section. 
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• Business Operations
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• The biggest benefit of a franchise is that the
  franchisor would help with the operation of the
  franchise unit based on their past experience and
  expertise.
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• Advertising and Brand Promotion
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• The responsibility of the franchisor towards
  promotional spending for franchisees and the
  requirement of the franchisee to contribute to
  brand building activities is mentioned clearly in
  the franchise agreement.
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• Training, Supervision, and Support
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• Franchisors provide the necessary training,
  supervision, and support to franchisee units for
  a certain amount of time or on a regular basis. 
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• Use of Trademark Intellectual Property
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• One of the most important elements in a franchise
  agreement is the right to use of trademarks of
  the franchisor. The franchisor must have
  registered the trademark and have exclusive
  rights for use of a trademark. 
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• Term of Agreement
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• The franchise agreement must clearly state the
  terms of the agreement, length of the agreement,
  provision for renewal, and the effect of
  termination of the franchise agreement.
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• Transfer or Assignment of Franchise
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• Most franchise agreements explicitly require the
  franchisee to obtain the approval of the
  franchisor for transfer or assignment of interest
  in the franchise unit. 
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• Termination of Franchise Agreement
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• The franchise agreement contains detailed
  provisions for termination of the agreement in
  case of failure of either party in the agreement
  to perform as per the agreement. 
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• Governing Law and Dispute Resolution
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• It is a good practice to mention the governing
  laws and jurisdiction for the operation of the
  franchise agreement. 
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• Do you need help?
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• Do you also want to have a perfect Franchise
  Agreement? Do you need our help? You too can take
  a step forward. Contact us for more information.
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• Contact Us
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• 450, Mastermind One - IT Park, Royal Palms, Aarey
  Colony, Goregaon (E), Mumbai, Maharashtra 400065.
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• Ph 91 92220 86563
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