Franchise Agreement Template

Taylah Hoad August 28, 2021 Business

Sample Franchise Agreement Template
Sample Franchise Agreement Template

Franchising is one of the most efficient and proven paths for business expansion. In order to develop and build brands in other regions or even in other countries, not a few companies have finally chosen the franchising method.

To realize this business relationship, it is necessary to describe the guidelines that are specifically regulated through a franchise agreement. This agreement document serves to regulate the relationship between the parties involved, which are referred to franchisor and franchisee.

What Is A Franchise Agreement?

Franchise agreement is a business document that has a legally binding in nature, produce by the franchisor and intended for the franchisee that contains various information related to certain terms as well as conditions. Broadly speaking, this agreement also regulates the privileges and also responsibilities that must be followed up by both parties.

Typically, the franchisor will allocate special rights to the franchisee in terms of the brand uses along with the proprietary system to operate the business. Prior to signing, all information accommodated in the agreement document must be understood by the franchisee. This includes the details that contain the requirements and limitations that must be obeyed by the franchisee.

How Do You Write A Franchise Agreement?

The trend of the franchise agreement is certainly bring a lot of benefits to the owner. It`s really reasonable, because as a franchisee, we only take advantage of businesses that already have a reputation and have an established operating system.

Even though in drafting the contract have no substantial contribution, the franchisee is still advised to understand the process and detailed content of the agreement. Information that is usually included in a franchise agreement, includes:

1. Information About the Parties. Identification of each party involved in the agreement where the full name and address must be mentioned in this section.

2. Franchise Description. This section contains an explanation of the agreement subject. As the owner, you must provide a statement about granting permission to use your brand name in the business operated by the franchisee. On the other hand, a statement agreeing to pay a sum of money and comply with the terms put forward by the franchisor must also be made by the franchisee.

3. Franchise Fee. This section describes in detail everything related to franchise fees. Starting from how much must be paid and how it will be paid, and up to how many times the payment will be made.

4. Rights and Responsibilities. As long as the contract is valid, what are the rights and responsibilities that must be carried out by each party are written in this section.

5. Signature. After all parties understand and agree to the contents of the agreement document, then the signing is carried out.

Alternate Names

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