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What is a Franchise Agreement?

It is defined as a contract that is a legal binding between a franchisor and a franchisee.

Basic information

Many franchise owners are daunted by the franchise agreement, but the contract is never one-sided just because the franchisor produces or drafts the document i.e. franchise agreement. A franchise agreement describes the role every party to it in the agreement. It tries to cover every situation between the parties and in the case of dispute arise, how that issue will be resolved.

1. Brand Recognition

The name or brand recognition may be the best reason for buying into a franchise or entering into the franchise agreement.

2. Managerial Assistance

When one is doing business with a respectable and reliable and trust worthy franchise, it's in one's interests for that person will succeed.

3. Quality Control

There is a quality assurance for all kinds of goods dealt. Being a franchise ensures that one will rarely have to worry about the quality or consistency of products or services.

4. Higher Success Rates

The success rate for franchise-owned businesses is considerably better than that of many other independent businesses.

5. Opportunity for Growth

Many franchisees operate out in multiple locations. That kind of growth opportunity is hardly found with independent start-ups.

6. Operating Practices

The processes are often spelled out in the franchise agreement. As it is already full fledge working and set up.

7. Costs

The franchise agreement explains all the costs involved in acquiring the franchise. It will explain the fees and royalties for which the franchise operator is responsible.

Term and renewal

The time duration for the initial term of a franchise agreement is clearly mentioned in the clause of the agreement. The clause offers the opportunity for the franchise to continue with the franchise agreement or not and inform the same within specified time.

Franchise Agreement Procedure

Approx. 2 to 3 WORKING DAYS required to deliver the franchise agreement to you after the required information is received.

Approx. 2 WORKING DAYS if any modification to be carried out.

Working Process

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Work Completed

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