If your business is looking to explore opportunities to franchise, this template is for you!
The franchise agreement is vital to the franchise relationship, which is based on a contract granting the “franchisee” the right to sell or distribute goods or services under a marketing plan prescribed almost exclusively by the “franchisor.” The franchisor generally retains full ownership of the marketing plan and subsequent intellectual property rights associated with it. A major purpose of this agreement is to ensure that the franchisee takes all steps necessary to protect and enhance the goodwill that the franchisor and its other franchisees have invested and developed in the marketing plan and business model. Importantly, this agreement also prescribes the formula for the franchise fee and royalty payments, which are compensation for the franchisee’s use of the marketing plan, intellectual property, and associated legal rights.
IMPORTANT: Please consult a local attorney and remove any commentary or highlights before executing!
Last Update May 2021
May 1, 2021