Franchise Agreement
Get Franchise Agreement essential facts below. View Videos or join the Franchise Agreement discussion. Add Franchise Agreement to your Like2do.com topic list for future reference or share this resource on social media.
Franchise Agreement

A Franchise Agreement is a legal, binding contract between a franchisor and franchisee. In the United States franchise agreements are enforced at the State level.

Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule.[1] The Franchise Rule requires a franchisee be supplied a Franchise Disclosure Document (FDD ) (originally called Uniform Franchise Offering Circular (UFOC )) prior to signing a franchise agreement, a minimum of fourteen days before signing a franchise agreement.[2]

Once the Federal ten-day waiting period has passed, the Franchise Agreement becomes a State level jurisdiction document. Each state has unique laws regarding franchise agreements.

A franchise agreement contents can vary significantly in content depending upon the franchise system, the state jurisdiction of the franchisor, franchisee, and arbitrator.

It overall provides the investor with a product, a branded name and recognition, and a support system.

A typical franchise agreement contains

  • Franchise Disclosure Document (FDD)
  • Disclosures required by state laws
  • Parties defined in the agreement
  • Recitals, such as Ownership of System, and Objectives of Parties
  • Definitions, such as
Agreement, Territory Area, Area Licensee, Authorized deductions, Gross Receipts, License Network, The System Manual, Trademarks, Start Date, Trade name, Termination, Transfer of license.
  • Licensed Rights, such as
Territory, Rights Reserved, Term and Renewal, Minimum Performance Standard
  • Franchisors Services, such as
Administration, Collections and Billing, Consultation, Marketing, Manual, Training
  • Franchisee Payments, such as
Initial Franchise Fee, Training Fees, Marketing Fund, Royalties, Renewal fee, and Transfer fee
  • Franchisee Obligations, such as
Use of Trademarks, Financial Information, Insurance, Financial and Legal responsibility
  • Relationship of Parties, such as
Confidentiality, Indemnification, Non-Compete clauses
  • Transfer of License, such as
Consent of franchisor, Termination of license, Termination by licensee
  • Other provisions
  • Governing law
  • Amendments
  • Waivers
  • Arbitration
  • Severability

See also

References

Terms and conditions of franchise agreement

  1. ^ "Consumer Information" (PDF). ftc.gov. Retrieved 2015. 
  2. ^ "Buying a Franchise: A Consumer Guide". ftc.gov. Retrieved 2015. 

External links


  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.

Franchise_agreement
 



 

Top US Cities

Like2do.com was developed using defaultLogic.com's knowledge management platform. It allows users to manage learning and research. Visit defaultLogic's other partner sites below:
PopFlock.com : Music Genres | Musicians | Musical Instruments | Music Industry
NCR Works : Retail Banking | Restaurant Industry | Retail Industry | Hospitality Industry