This form provides that a certain company is the owner of proprietary rights and interests in and to the "ABC" name and other trademarks which the company may authorize or direct the franchisee to use in connection with the franchised business. The company grants to the franchisee a license to use and display certain trademarks for the operation of one restaurant at the location described in the terms of the agreement.
Arizona Unit Franchise Agreement
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Unit franchising is where a Master Franchisee grants the exclusive Franchise Rights to use a brand name and proprietary information to re-sell its goods and services in either a defined area or within that defined area.
The Franchise Agreement It needs to fully prepare the franchisee to operate from day one. Including automatic or discretionary rights of renewal and the ability to renegotiate terms. Outlining exclusive territory rights, obligations and ability to dilute territory if obligations are not met.
Franchise agreements vary between different franchises, but these seven areas should be addressed in every franchise agreement. Use of Trademarks. Location of the Franchise. Term of the Franchise. Franchisee's Fees and Other Payments. Obligations and Duties of the Franchisor. Restriction on Goods and Services Offered.
The key elements of a franchise agreement generally include: Territory rights. ... Minimum performance standards. ... Franchisors services requirements. ... Franchisee payments. ... Trademark use. ... Advertising standards. ... Exclusivity clause. ... Insurance requirements.
The franchisor's business background, ethics and any past bankruptcies. Fees and financial arrangements. Any restrictions on how the franchisee can source products and services, or what they are allowed to sell. A list of current and past franchisees.
With a proper grasp of the three conditions of a franchise agreement ? terms, rights and obligations, and termination ? parties can confidently enter into a full franchising agreement or partnership, knowing their individual and collective interests are protected by a legally binding contract.
The three conditions of a franchise agreement are the payment of initial fees and ongoing royalties, adherence to the franchisor's system and standards, and the grant of territorial exclusivity. A franchise contract typically lasts for 5 to 10 years.
A typical franchise agreement should include clauses pertaining to location, duration, operation, fees, and use of intellectual property.
