The subfranchisor grants to the subfranchisee a sublicense to use and display certain trademarks in connection with the operation of one restaurant at the location described in the agreement.
Maine Subfranchise Agreement
Category:
State:
Multi-State
Control #:
US-2-03-3-STP
Format:
Word;
Rich Text
Instant download
Description
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How to fill out Subfranchise Agreement?
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FAQ
To prove timely delivery of the Franchise Disclosure Document (FDD), Item 23 requires franchisors to obtain a signed receipt for the FDD furnished to each prospective franchisee.
A disclosure document must include information about the number of existing and former franchisees and contact details for them. It is important for potential franchisees to speak to current and former franchisees to help inform their decision about whether to buy a franchise.
Commonalities. As previously described, sub-franchising is the term used to describe the relationship between a master franchisee and the unit sub-franchisee. This right usually arises from the rights granted in a master franchise agreement, but it is not the rule.
Another important difference is that master franchisees normally have the right to collect and receive the franchise fees from sub-franchisees, and the duty to in turn pay a portion of such fees to the franchisor, while sub-franchisees are obliged to pay such relevant fees to the master franchisee.
How is a Franchise Disclosure Document Structured? Item 1: The Franchisor, and any Parents, Predecessors, and Affiliates. Item 2: Business Experience. Item 3: Litigation. Item 4: Bankruptcy. Item 5: Initial Fees. Item 6: Other Fees. Item 7: Estimated Initial Investment. Item 8: Restrictions on Sources of Products and Services.
Franchise systems sell a master franchise (also known as a ?sub-franchise?) in order to more rapidly expand their brand and system. Master franchising is typically the most common way brands expand internationally.
The FDD is divided up into 23 sections and the potential franchisee must review each of them before signing. ing to the FTC, franchisors have an obligation to provide the franchisee with the FDD at least 14 days before it needs to be signed or before any initial money is exchanged.
FIXED CALENDAR DAY DISCLOSURE RULES FTC 14-Day Rule: FTC regulations require that you distribute a complete Franchise Disclosure Document (FDD) with exhibits to all prospective franchisees on a date that is on a date that is not less than 14 days prior to the signing of any agreement or the acceptance of any money.
