Types Of Franchise Agreements

Grant of rights. Relationship. Schedule. Fees. Personal guarantee. Franchise territory. Length of the agreement. Ending the agreement.

Learn the 4 main types of franchise arrangements: single unit, multi unit, area developer and master franchise. The franchising industry is very versatile, with multiple franchises, industry options and investment ranges.

The franchise fee usually covers the cost of training (not including travel expenses), plus support and site selection. The items or benefits that are included in a franchise fee are different for every company. In some cases, the franchise fee is just an upfront licensing fee for the right to use the franchise name.

The Franchisor and any Parents, Predecessors, and Affiliates. Business Experience. Litigation. Bankruptcy. Initial Fees. Other Fees. Estimated Initial Investment. Restrictions on Sources of Products and Services.

Within a franchise agreement the franchisee is granted the legal right to establish a franchised outlet and operation wherein the franchisee, among other things, obtains the license and right to utilize the franchisors trademarks, trade dress, business systems, operations manual and sources of supply in offering and

Location/territory. Operations. Training and ongoing support. Duration. Franchise fee/investment. Royalties/ongoing fees. Trademark/patent/signage. Advertising/marketing.

Job Franchise. Product (or Distribution) Franchise. Business Format Franchise. Investment Franchise. Conversion franchise.

Master Franchise Agreement. Area Representative. Area Development Agreement.

This document spells out the expectations, obligations, permissions and restrictions for operating the franchise. A franchise agreement also outlines a fee schedule that the franchisee pays to the franchisor, including amounts or percentages and the frequency of payments.