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.
Virginia Subfranchise Agreement
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US-2-03-3-STP
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FAQ
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.
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.
If the parties proceed by way of sublease, the landlord-tenant relationship will be preserved between the head landlord and the franchisor, and a new landlord/tenant relationship will be created between the franchisor, as sublessor, and the franchisee, as sublessee.
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.
When it comes to structuring franchise arrangements, there are typically three different types franchise agreements. Single-Unit Franchise Agreement. ... Area Development Agreement. ... Master Franchise Agreement.
Sub-franchising is a provision whereby a franchisor grants the right to a sub-franchisor to assume the role and rights of the franchisor in selling to pro- spective franchisees the ability to establish and operate franchsed units within a speci- fied regon.
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.
