Washington Sample Franchise Agreement
Description
How to fill out Sample Franchise Agreement?
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FAQ
You should ask questions about training, termination conditions, renewal conditions, extreme situations such as the death of the franchisee and other details about the franchise. It is important you understand the history of the franchise to make sure it has the reputation you desire.
Washington State is a franchise registration state. Before offering or selling a franchise in Washington, you must register your FDD with the Securities Division of the Washington State Department of Financial Institutions.
Term of Agreement: The term of agreement is the length of time the franchise agreement is good for. Typically this term lasts anywhere from five years to twenty years. Once the term is up, the franchisor can renew the agreement if things are going well and/or the contract can be readjusted.
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.
Agreement Term: Details the length of time of your franchise agreement, common timeframes are between five and 20 years.
There are two parties in the franchise agreement, the franchisee and the franchisor. The franchisor grants the franchisee the right to use its brand, product and the operation of its business. The subject of the contract may be the production, sale and marketing of a product or the provision of services.
A typical franchise agreement should include clauses pertaining to location, duration, operation, fees, and use of intellectual property. However, basic knowledge would not suffice to conclude such an important contract, and professional legal advice is necessary.
Conclusion. In a franchise agreement, there are typically three main conditions that you should be aware of as a potential franchisee. These conditions involve the rights and obligations of the franchisor and franchisee, the terms for renewal or termination and the financial arrangements between both parties.
