Sample Franchise 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.

According to Goldman, three elements must be included in a franchise agreement: A franchise fee. Some amount of money must be paid by the franchisee to the franchisor. A trademark or trade name.

Franchisor-Franchisee Relationship. In the first place, the relationship of the franchisor and the franchisee is outlined. Duration of the Agreement. Franchise Fee. Business Operations. Site Selection and Development. Training and Support. Use of Intellectual Property.

3. Length of the Franchise Agreement. The typical duration of a franchise agreement is usually 10 or 20 years. This part of the contract will also spell out the conditions under which the franchise can be sold to someone else, which can be stringent to make sure that any future franchisee is qualified to be an owner.

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

Some of the most successful franchise businesses in the United States include Subway, McDonald's, Pizza Hut, Burger King, and Dunkin' Donuts; but restaurants are not the only kind of franchise businesses available. Some business types are more appropriate for franchising than others.

Franchising is a business relationship between two entities wherein one party allows another to sell its products and intellectual property. For example, several fast food chains like Dominos and McDonalds operate in India through franchising.

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