Know more about the franchise agreement
Nowadays, you will find many people going for franchising over starting their own business. This is because a franchise business offers various benefits and involves less risk. If you also want to start up a business of your own, then consider buying a franchise store from a reputable franchisor.
To become a franchisee, you need to enter into a legal agreement with the franchisor. This agreement is commonly known as the franchise agreement. Before buying, you need to clearly this agreement.
Details about the franchise agreement
A franchise agreement is divided into three parts:
The terms – This part of the agreement is very important, as it involves various obligations and rights of the franchisor and the franchisee. This means that this section of the agreement determines their relationship.
Some of the common factors included in terms are the various benefits offered by the franchisor to the franchisee. Secondly, it also includes the responsibility of the franchisee towards the franchise.
Intellectual property – This part of the agreement contains the authority of the franchisee. This includes the franchisor’s trade name, copyright and other confidential information. This means that the agreement helps in protecting the rights of the franchisor and franchisee.
The rules –These rules need to be in favour of both the franchisor and franchisee. These rules have to be the same for all franchisees.
Thus, the franchise agreement is very important and needs to be followed by all franchisors and franchisees.