The Duties in a Franchisee-Franchisor relationship

Like in every relationship, in the franchisee- franchisor relationship there is a certain set of rules and obligations. In order to be successful as a team both parties have to abide by the stated rules and obligations. The duties of both parties are as follows:

Duties of the Franchisee • To work in the best interest of the franchise and try to grow it without sacrificing its common identity. • To keep the franchisor well informed about your business by providing him various necessary details such as sales record, financial records etc and allowing him access to your premises when he deems fit. • To not disclose to a third party, the business secrets of the franchisor. • Pay the royalty fees and avoid all irregularities with respect to fee payment.

Duties of the Franchisor • To have the business knowledge and experience to start a franchise network. • To view the franchisee as a business partner and not only as a money making prospect. • To have the right to use the intellectual property of the brand. • To provide the franchisee all the expertise and help needed to grow his business.

Shared duties of both • Both parties should be transparent in their dealings with each other. • To ensure that they stick to the Franchise agreement. • To ensure all the grievances are addressed properly through a formal channel.