Franchise Contract - 2792 Downloads

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Franchise Contract
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Uploaded on: 2015-11-06 14:50:00
File Name: Franchise-Contract.docx
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As a company grows, it becomes profitable to look into the possibility of expanding into a franchise. In this case, the company licenses out its brand to a local investor. Then, the investor runs the business and pays a franchise fee to the owner of the brand. To define all aspects of the franchise agreement, a franchise contract is the standard method of detailing fees, the grant of the franchise, and the appropriate termination methods. This contract can be a very long one depending on how many terms and conditions the corporation and the franchise owner wish to define. The essentials of the franchise contract, however, are defining the right to use the brand, the costs paid for that right, the site of the franchise itself, and the date of opening. Many contracts also specify restrictions on items such as relocation and include language that enforces good business habits, such as the need for proper signage and advertising. Finally, each contract has a specified term. After the end of this term, the franchise benefits end unless the contract is renewed in the interim. This franchise contract sample includes the details about establishing the franchise, the duration of time the franchise will be active, and other business essentials. In this case, the contract is assumed to be a new business beginning as a franchise. Additional language may be needed for established businesses that are joining a larger company.

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