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How to draft a Franchise Agreement

We may try to expand our business at some point of time by way of introducing new products, launching a new branch office and in many other ways. Onc such way of expanding your business is Franchising. Converting your business as a Franchise business is the smart way of making money.

Normally plenty of our people get confused between Franchise and Partnership. Partnership is where two people agreest to start a New business for the object of making profit. But here in Franchise, the Franchisor agrees to license only his Brand name and for that, the franchisee accepts to share the revenue by way of Royalty.

Franchisor: The person who agrees to license the brand

Franchisee: The person who agrees to start the franchise outlet of the franchisor in his area

Franchise Agreement: The agreement which is signed between the Franchisor and Franchisee

Franchisor’s Commitments

Franchisee’s Commitments

As the franchisor franchisee relationship involves many commitments and responsibilities, there may be plenty of issues too, to avoid any issues between the franchisor and franchisee, the best option is to sign a franchise agreement.

This is a legal document which creates the relationship between the franchisor and franchisee. Only through this Agreement a Franchisor grants the license to the Franchisee to use his brand and start the outlet in a specific location. This agreement speaks about the terms and conditions between the Franchisor and Franchisee.