What is the concept of franchise agreement?
What is the concept of franchise agreement?
Chiranjibi Aug. 09, 2018
Franchise agreement is a legal document entered into between a franchisor and franchisee to open and operate a franchise unit.
Franchisors typically spend significant resources for promotion of brand. Hence, the responsibility of the franchisor with respect to promotional spend for franchisee and requirement of the franchisee to contribute to brand building activities is mentioned clearly in the franchise agreement.
Franchise agreements are usually entered into for one unit. In case the franchisee wishes to open more additional units, separate agreements are entered into. Franchise agreements greatly vary based on the franchisor.
