It is a legally binding document which specifies what the duties and obligations of both the franchisor and franchisee are towards the franchise.
It is basically made by a well established business consents to provide its brand, operational model and required support to another party for them to set up and run a similar business in exchange for a fee and some share of the income generated.
Why Draft Franchise agreement?
- To attain goodwill.
- To improve trademark and brand image.
- To grant another party the right to run the business in a similar manner associated with that trademark.
- To outline how the business will be run.
- To meet branding and operative criterions.
- To ensure quality is maintained
- To assure and maintain revenue
- To meet business requirements
You need to keep in mind the following details
- Proper name and address of the Franchiser [ the company which is ready to let out the services for expanding business throughout the nation]
- Proper name and address of the Franchisee [ individual who is ready to start the business under the name and style of the franchisor for certain amount decided earlier.]
- Correct description of the business.
- Correct Registered Address of the franchisor company
- Certificate of Incorporation.
Why The Legal Capsule?
Because we are efficient, correct and we look to achieve client satisfaction.