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The Franchise Agreement

Put simply, this is a document that outlines in legal terms how the franchisor / franchisee relationship works with respect to rights and obligations (most often within a given geographical territory or location).

It covers the provision of goods and services from the franchisor to the franchisee, payment terms e.g. detailing a management service fee, how long the initial agreement is for and what happens at renewal time, the sale of an established franchise, expected practice with relation to the trademark and brand, any future adaptations to the franchise system and how to end an agreement.

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