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A Franchise Agreement is a legally binding contract between a franchisor (the owner of a brand or business model) and a franchisee (an individual or entity granted the right to operate under the franchisor’s brand). This agreement outlines the terms and conditions of the franchise relationship, including the franchise fee, royalty payments, operational guidelines, and other relevant terms governing the use of the franchisor’s intellectual property and business model.
A franchise agreement is essential for your business as it legally defines the relationship between the franchisor and franchisee, outlining rights, obligations, and terms. It ensures consistency in operations, protects the brand, and provides a framework for the franchise’s success.
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