Franchisee Agreement Law and Legal Definition
The Franchise Agreement is the cornerstone document of the Franchisee--Franchiser relationship. This agreement formalizes the conditions of the Franchisee agreement, including the term length, franchise fee and royalties, as well as a number of other issues such as developmental assistance, training, and marketing. A Franchise Agreement describes the Franchise relationship between two people, one of whom has decided to franchise a business (the Franchisor), and the other who wants to buy a franchise and have the rights to use the system (the Franchisee).
In a Franchisee Agreement, an entrepreneur buys a license to use another business' products, brand, proprietary knowledge, and trade secrets. This allows the entrepreneur to start a business without building up his/her own brand or products. This helps a person start a business, especially in highly competitive industries.
The Franchise Agreement formalizes the conditions of the Franchisee agreement, including the term length, franchise fee and royalties, as well as a number of other issues such as developmental assistance, training, and marketing.
