What is a Standard Franchise Agreement?

A standard franchise agreement is a legal document drawn-up by a specialist franchise lawyer.  A franchise agreement details the legal responsibilities and obligations of both the franchisee and franchisor.

A standard franchise agreement falls under one of two types.

  • Standard franchise agreement allows an individual or individuals to trade as a franchisee of a brand.
  • Master franchise agreement enables the franchisee to act as franchisor in an alternative country or location. A master franchisor will recruit further Franchisees under a standard franchise agreement.

Either potential franchisees will have the opportunity to view the full franchise agreement, usually around deposit stage.

As a franchise agreement is a legally binding document, it is highly recommended that a specialist franchise lawyer reviews the franchise agreement.  This forms an important part of due diligence when considering a franchise investment.

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