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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