Question

Give the meaning of 'Franchise Agreement'.

Answer 1

• A franchise agreement is a legally binding contract between a franchisor and a franchisee that outlines the terms and conditions of the franchising relationship.
• It specifies the rights and obligations of both parties, including the use of the franchisor’s brand, business model, operational guidelines, payment structures (like franchise fees or royalties), and support provided by the franchisor.
• This agreement ensures consistency in operations and protects the interests of both parties involved in the franchise.