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Franchise Agreement

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia 0.01 sec.
Franchise agreement
Contract by which a domestic company (franchisor) licenses its trade name and/or business system and practices for a fee to an independent company (franchisee) in a foreign market.

Franchise
An agreement in which 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 is a common way to start a business, especially in highly competitive industries. An industry that utilizes franchises on a regular basis is fast food; because of stiff competition, it is generally more profitable for one who wishes to start a fast food restaurant to buy a franchise.


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Thus, the determination of whether to declare the franchisee in default under the franchise agreement must be given serious consideration.
Although every franchise agreement will differ to some extent in general franchising can be divided into five distinct categories ?
Build your restaurant portfolio: purchase price includes one corporate owned store (with franchise agreement); Area Development Agreement (with 3 additional franchise agreements); with option to purchase additional franchise agreements.
 
 
 
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