This can be a termination or expiration, but the different exit strategies must be set out in the franchise agreement. This section of the franchise agreement should also list the steps taken at the end of the franchise agreement to de-locate or separate the franchisee from the business. The franchise agreement should also include a section explaining what constitutes a breach of contract and the consequences of the breach. It should also describe the measures taken to remedy a breach of contract or what happens if the contract is terminated. If you`re growing your business through franchising, a franchise agreement is essential to protect your brand. Essentially, it determines how your brand can and cannot be used, and the critical elements of your business format. The franchise agreement is the legal contract that establishes a franchise relationship between a franchisor and a franchisee. Under a franchise agreement, the franchisee has the legal right to establish a franchise point of sale and a franchise transaction in which, among other things, the franchisee is granted the license and right to use the franchisor`s trademarks, trade dress, trading systems, operating instructions and sources of supply when offering and selling the products and/or services designated by the franchisor. The franchise agreement must be legally disclosed as proof of a franchisor`s franchise disclosure document, which must be disclosed to potential franchisees before offering or selling franchisees. Legally, a franchise agreement is a license from the franchisor to the franchisee. A license simply means that one party gives permission to another party to do something or use something valuable. In the case of franchise agreements, this means that several states have also passed laws that define a franchise, and definitions may include certain relationships that do not comply with the FTC`s franchise rule. The non-compete obligation must be divided into two sections of the franchise agreement: term and term.

A franchise agreement grants the franchisee the right to use the name, trademarks, service marks, logos, slogans, designs and other proof of brand of the franchsior. .