A franchise agreement is a document which is signed between two parties where one of the parties is the parent company or the owner party of the franchise business/ project and the other is the party which is taking the franchise of the respective business.
Whenever a parent company agrees to grant the other party the franchise to its business, they sign a document recording this deal. The agreement specifies all the terms and conditions of the deal such as the terms to be adhered by the parent company and new franchise branch, the amount being transacted, the terms of how will the businesses proceed in future.
Once the agreement is signed, the document becomes legally binding. Thus any sort of violation of the agreement and the terms/ conditions on part of any of the involved parties is punishable. The terms of how the violation must be treated can also be mentioned in the agreement.
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Sample Franchise Agreement
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