Franchise Agreement

A Franchise Agreement is a legally binding contract in which a well established business gives consent to provide its brand name. The establishment giving its brand name set out outlines the terms and conditions, obligations in the agreement which is to be followed by another party for set up and run a similar business in exchange for a fee and some share of the income generated in the business known as royalty payment. It specifies the detailed duties of both the franchisee and the franchiser and the fees to be expected.

Generally, franchise business is entered into by well established foreign brands to set their business into other countries.

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