The Franchise Agreement

The franchise agreement is a contract between two parties identifying the Franchisor (seller) and the Franchisee (buyer) of certain rights to use a name, brand, territory and other resources owned or controlled by the Franchisor. A royalty fee is paid in exchange for the exclusive rights to use them.

The Franchise Agreement – Geographical Territory Clause

Geographical Territory Clause

Every franchise agreement should discuss the issue of the source of customers. This is known as the geographical territory, protected territory or exclusive territory. Many agreements spell out the zone or area of your customer source. It is important to understand the Geographical, Protected or Exclusive Territory Clause in the Franchise Agreement. 

Introduction to Franchises

Franchises

Simply put, Franchising is a partnership relationship. As a small business owner, you have to decide if you truly want to be in a relationship with an authority in your business operation. This can be a mutually beneficial arrangement or a nightmare from day one.

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