Franchise agreement

Franchise agreements are agreements through which franchises grant the right to operate a business. This may be for a specific type of business, an established business, or for a new type of business. A franchise agreement is a contract between the franchisor and the franchisee, or between the franchisor and an individual or corporation that purchases the rights to be a franchisee.


The franchisor holds the franchising rights for the specific type of business and grants only a portion of them to the franchisees. The franchise agreement includes the distribution of responsibilities and benefits between the two parties, payment for using the franchisor‘s trademarks, and the franchisee‘s territorial rights.


A Franchise agreement can include:


  • The franchisee‘s territorial rights
  • Reasonable forecast of profits and losses
  • Payments to the franchisor for the use of its trademark
  • Duration of the agreement
  • Madewhole obligation
  • Indemnification by the franchisee
  • Representations made under the agreement that are not true
  • General exclusions
  • The territorial extent of the franchise



We can help with both reviewing and amending an existing agreement and drafting a new one. To get a quote, simply click here.

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