A Franchise Agreement is a legal, binding contract between a franchisor and franchisee, enforced in the United States at the State level.
Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule. The Franchise Rule requires a franchisee be supplied a Uniform Franchise Offering Circular (UFOC ) or Franchise Disclosure Document (FDD ) prior to signing a franchise agreement, a minimum of ten days before signing a franchise agreement.
Once the Federal ten day waiting period has passed, the Franchise Agreement becomes a State level jurisdiction document. Each state has unique laws regarding franchise agreements.
A franchise agreement contents can vary in content depending upon the franchise system, the state jurisdiction of the franchisor, franchisee, and arbitrator.
A typical franchise agreement contains
- Uniform Franchise Offering Circular (UFOC)or FDD Franchise Disclosure Document (FDD)
- Disclosures required by state laws
- Parties defined in the agreement
- Recitals, such as Ownership of System, and Objectives of Parties
- Definitions, such as
- Agreement, Territory Area, Area Licensee, Authorized deductions, Gross Receipts, License Network, The System Manual, Trademarks, Start Date, Trade name, Termination, Transfer of license.
- Licensed Rights, such as
- Territory, Rights Reserved, Term and Renewal, Minimum Performance Standard
- Franchisors Services, such as
- Administration, Collections and Billing, Consultation, Marketing, Manual, Training
- Franchisee Payments, such as
- Initial License Fee, Training Fees, Marketing Fund, Royalties, Renewal fee, and Transfer fee
- Franchisee Obligations, such as
- Use of Trademarks, Financial Information, Insurance, Financial and Legal responsibility
- Relationship of Parties, such as
- Confidentiality, Indemnification, Non-Compete
- Transfer of License, such as
- Consent of franchisor, Termination of license, Termination by licensee, Termination by licensee
- Other provisions
- Governing law
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... NSWCA 187) In 1991, Hungry Jack's Pty Limited renewed its franchise agreement with Burger King Corporation which allowed the Hungry Jack's to ... BKC made a claim that Hungry Jack's had violated the conditions of the renewed franchise agreement by failing to the expand the chain at the rate defined in the ... claiming BKC had violated the conditions of the master franchising agreement and was in breach of the contract ...
... HOMTV is funded through Cable television franchise fees ... Public-access television channels are a service provided through the Township's franchise agreement with Comcast cable. 1978--The first cable franchise agreement was signed with National Cable Company and Cable TV service became available to Township residents ...
... However, this becomes a supervisory task when the mark is used in a franchise agreement for the sale of goods or services carrying the reputation of the mark ... For a franchise, it is said, a fee is paid, even though it comprises a royalty element ... To be a franchise, the agreement must be a composite of the items the right to use a trade mark to offer, sell or distribute goods or services (the trademark element ...
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