Franchise Agreements – Needs And Advantages

Franchise agreement – Introduction

With the advent of globalization and liberalization, businesses have taken many business models for sustenance and prosper. Franchising has been one of the profitable business models that involve the domestic players as well as foreign businesses.There are various types of franchising systems are in place, which includes the dealer arrangement, marketing arrangement, trademark-usage arrangement, product distribution arrangement, manufacturing arrangement, etc.

Franchising can be regulated by the negotiation, drafting and agreement on the terms of the contract created by mutual understanding of the franchisee and franchisor.

A Franchise Agreement is a legal document mutually agreed by the franchisee and franchisor, which binds both on the franchisor and franchisee. Itcreates the legal obligations to be fulfilled by both the franchisor and the franchisee, and also the clear expectation of the franchisor from the