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Cover the essentials. A franchise agreement should cover all the essential elements of the franchising relationship, such as the grant of the franchise, fees and royalties, training and support, standards and policies, and renewal and termination.

The legal relationship between a franchisor and franchisee is primarily a contractual one based on the franchise agreement the parties enter into as two independent business people. A franchise agreement is subject to the usual principles of contract law.

Yes. California is a franchise registration state. The initial FDD registration fee is $675 and the FDD renewal fee is $450. Before offering or selling a franchise in the State of California franchisors must first register their FDD with the California Department of Financial Protection and Innovation.

A franchise agreement safeguards both parties. It protects both you as the franchisee and the franchisor's brand. When purchasing a franchise, you will be making a significant financial investment. A written agreement grants you rights that can help protect your investment in your firm.

Washington State is a franchise registration state. Before offering or selling a franchise in Washington, you must register your FDD with the Securities Division of the Washington State Department of Financial Institutions.

These legal documents, along with the operating manuals, staffing, training programs, and marketing initiatives, are your main investments in the franchise system. The two primary documents you'll create are the Franchise Agreement and the Franchise Disclosure Document (FDD).