Documents Required For Franchise Agreement In Fairfax
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When buying a franchise, you can expect to come across the following documents: Secrecy undertaking or non-disclosure agreement (NDA) signed by the franchisee prior to receiving detailed information on the franchise. Disclosure document provided by the franchisor. Franchise agreement.
The Franchise Disclosure Document (FDD) is a legal document that the Federal Trade Commission (FTC) requires franchisors to provide to prospective franchisees before selling a franchise.
Retaining the services of an attorney who is experienced in franchise or contract matters will help you to understand your rights and obligations under the franchise agreement before you sign.
The franchise agreement is the binding contract between you and your franchisee. It explains all rights and obligations for both parties and protects the integrity of your franchise system and your trademarks. This is one of the first documents you will send to a prospective franchisee.
A comprehensive franchise agreement template should cover: Parties involved. Grant of franchise. Financial provisions. Brand and operational guidelines. Training and support. Marketing and advertising. Duration, Renewal, and termination. Dispute resolution.
The franchise disclosure document (FDD) is a legal disclosure document that must be given to individuals interested in buying a U.S. franchise as part of the pre-sale due diligence process. The document contains information essential to potential franchisees about to make a significant investment.
The primary franchising documents needed to create a franchise relationship and franchise your business include: Franchise disclosure document. Franchise agreement. Operations manual.
Percentage-based franchise royalty model. ing to International Franchise Professionals Group, “Typical franchise royalties range from 4% of your revenue to 12% or more based on the type of franchise business.”
How to create a franchise agreement The names of the parties: List out the full legal names of the parties to the franchise agreement. Use of IP: Establish your ownership of the brand IP and list out all of the IP you're granting to the franchisee, such as manuals, trademarks, patents, and trade secrets.