A business franchise is a formal arrangement that is formed between a business owner and a person or party who agrees to run a branch of that business for a certain fixed and temporary period of time. A formal and written document which specifies the details of this arrangement so that it can be used later for legal reference or backing is known as a business franchise contract.
A business franchise contract is a document which must state the details of the franchise so that a proper detailed description of the franchise can be recorded.
A business franchise contract must begin by giving the purpose of the contract along with the details of the franchisor and the franchisee. It must then give the date from which the franchise will be in effect and also the effective length of the contract.
A business franchise contract should also consist of the various terms and conditions of the franchise including the role of the franchisee in the running of the business as well as the responsibilities of both. Another important part of a contract of this kind is the franchise amount which the franchisee pays to the franchisor for buying the franchise.
Sample Business Franchise Contract: