Franchise contracts are very important agreements which are made between the franchisee and the franchisor. These are legally binding documents which stress upon the duties and responsibilities of both the involved parties. If any of the two parties break or violate the terms of such a contract, then it can face legal actions or implications.

A franchise contract comes into play at the very end of the buying procedure. The party buying a business from the other party is called Franchisee while the one selling it is called Franchisor. This contract talks about the details of the deal and describes in detail the certain terms and conditions to be followed by the involved parties throughout the length of the contract.

The following are the main things to be kept in mind while framing a franchise contract:

  • The names and contact details of both the parties should be clearly mentioned.
  • The effective date of contract and the period of contract must be spelled out.
  • The terms and conditions of which are decided among the parties should be stated in points and in a detailed manner.
  • The signatures of the involved parties should be done at the end of the contract.
  • The overall tone should be formal and business like.

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