Often, large real estate companies have multiple business or office branches which they may not always be able to run or handle on their own. For this purpose, real estate companies put certain branches on franchise.
A real estate franchise contract is a contract that is formed between a real estate franchisor and a franchisee to seal the arrangement of handling over the franchise. The contract describes the way the franchisee will be running the real estate franchise on behalf of the franchisor and what all rights and duties he/she shall have in the business.
A real estate franchise contract is a legally enforceable document which is formed to ensure that the franchisee does his/her part of the deal effectively and that the franchisor performs his part as per mutual discussion.
Such contracts must give the effective date of the franchise, the termination date of the franchise, the effective length of the contract and the amount that the franchisee pays to the franchisor for buying the franchise for a temporary period. The terms and conditions of the real estate franchise contract must explain the roles and responsibilities of the franchisor and the franchisee. Such contracts are signed at the bottom for guarantee of mutual consent.
Sample Real Estate Franchise Contract: