A retail franchise is an arrangement made between two parties, one of which is the owner of a retail branch and the other who is the franchisee of that retail branch. In such arrangements, the owner agrees to let the franchisee run a particular retail branch of his business for a fixed period fo time and in return for a franchise payment.
A retail franchise contract is thus a formally and legally binding document which is made to formalize the retail franchise arrangement in such a way that both the parties can clearly know their roles and are guarded against fraud.
A retail franchise contract is a written document which states that the franchisor has given the responsibility of running a retail branch to the franchisee. The document must thus give the commencement date and termination date of the franchise along with the exact amount that the franchisee has to pay to the franchisor.
The most important part of any such contract are the terms and conditions which define how the franchisee is going to run the business and how much can the franchisor interfere or have a say in its operations. The parties must sign the document to give their consent at the end of the contract.