A Franchise Agreement is a legally binding contract between a franchisor (the brand owner) and a franchisee (the business operator) that governs the rights, responsibilities, and terms of operating under the franchisor’s brand. It is the cornerstone of any franchise relationship — ensuring clarity, compliance, and mutual benefit for both parties.

Franchising allows businesses to expand rapidly and entrepreneurs to leverage established brands. However, without a comprehensive Franchise Agreement, both parties are at risk of misunderstandings, misuse of brand rights, or financial loss. A well-drafted agreement ensures:

• Clear definition of franchise rights and territory.

• Protection of trademarks, brand assets, and business know-how.

• Transparency in fees, royalties, and operational obligations.

• Legal compliance with franchise, consumer, and IP laws.

• Structured dispute resolution in case of disagreements.