What is the Franchise Agreement?

The franchise agreement is more specific than the UFDD about the terms of the relationship between the franchisor and franchisee. A typical franchise agreement may include specifics about the following:

• The franchise system, such as trademarks and products
• Territory
• Rights and obligations of the parties: standards, procedures, training, assistance, advertising, etc.
• Term (duration) of the franchise
• Payments made by the franchisee to the franchisor
• Termination and / or the right to transfer the franchise

The franchise agreement is the legal, written document that governs the relationship and specifies the terms of the franchise purchase. Like the UFDD, the franchise agreement also enjoys a "cooling-off" period. Prospective franchisees are legally entitled to have the final franchise agreement for at least 5 business days before they are required to sign. This gives them time to review and consider the terms of the agreement.