Franchise agreements are complex and vary for each franchisor
Posted: Sun Apr 20, 2025 10:03 am
The franchising contract is the document that establishes the collaboration between franchisor and franchisee.
If you want to know all the technical aspects of the franchising contract, you can find the interview with Nicola Passerini, one of the reference lawyers of Federfranchising , on our Youtube channel ( click here to watch it ).
Typically, a franchise agreement includes three categories of payments that must be made to the franchisor by the franchisee.
First, the franchisee must purchase the controlled rights, or band data trademark, from the franchisor's business in the form of an upfront fee.
Second, the franchisor receives training, equipment, or business consulting services.
Finally, the franchisor receives the fee or royalties.
It is important to note that a franchise agreement is temporary, similar to a lease.
Franchise agreements typically last 5 to 30 years, with severe penalties or consequences if a franchisee breaches or terminates the agreement prematurely.
If you want to know all the technical aspects of the franchising contract, you can find the interview with Nicola Passerini, one of the reference lawyers of Federfranchising , on our Youtube channel ( click here to watch it ).
Typically, a franchise agreement includes three categories of payments that must be made to the franchisor by the franchisee.
First, the franchisee must purchase the controlled rights, or band data trademark, from the franchisor's business in the form of an upfront fee.
Second, the franchisor receives training, equipment, or business consulting services.
Finally, the franchisor receives the fee or royalties.
It is important to note that a franchise agreement is temporary, similar to a lease.
Franchise agreements typically last 5 to 30 years, with severe penalties or consequences if a franchisee breaches or terminates the agreement prematurely.