A franchise agreement is a legal contract between a franchisor and a franchisee that outlines the terms and conditions of the franchise relationship. The franchisor, who typically owns the trademark and business model, grants the franchisee the right to operate a business using the franchisor’s brand name, products, and services, in exchange for an initial fee and ongoing royalties. In general, a franchise agreement is designed to provide structure and stability to the franchise relationship, while also allowing for some flexibility to accommodate local market conditions and changes in the business environment.
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