A Franchise Agreement is a legally binding document that outlines the franchisor’s terms and conditions for the franchise. It also outlines the obligations of the franchisor and the franchisee. The franchisor provides the franchisee with this agreement at the time when the individual decides to enter the system. For those who wonder what all this agreement states, here are the essential elements of a franchise agreement.

The duration of the relationship is the tenure of the franchisor-franchisee. Generally, franchisors offer a franchise opportunity for a period of five to ten years. The tenure of the relationship is one of the most important aspects of the agreement. It can also be extended if the relationship remains harmonious and they both wish to continue the partnership further.