Legal Aspect For Franchise Business

Franchise Agreement

This contract details rights and obligations of both parties. It covers areas like territory rights, fees, marketing, and termination clauses.  Reviewing this document with a lawyer is crucial for franchisees.

Franchise Disclosure Document (FDD)

In the US, the franchisor is required to provide this document to potential franchisees. It details the franchisor's financial performance, history, and risks involved.  Reading the FDD thoroughly is essential.

Intellectual Property (IP)

Franchises typically involve trademarks, copyrights, and patents. The agreement will specify how the franchisee can use this IP. Understanding these rights and restrictions is important.

Compliance with Law

 Franchisees are responsible for following all applicable laws, including employment, tax, and health and safety regulations.pen_spark

Want to Start a Chai & Cafe Franchise Business Under 2 Lakh?