What Is a Franchise Agreement?

What You Need to Know Before You Sign


Signing

Like opening any business, there is a lot of paperwork to sign before you can become a franchise owner. One important document you’ll need to read thoroughly is the franchise agreement.

What’s in a Franchise Agreement?

A franchisor is a business that lends out its brand to people called franchisees. Franchisees are able to leverage the brand to conduct business. The franchise agreement is a legally binding document that outlines a franchisor’s terms and conditions for a franchisee, including expectations, fees, requirements, and more. It is signed when an individual decides to enter into a business relationship with the franchisor.

The franchise agreement is a license that is used to establish the rights and agreements between the two parties. It protects a franchisor’s intellectual property to ensure the brand is properly represented across all locations. It gives the franchisor permission to change the branding at any point in time.

A franchisee is considered an independent contractor. The franchisor is able to control and provide assistance in relation to how the franchisee uses and represents the brand to conduct business. This means that the franchisor has control over the public-side of the franchise location, but the franchisee might have full control over how the business is run (employment, employee expectations). The franchise agreement outlines these expectations.

This document also outlines the fees associated with opening a location and using the franchisor’s brands and trademarks. Some companies request only an initial fee, while others require periodic payments.

Some states have their own franchising laws. Be sure to check for things specific to your location!

Are You a Veteran or Military Family Member?

JDog Brands offers franchising opportunity through JDog Carpet Cleaning and JDog Junk Removal to Veterans and their family members, who we find share our same ethos of Respect, Integrity, and Trust. Does this sound like you? Call us today at 484-324-6444 for more information about how you can open your location in as little as eight weeks.


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