Franchise agreement is an agreement in which the franchisor agrees to lend its trade name or business system to another person or entity (the franchisee) under the guidelines.
The following terms will be defined by this agreement: -
With the help of this agreement, the franchisor will be able to set the standard of quality with regard to the various aspects of a business before signing on the franchisee.
With the help of such an agreement, the franchisor will be able to specify the ways in which the franchisee can use the brand. It also includes the penalties in case of violation of the rules.