Franchising & Licensing, 4th Edition

CHAPTER 7Structuring Franchise Agreements, Area Development Agreements, and Related Documents

The principal document that sets forth the binding rights and obligations of each party to the franchise relationship and that contains the various terms and conditions to which the parties are bound for the term of their relationship is the franchise agreement. This agreement, therefore, must strike a delicate balance. On one hand, the franchisor must maintain enough control in the franchise agreement to enforce uniformity and consistency throughout the system. On the other hand, the franchise agreement must be flexible enough to anticipate changes in the marketplace and modifications to the franchise system and to address special considerations or ...