“A Franchise Agreement is a legal document that binds franchisor and franchisee together. This document explains what the franchisor (the licensor) expects from the franchise (the licensee) in running the business.
In developing a proper set of franchise agreements, each of the elements of the franchise need to be evaluated and decisions made. Prior to having the lawyers begin to draft the agreements, it is essential for the franchisor to first develop its business plan, with all the myriad of issues decided on. For most franchisors it is important that in addition to working with qualified franchise consultants and lawyers, they first work with experienced and qualified franchise consultants in crafting their franchise offering.
Franchising is about consistent, sustainable replication of a company’s brand promise and needs to detail the thousand and one business decisions that go into creating any franchise system. It’s complex and in most instances a contract of adhesion (meaning an agreement that is not readily subject to change)”. (MSA Worldwide)