Franchising - Franchise Agreement

The franchise agreement originated in the United States as a result of business practice and soon after that it began to extend both the national and international markets. Despite the fact that it was created for a very long time, it is still not regulated by law and, as a rule, in practice, acts as a typical formal agreement (a typical example of imposing power is stronger in economically). One of the most clear definitions of this contract was given by the American expert Harold Brown, as: "Oral or written agreement for a certain or indefinite period of time, in accordance with which one person provides another license to use the company, service sign, or another sign , Interest in the placement of goods or services in bulk and retail, for rent or otherwise on this license. "

Duty franchisor
As the main creator of the content of the franchise agreement, the franchisor is usually trying to make his duties, in contrast to the duties that he imposes on the franchisee, more condescending. The main obligation of the franchisor is to provide the recipient with the necessary assistance, which should guarantee full absorption and proper quality of contractual activity. A franchisor commitment can be coordinated to deliver certain goods to the recipient or provide services related to the implementation of the actions of the franchise business.

Duty franchisee
In this contract, the franchisor takes a dominant position and, as a rule, tries to oblige franchisees as much as possible. Particularly strict provisions concern the disclosure of commercial secrets, compensation, the consequences of delay, etc. The main characteristics of the franchisee are that it is in everything (the quality and appearance of goods and services, propaganda, financial management ...) complies with the agreed provisions that are the result of numerous franchisor requests. His duty is to enable the franchisor to perform a control function (quality control, financial operations, etc.). The obligation to pay the Commission for the use of the franchise is equivalent to its use. The Commission usually consists of a part that is paid in advance (initial access fee), and the variable part, which is determined as a percentage and the size of which depends on income. which is implemented in the franchisee market. Best software real reviews on . We collect all reviews around the world and put them into 1 source!

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