February 5, 2010, Newsletter Issue #115: Define Franchisor and Franchisee Obligations

Tip of the Week

To establish a strong franchise relationship the franchisor and franchisee must have clear communication and not only understand, but embrace their roles and responsibilities. Both parties are contractually bound and contribute to the success of the relationship and franchise organization.

For an initial fee and an ongoing royalty, the franchisor provides:

Established market presenceTrademark rights Know-how and experienceTrainingOngoing supportIntellectual property In return for a proven business system, trademark and support the franchisee provides:

Up-front fee and ongoing royaltiesMotivated and enthused effortExpanded market awarenessAdditional site management

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