Define Franchisor and Franchisee Obligations

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What am I responsible for?

Define Franchisor and Franchisee Obligations

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 presence
  • Trademark rights
  • Know-how and experience
  • Training
  • Ongoing support
  • Intellectual property
In return for a proven business system, trademark and support the franchisee provides:

  • Up-front fee and ongoing royalties
  • Motivated and enthused effort
  • Expanded market awareness
  • Additional site management

   

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