Franchise agreements – a part of our royalty database
March 2023 | RoyaltyRange
According to International Franchise Association (IFA), a franchise is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.
The most important elements of franchising are the brand and the franchisor’s business system.
First of all, a brand is an asset that consumers already know and choose, and it means that the franchisee has no necessity to prove the value of this brand from the very beginning.
Secondly, franchisors have their own well-developed business system and wish franchisees to meet certain criteria. To ensure this, franchisors are ready to provide their franchisees with support. This support often appears as a recognized brand name, site selection & development assistance, training, R&D of new products and services, etc.
Our lawyers conduct a daily search in various sources of franchise agreements and ensure that clients would be provided with the most recent and high-quality data. Our analysis of franchise agreements includes the description of the object, territorial rights, duration terms, usage restrictions, including but not limited to non-competition terms, functional analysis which perfectly reflects the most important moments of the relationship between franchisor and franchisee, and fees.
Feel free to contact us and we will be happy to guide you through our franchise agreements system