The franchise agreement may seem exaggerated with legal jargon, but if you understand it, it will give your small business a boost. While not all franchisees repeat the pre-opening and post-opening services they offer to the franchisee in the franchise disclosure documents, strong design principles require that these issues be repeated in the franchise agreement. However, inclusion in the franchise agreement removes the specter of litigation to insert into the contract rights that are not otherwise indicated. A franchise agreement is a license that defines the rights and obligations of the franchisee and the franchisee. The purpose of this Agreement is to protect the franchisee`s intellectual property (IP) and to ensure consistency in the way each of its licensees works under its brand. Even if the relationship is codified in a written agreement that must last up to 20 years, the franchisee must be able to develop the brand and its consumer offer to remain competitive. Most franchise agreements give the franchisee the option, but not the obligation to exercise a denial of rights for the purchase of the franchisee`s business, in the event that the franchisee attempts to transfer the transaction. or the first right to acquire the franchisee`s assets at the time of the expiry or termination of the franchise agreement. There are contracts that legally oblige people to perform certain acts. In the world of franchising, the franchise agreement is set up to ensure that a franchisee operates properly under a given brand. The FTC`s compliance franchise rule requires that the FDD be submitted to the franchisor at least 14 days before the agreement is signed. .