Grant of Franchise Terms in Franchise Agreements

When a franchisee company expands its brand name through franchising it must draw all the franchise agreement. The franchisor will need to list the terms and conditions in which they will grant of franchise to the franchisee. Generally most franchisors have a specific business model and stipulations, which must be followed, as per the confidential operations manual.

One of the first sections in the franchise agreement will be the grant and rights of the franchise. That is to say, exactly what the franchisor is offering to the potential franchise buyer of a franchise outlet. In the disclosure documents this must be clearly outlined and done in plain English as to be easily understood to prevent litigation down the road. Below is an example of the section of the franchise agreements called grant of the franchise that I used in my franchise company and perhaps this might help you with ideas;

1. FRANCHISE AND TERM

1.1 Grant of Franchise

Franchisor grants to Franchisee, and Franchisee accepts, the right to use the Marks and the Car Wash Guys System of Franchisor in the operation of a business (the