Franchising Agreements and the Grant of Right to Sell Franchises

When a franchisee company offers for sale of their method of doing business to the public and use of their brand-name they must list the information in a concise format in the franchise agreement. Additionally when a franchisor wishes to expand their franchise system through the use of master franchises, they will need to further describe how the master franchise is expected to go about the selling of additional franchises and give an overview of exactly what is expected in the agreements.

Below you will find an excerpt from my company's franchise agreement that dealt with the grant of right to sell franchises under my brand-name. This may give you some good ideas of how such things are done;

1.1.1 Grant of Right to Sell Franchises

Once Franchisee Core Services operating franchise has been established and operating for a period of ninety (90) calendar days, Franchisor grants to Franchisee the right to sell to other parties franchises of The Car Wash Guys or Wash Guys Systems (the right to become a