| Like all contracts, a franchise agreement is a legally binding agreement between a franchisor-franchise business relationship that spells out, in understandable language how the new business will run and spell out exactly what the role of the franchisor will be. This agreement ensures the business will be operated in a manner that is identical to the way all the other franchises are being run and should address future potential bumps and blips down the road, like what happens if the franchisee defaults or the franchisor goes bankrupted. |
