What Is A Master Franchise Agreement

(r) furthermore, not to acquire financial stakes in the capital of a competing company that would give the franchisee the power to influence the economic behaviour of such a business. Master franchisees are generally required to adhere to certain plans for the development of franchised units that can only be operated by the master franchisee or his sub-franchisees. It is unusual for development officers to be required to adhere to a development schedule when it is customary to include specific targets for agents in the corresponding agency agreement. How to protect the franchisor from infringements committed by its under-franchised, master-franchised or development agent In many cases, the franchisee master is required to use the franchisor`s standard sub-franchise contract and to ensure that it complies with local (compulsory) laws. Another possibility is that the principal franchisor has the right to design a standard sub-franchise contract, provided that this standard contract includes a number of clauses considered binding by the franchisor. Whether abroad or within the country, successful franchising control work to quickly build an area, much like a territorial development or a territorial representation agreement is supposed to do. The key difference is that the franchisor does not need to add new infrastructure with a master franchise contract. Everything is essentially outsourced to the franchisee master. The franchisor is not required to add staff for franchise sales, training, site selection, recruitment, ongoing support, etc. The master franchisee takes care of everything.

A franchisee master is not considered a development agent. The main difference between the two figures is that a development officer will never make a franchise; In other words, it is not granted with a franchise and the right to operate a franchise, which the principal franchisor can do either directly or by granting that right to a sub-franchise. When entering into a franchise agreement with a franchisee, a franchisor must take into account the fact that where the parties mistakenly include certain provisions of the franchise agreement that can be construed as constituting or creating an employment relationship between the franchisor and the franchisee`s workers, and when an action is in progress. , the courts have sufficient powers to determine whether the franchisee could be an employer of the franchisee`s workers. This risk must be taken into account in the franchise agreement and the parties must agree that the franchisee compensates the franchisor for any action brought by the franchisee`s staff against the franchisee. 11. Advertising and advertising In order to protect the franchisee`s intellectual property rights and to preserve the identity and reputation of the franchise network, the franchisee creates an advertising fund for the promotion of services in the territory by imposing an advertising tax on all franchisees equivalent to 1.5% of their respective gross turnover. which must be paid in the same way as the deductible fee in paragraph 9, paragraph 2.