The legal agreement between the parties which sets out the terms under which the Franchisee will operate the business. The terms usually include the following:

* The right to use the trade name
* The Franchisee’s obligations
* The Franchisor’s obligations
* The premises and the territory
* Length of Franchise contract
* Financial aspects such as initial franchisee fee and ongoing royalties
* Renewal terms
* Control of standards
* Rights of sale
* Performance targets
* Termination
* Effects of termination