Franchise Law

Franchise Agreement:  At the heart of every franchise arrangement is the franchise agreement under which a franchisor grants a franchisee the right, for valuable consideration, to operate a single franchised business under the terms of the agreement.  Normally, a franchisee must enter into a separate franchise agreement for each separate franchised business that the franchisee operates.

Master Franchise Agreement:  A master franchise agreement is a type of franchise agreement under which a franchisor grants to a master franchisee or subfranchisor the right, for valuable consideration, to grant franchises to others in designated geographic territory and to provide services to franchisees within the territory.  Part of the consideration that a master franchisee gives for its rights in the agreement is the obligation to oversee development of a specified number of franchised businesses according to a development schedule.

Area Representative Agreement:  Also known as an “area director agreement” or “area agreement,” an area representative is on in which the party contracting with the franchisor has similar rights and duties to those of a master franchisee, but less responsibility and less reward.