A franchise agreement is a legal, binding contract between a franchisor and franchisee.
Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule.
[2] Once the Federal ten-day waiting period has passed, the Franchise Agreement becomes a State level jurisdiction document.
A franchise agreement contents can vary significantly in content depending upon the franchise system, the state jurisdiction of the franchisor, franchisee, and arbitrator.
It overall provides the investor with a product, a branded name and recognition, and a support system.