Arrangement of Rights and Obligations between Franchisor and Franchisee

A franchise agreement can take many forms. In addition to the actual extent of the areas covered by the agreement, there is a significant difference in the degree of control and management of certain aspects of the business by the franchisor.

For example, the franchise agreements may differ in whether the franchisor has control over the franchisee's lease of the premises and only subleases the premises to the franchisee, or whether the franchisee provides the equipment necessary for the business on its own account or whether the franchisor leases it to the franchisee.

The degree of dependence on the franchisor is, however, limited by the very definition of an entrepreneur as a person who carries on a gainful activity independently, on his own account and under his own responsibility.

If you are interested in franchising your business, we offer you our assistance to evaluate the right franchising model as well as comprehensive legal services in drafting the relevant contractual documentation.