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A franchise is the agreement or license between two legally independent parties which gives: â¢ a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor) â¢ the franchisee the right to market a product or service using the operating methods of the franchisor â¢ the franchisee the obligation to pay the franchisor fees for these rights â¢ the franchisor the obligation to provide rights and support to ...
Once franchise fees, royalty rates, or other fees are established, the franchisor is limited to the adjustments they can make, except with respect to their future franchisees, franchisees that sign successor agreements, or after long and expensive negotiations with their existing franchisees.nce franchise fees, royalty rates, or other fees are established, the franchisor is limited to the adjustments they can make, except with respect to their future franchisees, franchisees that sign successor agreements, or after long and expensive negotiations with their existing franchisees.