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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 ...
Territory: An exclusive territory will not be granted to the franchisee, unless the franchisee is under the franchise agreement for an exclusive area development program. Term of Agreement and Renewal: The length of the franchise term is 20 years, with the exception of the School Lunch program with a term of 5 years. The franchise will automatically renew for additional 20 year periods, unless either party chooses not to renew. The renewal term for the School Lunch programs is 5 years. Subway has the right to refuse renewal if the franchisee is not in full compliance.