# FTC Franchise Rule Compliance Agreement
**This Franchise Agreement (the "Agreement") is made and entered into as of [Date], by and between:**
**Franchisor:**
[Franchisor Name]
[Address]
[City, State, Zip]
[Phone Number]
[Email Address]
**Franchisee:**
[Franchisee Name]
[Address]
[City, State, Zip]
[Phone Number]
[Email Address]
## 1. **Recitals**
1.1 **Franchisor's Business**
Franchisor operates a business under the name "[Franchise Name]" and has developed a proven business model, which includes proprietary marks, operational systems, and marketing strategies.
1.2 **Purpose**
The Franchisor grants the Franchisee the right to operate a franchise under the Franchisor's brand name and system, in accordance with the terms set forth herein.
## 2. **Definitions**
2.1 **Franchise**
For the purpose of this Agreement, a "Franchise" means the right to operate a business using the Franchisor's proprietary system, marks, and methods of operation.
2.2 **Franchise Fee**
The "Franchise Fee" shall refer to the initial payment made by the Franchisee to the Franchisor for the right to operate the Franchise.
## 3. **Grant of Franchise**
3.1 **Franchise Rights**
Franchisor hereby grants Franchisee a non-exclusive right to operate the Franchise in [Geographic Area] according to the terms of this Agreement.
3.2 **Duration**
The term of this Agreement shall commence on the date of execution and shall continue for a period of [Number of Years], unless terminated earlier pursuant to the provisions herein.
## 4. **Franchise Fee and Other Payments**
4.1 **Franchise Fee**
Franchisee agrees to pay Franchisor a one-time Franchise Fee of $[Amount] upon the execution of this Agreement.
4.2 **Royalties**
Franchisee agrees to pay ongoing royalty fees of [Percentage]% of gross sales, payable on a [Monthly/Quarterly] basis.
4.3 **Other Fees**
Franchisee shall also pay any additional fees as outlined in the Franchisor’s Franchise Disclosure Document, including but not limited to marketing fees, training fees, and operational assessments.
## 5. **Franchisor's Obligations**
5.1 **Training**
Franchisor shall provide initial training and ongoing support to Franchisee, including but not limited to operational training, marketing strategies, and management practices.
5.2 **Franchise Manual**
Franchisor will provide a comprehensive Franchise Manual that outlines operational procedures, quality standards, and marketing guidelines.
5.3 **Marketing Support**
Franchisor will provide advertising and marketing support as detailed in the Franchise Manual and as reasonably needed to promote the Franchise.
## 6. **Franchisee's Obligations**
6.1 **Compliance**
Franchisee agrees to operate the Franchise in compliance with all applicable laws, regulations, and Franchisor’s operational standards and guidelines.
6.2 **Reporting**
Franchisee shall maintain detailed records and submit financial reports as specified by the Franchisor.
6.3 **Confidentiality**
Franchisee shall maintain the confidentiality of all proprietary information received from the Franchisor.
## 7. **Termination**
7.1 **By Franchisor**
Franchisor may terminate this Agreement for cause if Franchisee fails to comply with any material terms of this Agreement or any applicable law.
7.2 **Notice of Termination**
Both parties agree to provide written notice of termination at least [Number of Days] days prior to the intended termination date.
## 8. **Indemnification**
Franchisee agrees to indemnify, defend, and hold harmless Franchisor from any claims, damages, or liabilities arising from Franchisee's operation of the Franchise.
## 9. **Governing Law**
This Agreement shall be governed by and construed in accordance with the laws of the state of [State].
## 10. **Miscellaneous**
10.1 **Entire Agreement**
This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements and understandings.
10.2 **Amendments**
Any changes to this Agreement must be made in writing and signed by both parties.
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**IN WITNESS WHEREOF**, the parties have executed this Franchise Agreement as of the date first above written.
Franchisor Signature: ______________________
Franchisor Name: [Franchisor Name]
Date: ____________
Franchisee Signature: ______________________
Franchisee Name: [Franchisee Name]
Date: ____________
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**Disclaimer:** This document is a sample template provided for informational purposes only and should not be construed as legal advice. Please consult with a licensed attorney for the drafting or review of legal contracts.