Individual franchise contract
It is a collaboration contract between two legally independent companies: Franchisor and Franchisee. By virtue of this contract, the Franchisor grants the Franchisee the right to exclusive distribution of its products (or services) in uniformly equipped and fitted establishments, together with the right to use the Intellectual Property rights (trademarks, signs, names), facilitating, furthermore, all the Know-how (Franchise Manual) and the commercial and technical assistance in order to carry out the distribution. The Franchisee may be a company or an independent professional, natural person. In this case, there is no employment relationship between the Franchisor and the Franchisee. When the Franchisor wishes to grant the development of the franchise in a particular territory (for example a region or the entire country), to a single franchisee that sub-licenses other individual franchisees, the Master Franchise Contract must be used. Both contracts, whether the individual franchise as well as the master franchise can be used for the distribution of products or the supply of services. In product franchise agreements, the franchisee is entitled to market the products manufactured or supplied by the franchisor or by a supplier designated by the franchisor under the franchisor’s trademark in accordance with the commercial expertise of the franchisor and with its commercial support. In service franchise agreements, the franchisee is entitled to render services (for example, cleaning and dry cleaning, consultancy, restaurants etc) developed by the franchisor, under the franchisor’s trademark in accordance with the commercial expertise of the franchisor and with its commercial support. Model of Individual Franchise Contract.