Franchise agreement

A Franchise Agreement is a legal, binding contract between a franchisor and franchisee. In the United States franchise agreements are enforced at the State level.

Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule. The Franchise Rule requires a franchisee be supplied a Franchise Disclosure Document (FDD ) (originally called Uniform Franchise Offering Circular (UFOC )) prior to signing a franchise agreement, a minimum of ten days before signing a franchise agreement.