Franchise Agreement Term
The duration of the franchise license, typically 10-20 years, after which the franchisee must negotiate renewal or cease operations under the brand.
Related Terms
Renewal Terms
The conditions and fees required to extend a franchise agreement beyond its initial term, often requiring remodeling and payment of renewal fees.
FDD
Franchise Disclosure Document - a legal document that franchisors must provide to prospective franchisees at least 14 days before signing any agreement, containing 23 items of disclosure including fees, obligations, and financial performance representations.
Related Articles
WOWorks’ Franchise Incentives Reward Scale, but Cash Timing Matters
WOWorks ties franchise fee reductions, refunds and royalty relief to development commitments. Operators need to put the incentives on the same calendar as their openings.
Finance & EconomicsRiko’s buys two franchise restaurants without adding system locations
Riko’s completed its purchase of Merrick and Levittown restaurants August 31. The transfer changes ownership within a 13-location system as another Long Island site remains planned.
Industry AnalysisMokas’ nine-store agreement spans Missouri counties and three Kansas cities
Cornerstone’s Mokas agreement covers six Missouri locations and three Kansas markets. Its 2027 opening target sits alongside an earlier franchisee’s separately staged development plan.
Operations & ManagementNDCP extends Dunkin agreement with Pacific Northwest pricing benefit
NDCP’s July extension runs through 2056. Original 2012 documents explain how consolidation and purchasing savings were intended to support flat pricing.
Finance & EconomicsWingstop’s Franchise Revenue Gain Shows What New Stores Offset
Wingstop quantified how development offset weaker comparable sales in Q2. The calculation explains corporate growth without establishing franchisee profit.
Finance & Economics