Franchisor: The established business that grants the franchise rights. They've already developed the brand, business model, and operational processes.Franchisee: The individual or business that buys the right to operate a franchise location using the franchisor's brand and system.The agreement outlines the terms and conditions of this relationship, essentially a roadmap for how you'll run the franchise business.Benefits of a Franchise Agreement:1 You're buying into a system that has a track record of success, reducing the risk associated with starting a new business from scratch.2 You get to leverage the franchisor's established brand name and reputation, attracting customers who are already familiar with the brand.3 Franchisors typically provide comprehensive training programs and ongoing support to help you operate your franchise successfully.4 Having a defined business model and support system can lessen the chances of failure compared to starting your own independent business.The franchise agreement will detail the rights and responsibilities of both franchisor and franchisee.Franchisee's rightsOperate a business under the franchisor's brand name.Use the franchisor's trademarks, logos, and operating manuals.Receive training and support from the franchisor.Sell the franchised business following specific guidelines laid out in the agreement (franchisees don't typically own the entire brand).Franchisee's Responsibilities:Pay an initial franchise fee and ongoing royalties.Franchisor's Rights:Approve franchisees based on qualifications.Terminate the franchise agreement for breach of contract.Modify the business model as needed (within reason).Franchisor's Responsibilities:Provide initial and ongoing training and support.Maintain the brand's reputation through quality control measures.Disclose important information about the franchise business in a Franchise Disclosure Document (FDD).