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The franchise agreement is a critical document that works alongside the Franchise Disclosure Document (FDD). Unlike the FDD, the franchise agreement is a binding contract signed by both the franchisor and franchisee, outlining the franchisee's obligations. It provides the franchisor with tools to enforce compliance with those obligations, particularly concerning support and training, which are typically at the franchisor's discretion. The agreement is generally favorable to the franchisor, making it an important opportunity to discuss future growth plans with the client, allowing for flexibility in the contract to accommodate the client's aspirations.
