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The franchise agreement is the most crucial document next to the FDD. It is the binding contract that both franchisor and franchisee sign, outlining obligations and giving tools for enforcement. It typically sets out the franchisee's obligations related to support and training. The franchisor has discretion in setting these obligations, making the document franchisor-friendly. It is also a great opportunity to discuss future growth plans with the client and reserve flexibility in the agreement.
