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The franchise agreement is a critical document alongside the Franchise Disclosure Document (FDD). It is a binding contract signed by both the franchisor and franchisee, outlining the franchisee’s obligations and granting the franchisor tools to enforce these obligations. The agreement typically emphasizes the franchisor's discretion regarding support and training obligations, making it generally favorable for the franchisor. It is also advisable to discuss the franchisee's future growth plans within this agreement to ensure flexibility is reserved for the client’s strategic objectives.
