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The franchise agreement is the most critical document next to the Franchise Disclosure Document (FDD). It is a binding contract signed by both the franchisor and franchisee, outlining the franchisee’s obligations and providing the franchisor with tools to enforce them. The agreement typically includes the franchisee’s training and support obligations, which are often at the franchisor's discretion, making the documents generally favorable to franchisors. Additionally, this is an important opportunity to discuss the franchisee’s future growth plans, allowing for provisions that offer flexibility in the franchise agreement.
