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FAQ's on Franchise Agreement for Retail Outlet

The term of a franchise agreement for a retail outlet can vary depending on the agreement between the franchisor and franchisee, but typically ranges from 5 to 20 years.
When a franchisee acquires the right to operate a retail outlet under the franchisor's trademark and system, they must pay an initial franchise fee to the franchisor. The amount of this fee can vary depending on the specific franchise system.
The operations manual is a document provided by the franchisor that sets out the standards, specifications, and procedures for operating the retail outlet in accordance with the franchise system.
The franchisee must pay an ongoing fee to the franchisor called the royalty fee, which is calculated based on a percentage of the franchisee's gross sales. The franchisor uses this fee to support the ongoing development and support of the franchise system.
Yes, a franchise agreement for a retail outlet can be terminated by either party upon written notice for any reason, but termination by the franchisor may be immediate in the event of a material breach by the franchisee. The agreement should set out the specific terms and conditions for termination.

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