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    Franchise Agreement

    In a franchise agreement, a franchisor grants the franchisee the right to use the franchisor's system and proprietary marks to operate a franchised business. The agreement may be limited to a particular location, and also restrict the franchisor from locating another business nearby. The agreement should specify the franchise fee, which may include a fixed initial fee as well as ongoing monthly royalty payments. Franchisees should understand the term of the agreement, the provisions for renewing the agreement, as well as any restrictions on transferring the franchise.

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    Franchise Agreement