Sub Franchise Agreement

The parties may execute a development agreement at the same time as the applicable franchise agreements. Signing two separate agreements may provide additional protection to the franchisee, as it may terminate each agreement if necessary and may contain cross-termination clauses that would allow the franchisee to terminate an agreement if the franchisee fails to comply with its obligations under the other agreement. A master franchisee is a person who has the right and sometimes the duty to sell franchises on behalf of the franchisee. Often, the master franchisee is required to own a certain number of franchises and fulfill its duty to sell additional territories to new franchisees. .

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