A standard U.F.O.C. (Uniform Franchise Offering Circular) Franchise Agreement will cover:

1.  The franchisor's obligation to you as the franchisee; and
2.  Promises, that you, as the franchisee, are required to make to the franchisor.

In a standard agreement, the franchisor's obligations to you as the franchisee are to:

• Provide you with an exclusive arrangement to market a product or service in a particular way in a particular territory.
• Define in detail the goods or services to be provided to you and on what terms they will be provided.
• Provide you with a management system.
• Supply you with other assistance (such as advertising and promotion).
• Specify other services which are to be provided to you, such as group discounts and centralized buying.
• Provide you with training.
• Spell out any specific provisions relating to trademarks and logos.
• In a standard agreement, the franchisor will seek to bind you as the franchisee, to a set of promises that ensure you will:
• Operate the business to your best endeavors.
• Adopt the culture of the franchise.

Protect the franchisor's goodwill by achieving a minimum standard of performance (with the understanding that the franchiser is entitled to terminate the Franchise Agreement if you fail to perform to the standard).

• Follow certain accounting procedures.
• Make available records to the franchiser.
• You should also be aware that the franchisor would seek to:
• Restrict your right to sell, re-assign or abandon the franchise outlet.
• Limit your use or application of confidential material regarding the franchise.
• Restrict your capacity to enter into competition with the franchiser.

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