Glossary Archive

Franchise Agreement A Franchise Agreement is a legal contract between a franchisor and a franchisee that outlines the rights and obligations of both parties in a franchising relationship. The franchisor is the entity that owns the brand, trademark, and business model, while the franchisee is an individual or business that is granted the license to...

Franchise Disclosure Document (FDD) The Franchise Disclosure Document (FDD) is a legal document that a franchisor must provide to prospective franchisees before they sign a franchise agreement or make any payment. It is designed to provide transparent information about the franchise system, helping potential franchisees make informed decisions. The FDD contains 23 specific sections, known...

Franchise Dispute Resolution Franchise Dispute Resolution refers to the processes and methods employed to resolve conflicts between franchisors and franchisees. These disputes can arise from a variety of issues, including breaches of contract, misrepresentation, non-compliance with franchise agreements, and operational disputes. Typically, Franchise Dispute Resolution involves several stages: Negotiation: The parties attempt to resolve the...

Franchisee Obligations Agreement A Franchisee Obligations Agreement is a legal document that outlines the responsibilities and duties of a franchisee within a franchise system. This agreement is essential for maintaining brand integrity and ensuring that franchisees operate in accordance with the franchisor’s established standards and practices. The agreement typically covers various aspects such as: Operational...

Franchisor’s Royalty Agreement A Franchisor’s Royalty Agreement is a contractual arrangement between a franchisor and a franchisee that outlines the terms and conditions under which the franchisee pays royalties to the franchisor. This agreement is a critical component of the franchise relationship, as it governs the financial obligations of the franchisee in exchange for the...

Fraud Allegations in Arbitration Fraud allegations in arbitration refer to claims made by one party against another alleging that fraudulent behavior has occurred within the context of an arbitration proceeding. These allegations can arise in various scenarios, such as during the formation of a contract, the execution of the contract, or the presentation of evidence...

Frivolous Lawsuit Counterclaim A frivolous lawsuit counterclaim is a legal claim made by a defendant in response to a plaintiff’s lawsuit, asserting that the original lawsuit is baseless or lacks merit. This counterclaim typically arises when the defendant believes that the plaintiff has filed a suit not only without substantial legal grounds but also with...

Funding a Testamentary Trust involves the process of transferring assets into a trust that is created according to the terms of a will and becomes effective upon the death of the testator (the person who created the will). A Testamentary Trust is not established until the testator passes away, at which point the trust is...

Funding a trust refers to the process of transferring legal ownership of assets into a trust. This is a crucial step in establishing a trust, as it ensures that the assets will be managed according to the terms specified in the trust document and will ultimately benefit the designated beneficiaries. There are various types of...

Gag Orders in Dispute Settlements A gag order is a legal directive issued by a court or a governmental authority that restricts parties involved in a dispute from publicly discussing certain aspects of the case. Such orders are often employed in various legal contexts, including civil, criminal, and family law cases, to protect sensitive information,...