A franchise agreement is an official contract between a franchisor and franchisee, allowing the franchisee to operate their business according to the terms outlined by the franchisor. This contract outlines the roles and responsibilities of both parties, including the rights of the franchisee to use certain trademarks and brand names, as well as any specific requirements or restrictions when using them. It also describes the franchise fee and royalty structures, as well as obligations regarding advertising contributions, ongoing support services and dispute resolution. In essence, this document defines the relationship between two parties who intend to do business together in a mutually beneficial way.