Franchise Relationship Clause Samples

The Franchise Relationship clause defines the legal and operational connection between the franchisor and the franchisee. It typically outlines the independent contractor status of the franchisee, clarifies that no partnership or employment relationship is created, and sets expectations for how the parties interact. For example, it may specify that the franchisee is responsible for their own employees and business operations. This clause is essential for establishing the boundaries of the relationship, ensuring both parties understand their roles, and preventing misunderstandings about authority or liability.