A ________ consists of the terms and conditions associated with purchasing the franchise.

A franchise agreement is a legal document that outlines the terms and conditions under which a franchise operates. This agreement establishes the rights and obligations of both the franchisor (the party granting the franchise) and the franchisee (the party purchasing the franchise). It includes critical aspects such as fees, duration of the franchise, use of trademarks and business models, as well as training and support that the franchisor provides.

Having a clearly defined franchise agreement is essential because it protects both parties and sets expectations for the relationship. It helps to prevent misunderstandings and provides a framework for resolving disputes that may arise.

In contrast, a partnership contract typically pertains to agreements between business partners outlining their roles and profit-sharing arrangements, unrelated to franchise-specific terms. A business license is a governmental authorization to operate a business, but it does not define the relationship between a franchisor and franchisee. An operating agreement generally applies to limited liability companies and specifies the management structure and operating procedures, which is also distinct from the franchise relationship.