"Agreement of collaboration between independent companies by which the franchisor yields to the franchisee, in exchange for an economic consideration, the right to use its brand and know-how for products or services, lending it a technical and commercial assistance."
Despite the fact that most franchise chains can fit this definition, there are no guidelines that determine the details of the agreement established between franchisor and franchisee. Issues such as the depth or procedure for transmitting know-how, limitations on the use of the brand, the amount, periodicity or concepts by which the franchisee pays the franchisor the known royalties, subsequent commercial assistance, among others, will be determined by the central franchisor at the start of its activity.
