Select the one representing main ingredients of a franchise agreement.

Proprietary statements

The correct answer is option (2) - Proprietary statements

The one representing the main ingredients of a franchise agreement is "Proprietary statements." In a franchise agreement, proprietary statements typically include the rights, responsibilities, and restrictions associated with the franchise. These statements may cover aspects such as the use of trademarks, business methods, operating procedures, and other intellectual property owned by the franchisor. Proprietary statements help define the unique aspects of the franchise and outline the terms under which the franchisee can operate the business.

The main ingredients of a franchise agreement:

1.Contract Explanation: The contract explanation is the part of the agreement that outlines the type of relationship a franchisee is entering into with the franchisor.

2.  Operations Manual: The operations manual is the section of the agreement that details the guidelines that the franchisee must legally follow in operating the business as outlined by the franchisor. From time to time amendments may be made and the franchisee must be prepared to adjust operations accordingly. The franchisee needs to be aware that the contents of the document are confidential.

3. Proprietary Statements: Proprietary statements outline how the franchise name is to be used, as well as the marketing and advertising procedures in place that the franchisee will be required to follow. Also, the franchisor documents how much the franchisee will be required to contribute toward national advertising efforts.

4. Ongoing Site Maintenance: Ongoing site maintenance is another item that is outlined in the agreement. Included are the types and timeframes regarding various maintenance items and upgrades that must be made to the franchisee's location.