Read the passage given below and answer the following question. (Q 4 ) When Rajat Jaiswal started the first outlet of Wat-a-Burger in Noida in 2015, he took the battle right into the doorsteps of a McDonald’s outlet, from where his staff made a bold and irresistible offer to burger lovers: ‘Taste our burgers - and if you don’t like them we will return your money’. The refund challenge was one of the strategies that Rajat, a professional pilot, adopted to build Wat-a-Burger into a Rs 35 crore turnover (2019-20) brand in just four years. Today, there are 67 Wat-a-Burger outlets located across 15 States, with Delhi alone having 11 outlets and many others located in Tier 2 and Tier 3 cities. Rajat started Wat-a-Burger with his childhood friend Farman Beig with Rs 25 lakh in 2015. The duo registered their company in the name of Super Fry India Pvt Ltd and started the first outlet at Noida with just six employees. The first year’s turnover was Rs 75 lakh (2015-16), which was achieved in just seven months of operation. The company continued to grow each year both in terms of turnover and also in number of outlets. They offered franchises and soon the outlets spread to other cities. “We set up the business for the outlet owner, from setting up the place to providing them all the necessary equipment and then supplying the raw materials to maintain the quality,” says Rajat. “We produce our own buns, and deliver them to all the outlets. We have small manufacturing units in different places, to allow easy delivery. We also have tie ups with local bakers for remote areas.

The legal document that binds the franchisor and franchisee together is known as_________

Partnership agreement Franchise agreement Royalty agreement Standard operating agreement

Franchise agreement

A franchise agreement is the legal document that binds the franchisor and franchisee together. This document explains what the franchisor expects from the franchisee in running the business. The agreement is designed to assure that all of the franchisees within an organization are treated equitably. The expectations must be uniform throughout the system.