The Concept of the Franchise Agreement
The franchise agreement is a long-term obligation relationship under which independent enterprises mutually undertake, as needed, by performing specific obligations to facilitate the production, sale and carrying out of services of goods. This definition matters for two reasons: first, the relationship is long-term, and its planning therefore takes place over a horizon of years; second, the parties remain independent enterprises — the franchisee does not become a branch or a subsidiary of the franchisor.
This natural reciprocity determines the whole chapter: the franchisor maintains and develops the system, while the franchisee pays remuneration and actively conducts the business. In Georgia this relationship is defined by a separate chapter of the Civil Code, and its norms create the minimal framework which the parties' agreement fills out in greater detail.