a franchise agreement sample also contains an outline of the obligations of both the franchisor and the franchisee. in a franchise agreement, the entity who owns the franchise or the “franchisor” grants the other entity or the “franchisee” the right to make use of the proprietary marks and system to operate the business or franchise. the franchise contract must also specify the amount of the fee the franchisee must pay. before signing, the franchisee must understand everything written on the document including any restrictions and provisions stated therein. a lot of times, people confuse franchise agreements with license agreements.