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It defines independent contractor status, personal participation requirements, and delegation limits while retaining ultimate authority. It covers retail price recommendations, franchisee responsibility for permits, strict compliance with laws and regulations, and tax payment with an indemnity for franchisee-based tax liabilities. It also sets standards for operating in line with the manual, maintaining brand image, conducting ethical dealings, and maintaining the premises.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/franchise-agreement-chapter-7-operation-of-licensed-business/282107/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/franchise-agreement-chapter-7-operation-of-licensed-business/282107.png","ImageObject",442,249,{"name":88,"@type":89},"Blaney","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-20","2026-09-16",true,{"@type":98,"interactionType":99,"userInteractionCount":8},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What does independent contractor status mean for each party in Chapter 7?","Question",{"text":108,"@type":109},"Each party remains an independent contractor and controls its own business operations. They are not agents, joint venturers, partners, or employees of the other unless specifically authorized by the agreement.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"Can the franchisee delegate management duties to another person?",{"text":113,"@type":109},"Yes. The franchisee may delegate day-to-day management to a responsible person, but must reserve ultimate authority and responsibility. Any manager must complete the franchisor’s training before taking full responsibilities, with training costs borne by the franchisee.",{"name":115,"@type":106,"acceptedAnswer":116},"What compliance and legal responsibilities does the franchisee have?",{"text":117,"@type":109},"The franchisee is solely responsible for obtaining and maintaining permits and licenses and for strictly complying with all applicable laws, ordinances, and regulations. The franchisee must timely pay applicable taxes and agrees to indemnify the franchisor for tax liabilities based on the franchisee’s operations.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},282107,1790508402,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":8,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":47,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":73},1236954677761,"https://us-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","For the full version of this document, please click here:  \n[https://www.franzoom.com/Pro/Franchise-Agreement-Template.html](https://www.franzoom.com/Pro/Franchise-Agreement-Template.html)  \nFor the advanced template bundles please click here:  \n[https://www.franzoom.com/Products/FDD-FA-OM-ADV-Bundle.html](https://www.franzoom.com/Products/FDD-FA-OM-ADV-Bundle.html)  \nArticle 7-Operation Of Licensed Business  \n7.01 Independent Contractor.  \nEach party to this Agreement is and shall remain an independent contractor and shall control the manner and means of operation of its respective business and shall exercise complete control over and responsibility for all labor relations and the conduct of its agents and employees. Neither party shall be considered or held out to be agent(s), joint venturers, partners or employee(s) of the other, except as specifically authorized by this Agreement. Neither party shall negotiate or enter into any agreement or incur any liability in the name of or on behalf of the other unless, and to the extent, specifically authorized by this Agreement. Franchisee shall prominently display signs at all times in the manner specified by Franchisor, indicating the name of the Franchisee and stating that the Licensed Business is independently owned and operated. Franchisee's business forms that bear the Marks shall contain Franchisee's name and a statement that the Licensed Business is independently owned and operated in such form as Franchisor may specify.  \n7.02 Personal Participation.  \nThroughout the term of this Agreement, Franchisee shall either devote Franchisee's full time and effort to actively managing the Licensed Business or delegate its management to a responsible person. Notwithstanding any delegation of authority hereunder, Franchisee shall reserve and exercise ultimate authority and responsibility with respect to the operation and management of the Licensed Business. If Franchisee employs a manager to run the day to day operations, the manager shall be required to attend and successfully complete Franchisor's training program prior to taking over full day-to-day responsibilities, at Franchisee's sole cost and expense (except for Franchisee's first manager whom Franchisor will train at no additional charge to Franchisee for the training—but Franchisee shall be solely responsible for all travel and living costs of trainees) . Franchisee shall devote such time and effort to the Licensed Business as Franchisee determines, but shall reserve and exercise ultimate authority and responsibility with respect to the operation and management of the Licensed Business.  \n7.03 Retail Prices.  \nFranchisor may recommend prices and pricing strategies for products and services. Franchisee is obligated to follow such price recommendations to the extent such obligation is consistent with applicable law and is otherwise solely responsible for establishing franchisee's own retail prices at such levels as franchisee deems appropriate.  \n7.04 Compliance With Laws.  \nFranchisee shall be solely responsible, at Franchisee's sole cost and expense, for obtaining and maintaining all necessary or required permits and licenses in order to operate the Licensed Business. Franchisee is solely responsible for strictly complying with each and every law, ordinance and regulation applicable to the Licensed Business, including, but not limited to, licensing, health, safety, environmental, consumer and labor regulations. Franchisee shall timely pay all applicable taxes as they come due, but may challenge the amount or applicability thereof; provided, that Franchisee hereby agrees to indemnify, hold harmless and defend Franchisor from any and all liabilities for taxes based upon Franchisee's operations.  \n7.05 Franchisee Business Operation.  \nFranchisee understands and acknowledges that every detail of the System and of the operation of the Licensed Business is important to Franchisee, Franchisor and other Company ABC franchisees in orde","cbCailm1JHpn1oz7","https://ap.wps.com/l/cbCailm1JHpn1oz7","pdf",180132,"English","# Article 7-Operation Of Licensed Business\n## 7.01 Independent Contractor\n## 7.02 Personal Participation\n## 7.03 Retail Prices\n## 7.04 Compliance With Laws\n## 7.05 Franchisee Business Operation\n## 7.05.01 Compliance with Manual\n## 7.05.02 Image\n## 7.05.03 Business Dealings\n## 7.05.04 Maintenance","[{\"question\":\"What does independent contractor status mean for each party in Chapter 7?\",\"answer\":\"Each party remains an independent contractor and controls its own business operations. They are not agents, joint venturers, partners, or employees of the other unless specifically authorized by the agreement.\"},{\"question\":\"Can the franchisee delegate management duties to another person?\",\"answer\":\"Yes. The franchisee may delegate day-to-day management to a responsible person, but must reserve ultimate authority and responsibility. Any manager must complete the franchisor’s training before taking full responsibilities, with training costs borne by the franchisee.\"},{\"question\":\"What compliance and legal responsibilities does the franchisee have?\",\"answer\":\"The franchisee is solely responsible for obtaining and maintaining permits and licenses and for strictly complying with all applicable laws, ordinances, and regulations. The franchisee must timely pay applicable taxes and agrees to indemnify the franchisor for tax liabilities based on the franchisee’s operations.\"}]","Franchise Agreement - Chapter 7 - Operation Of Licensed Business | PDF",1789570249]