All franchise agreements in the United States are governed by federal and state laws that govern the general principle of the contract. There is also a franchise rule, established by the Federal Trade Commission, that covers specific disclosures that the franchisee must make to the franchisee before an agreement can be signed. Some states allow this rule and require the notification, registration or filing of a disclosure document by the franchisee. These states are: Please note that this franchise agreement is only an agreement and does not contain the required disclosure document in accordance with the franchise rule. Franchisees are also required to pay an initial royalty to the franchisee to use their brand and signs. The agreement also includes royalties, which follow for the most part and account for about 4 to 8 percent of total monthly sales. . . .