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A legal contract for franchisees to operate under the franchisor’s brand.
- Established brand and recognition.
- Access to proven business model.
- Support from franchisor for training and operations.
Summary If you offer business opportunities to people by way of a franchised structure, then you will need a Franchise Agreement to contract with your franchisees.
Why do I need a Franchise Agreement? An organisation that wants to franchise its business operations and sell franchises to interested franchisees will need a Franchise Agreement. The franchise agreement is a legal requirement and is used to set out the rights and obligations of both franchisee and franchisor, generally clarifying what is required of both parties. The Agreement sets out the terms of the franchisor’s relationship with the franchise owner, including the terms of payment and royalty fees.
Note: before entering into the franchise arrangement we suggest that you get your prospective franchisee to sign a Confidentiality Agreement and a Franchise Application Form. A Franchise Disclosure Document is also a legal requirement.
What does the Franchising Agreement include? These Franchise Terms and Conditions consist of: Definitions; Grant of Franchise; Consideration Payable; Products; Marketing and Documentation; Training; Franchisee’s Obligations; Franchisor’s Obligations; Termination, Option and Breach; Restraint of Trade; Notices; General; Franchisor information; Table of costs, charges and expenses; Trademarks and Intellectual Property; Table of Training.
How long is this franchise template? The template franchise terms and conditions in its current form can be printed onto 32 pages.
What do you need to do to use an editable Franchise Agreement?
- Read the template Franchise Contract to ensure that it suits your requirements. Change the contract as you may require.
- In particular, ensure that all the blanks have been filled in, including the purchase price, effective date, territory, royalties payable, and the products that will be provided to the franchisee upon signature.
- Both franchisor and franchisee need to sign the document.
Also view: our Franchise Documents Pack
The franchise arrangement may be impacted by the Consumer Protection Act and other statutory requirements. A specialist’s advice should be sought.
Also known as: Franchise Terms and Conditions; Franchise Contract; Franchising Agreement
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