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  3. Franchise Agreement Template

Content

Franchise Agreement

Prepared for:

[Client.FirstName] [Client.LastName]
[Client.Company]

Created by:

[Sender.FirstName] [Sender.LastName]
[Sender.Company]

This franchise agreement governs [Client.FirstName] [Client.LastName]’s license to operate an authorized franchise location under the franchise company umbrella. The agreement is valid as of agreement date and lasts for a period of agreement years.

Agreement Parties

Franchise Operator

[Client.FirstName] [Client.LastName]
Name
[Client.Street][Client.Email]
StreetEmail
[Client.City], [Client.State], [Client.Zip][Client.Phone]
City, State, ZipPhone

Agreement Parties

[Sender.FirstName] [Sender.LastName]
Name
[Sender.Street][Sender.Email]
StreetEmail
[Sender.City], [Sender.State], [Sender.Zip][Sender.Phone]
City, State, ZipPhone

Franchise Fees

Name Price Qty Subtotal
 
Subtotal $0.00
Discount $0.00
Tax $0.00
Total $0.00

Franchise Agreement Terms

Owner Responsibilities
  • [Client.FirstName] [Client.LastName] will ensure that the location adheres to established franchise guidelines for appearance and cleanliness.
  • [Client.FirstName] [Client.LastName] agrees to provide all necessary documentation and materials needed to meet requirements of the franchise location.
  • [Client.FirstName] [Client.LastName] agrees to oversee the daily management and operation of said franchise location and employees.
  • [Client.FirstName] [Client.LastName] is also in agreement to maintain all upkeep of said location. [Client.FirstName] [Client.LastName] has the right to inspect the location upon notice no later than inspection notice days before any inspection.
  • Any and all failure to apply with the terms and conditions set forth may result in termination of the agreement, and further legal action as deemed necessary by [Sender.FirstName] [Sender.LastName].
Franchise Responsibilities

The company is currently in good standing under all laws and has all requisite power and authority to enter into this agreement with the owner.

To the owners current knowledge there are no legal manners or personal manners the will prohibit them from fulfilling this contracts term.

Company will provide needed support as listed below for [Client.FirstName] [Client.LastName] as agreed to in this franchise agreement.​

[Client.FirstName] [Client.LastName] agrees to pay franchise for the rights to own and operate this franchise location. Payment amount is shown in the table above and includes any deposits, discounts, and taxes related to said amount.​

[Client.FirstName] [Client.LastName] also agrees to pay said Company royalties up to [Dollar.Amount] on a monthly basis as agreed upon by both parties. Failure to pay any royalties and/or fees within agreed time period may result in termination, seizure or withdrawal of [Client.FirstName] [Client.LastName]’s franchise license.

Advertising

[Client.FirstName] [Client.LastName] will conduct and maintain all independent advertising and will pay annual marketing fee to [Sender.FirstName] [Sender.LastName] as payment for any National or International advertising required for overall franchise operation. [Sender.FirstName] [Sender.LastName] will be invoiced monthly for above mentioned advertising.

Company will provide and maintain all signage, products, etc necessary for location promotions or branding.The following items have been found necessary for the success of the franchise additional items must be requested no later than 3 days from purchase date.

ItemsDescription


Rights

Any and all trademarks and any copyrights belonging to franchise will remain [Sender.FirstName] [Sender.LastName]’s sole intellectual property at all times. [Client.FirstName] [Client.LastName] will have limited and non-exclusive rights for use of said trademarks and copyrights for the sole purposes of advertising and promotion. Any misuse of the Company’s trademarks or copyrights will result in contract termination and legal action. Any misuse of the Company’s trademarks or copyrights will result in the termination of this agreement.

Selling/Transferring of Franchise

[Client.FirstName] [Client.LastName] may sell or transfer the franchise with prior written and approved notice from company.

​Company has rights to deny any selling or transferring of ownership of the franchise location for any reason.

Confidentiality

Any and all trademarks and any copyrights belonging to franchise will remain [Sender.FirstName] [Sender.LastName]’s sole intellectual property at all times. [Client.FirstName] [Client.LastName] will have limited and non-exclusive rights for use of said trademarks and copyrights for the sole purposes of advertising and promotion.

Any misuse of the Company’s trademarks or copyrights will result in contract termination and legal action. Any use of the owners copyrighted material without prior approval will be subject to agreement termination.​

All confidential information exchanged between owner and company shall be labeled and clearly marked as confidential.

Renewal and Termination

This franchise agreement will be renewed as of renewal date. Both parties will have options to renew or cancel this Franchise Agreement at said date.

Failure to comply with any and all terms of this agreement made by the franchisee will result in termination of the agreement in its entirety.​

As a result [Client.FirstName] [Client.LastName] will agree to give up all rights to use the Franchise’s intellectual property at the location listed in this franchise agreement, including intellectual property such as logos and signage.PDF page break

Severability and Jurisdiction

Any terms found unenforceable will have the option to be replaced as deemed necessary. The exclusion of above-mentioned terms will in no way affect any other portions of this agreement.Both parties are in agreement any and all disagreements pertaining to this franchise agreement shall take place in [Franchise.State].

Terms

This agreement will come “Into Term” upon the signing of this document.

This agreement shall remain active for a period of 1 year of signing unless one of the following occur,

  1. Termination by either party in disregard for the terms and conditions.
  2. Lapse of contract due to no extension or finalization of franchise agreement.
  3. Legal proceedings from either agreeing party.

By signing this agreement both parties acknowledge understanding and agreement of all above listed terms and conditions.

Acceptance

By signing below, both parties agree to enter into, uphold, and enforce the entire terms of this franchise agreement template.

[Sender.Company]

Signature

MM/DD/YYYY

[Sender.FirstName] [Sender.LastName]

[Client.Company]

Signature

MM/DD/YYYY

[Client.FirstName] [Client.LastName]

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