Franchise Agreement (A222)

Who can use this Franchise Agreement?

Any business owner who wants to expand their business can use this franchise agreement.

What is this Franchise Agreement for?

The franchise agreement sets out the basis on which the franchisor  authorises the franchisee to operate the business using the franchisor’s name, products and brand.  The franchise agreement is suitable as a template for a wide range of businesses – from a  restaurant to a particular service to the public, such as valeting cars.

What are the main issues?

Financial arrangements: these will usually include a basic franchise fee to be paid in advance and then an annual service fee.  Where products are bought from the franchisor, the pricing of these will also be covered.

Franchise details. The agreement is likely to have schedules that describe in detail the nature of the franchise and the obligations of the franchisee to adopt the brand and operating model.  it will also specify the support and services that the franchisor will provide.

Term & Termination.  The initial length of the franchise and renewal arrangements will be set out. Also, the right of each party to terminate and the consequences of termination. These can be quite complicated.

Sale of franchise. Sometimes the franchisee is able to sell the business to a new franchisee and this, again, need some detailed consideration.

What detailed terms does the Franchise Agreement contain?

This fourteen page document contains 18 clauses covering

• definitions
• payment of the franchise fee and grant of the franchise
• renewal of the term
• franchisor’s obligations
• franchisee’s obligations
• sale of the franchise business
• termination
• termination consequences
• title
• severance
• the franchisor’s right to assign
• goodwill
• notices
• no partnership or agency
• waiver
• the scope of the agreement
• value added tax
• jurisdiction

For more information on each of these sections, see our Explanatory Notes  which you will receive when you download the document from our website.

If you want to see these Notes before you buy, please let us know by using our contact form

For information on signing documents see our Contract Signing page

When I download the document, can I change it and/or use it more than once?

Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs

Legal support

ContractStore supplies templates and is not a law firm.  But all our templates are written by experienced lawyers so we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.

And if you want to contact us see our Contacts page.