This comprehensive franchise agreement is for use where one party, the franchisor, wishes to effectively licence out his business to another, the franchisee. In return for being permitted to use the trade marks and other intellectual property of the franchisor, the franchisee will pay a fee.
About this document
This is a comprehensive Franchise Agreement is for use where one party, the franchisor, wishes to effectively licence out his business to another, the franchisee. In return for being permitted to use the trade marks and other intellectual property of the franchisor, the franchisee will pay a fee.
In Australia, there are no rules or regulations for the terms of a franchise agreement. This means that you are free to negotiate the best deal. This is a complete franchise agreement – you simply delete what is not required in order for you to negotiate what you want.
The agreement deals with confidentiality and intellectual property in detail, thus protecting the interests of the franchisor. Further, this agreement specifically sets out the responsibilities of both parties, allowing a smooth and flexible relationship and one where fewer disputes are likely to occur.
Franchising has pros and cons, as does running any type of business. The franchisor is able to grow their business by handing over responsibility to someone else. Thus, he takes on less responsibility than if he were opening a new branch himself. The franchisor doesn’t have to hire staff and manage new premises, branches or outlets themselves. The franchisee benefits from managing what is effectively their own business. Not only that, their new business is one that is proven and tested. The franchisee is able to make use of the franchisor’s expertise and experience.
Application and features
Fair to both parties;
Allows for the training of the franchisee and his employees;
Suitable for any business, whether you sell goods or services;
Complete with explanatory and guidance notes in plain English.
Summary of the agreement;
Grant of Rights, including renewal;
Training, development and quality assurance;
Insurance by franchisee;
Maintenance of accounts and records;
Advertising and promotion: who should promote what;
Confidentiality by both parties;
Payments: how much;
Minimum sales requirement;
Termination and effects of termination of the agreement;
Intellectual Property: belongs to whom?
Indemnity and warranties;
Schedule 1: Trademark usage
Schedule 2: Business allowed
Schedule 3: Products / Services to be sold
Schedule 4: Payments: when and how
Schedule 5: Property
Schedule 6: Minimum Sales Requirement
Other appropriate legal provisions.
Click here to obtain a franchise agreement: