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Sample restaurant master franchise agreement

This master franchise agreement template has 24 pages and is a MS Word file type listed under our legal agreements documents. Master Franchise Agreement Template. Document description. Related documents. Master Agreement Sale of Merchandise. Restrictive Covenants for Employment Agreements. Checklist Basic Franchise Agreement Terms. Worksheet Franchise Comparison. Contract on Retaining Legal Counsel.

The Area Franchise Agreement

Contract for Logistics Services. Contract for the Storage of Goods. Development Agreements Multimedia Publisher. Agreement to Rescind Contract of Sale. Professional-looking formatting. Compatible with all office suites. File type. Legal Agreements. Get Started Free. Document Types Included. Business Plans. Business Proposals.

Business Policies. Business Agreements. Business Procedures. Business Checklists. Business Guides. Business Resolutions. Business Forms. Business Spreadsheets. Business Worksheets. Business Letters. Press Releases. About Biztree. About us. Privacy policy. Cookie policy.The original documents were scanned as an image. The original file can be downloaded at the link above. Florida limited liability company hereinafter referred to as "we" or "us"and. Through the development and operation of our businesses, we have accumulated extensive knowledge of, and experience in the business of selling coffee, coffee beans, tea, beverages, food and related accessories and items and have developed a unique system relating to the establishment, development and operation of specialty stores the "Barnie's System" identified by certain trademarks and service marks the "Marks".

You have requested that we grant you a Franchise to own and operate a Store at the Location identified or to be identified in this Agreement. We have agreed to grant you the Franchise in reliance on the information you have provided to us in your request and in reliance on your agreement to operate the Store in accordance with this Agreement.

Grant of Franchise. We grant you, and you accept, the Franchise to operate a Store at the Location in accordance with and as part of the Barnie's System.

If the Location has not been determined as of the execution of this Agreement, you and we will, once the Location has been approved, complete a new Exhibit A identifying the specific Location and replace the current Exhibit A with the new exhibit. You acknowledge and agree that the Franchise, and the rights associated with the Franchise, are limited to the operation of the Store at the Location and that you are not granted any territorial protection or exclusivity around the Store.

Reservation of Rights. Your Franchise includes only the specific rights granted in this Agreement. We reserve for ourselves and our affiliates, all other rights and activities, even if the exercise of those rights competes with your Store, including, without limitation: a the right to operate or license others to operate Stores at places other than the Location subject.

Your rights under this Agreement will extend for a period of time corresponding with the term of the original lease or sublease of the Location, not to exceed 10 years, unless you or we terminate earlier as provided in this Agreement.

Right to Renew. You will have the right renew the Franchise for one 1 additional term equal to the lesser of a the renewal term of the lease or sublease of the Location or b 10 years, if you:.

22+ Franchise Agreement Examples – PDF, Docs

You must exercise your right to renew by giving us written notice of your intent to renew not more than one 1 year nor less than days prior to the expiration of the primary term. If we determine that you are not entitled to renew because of your failure to satisfy one or more of the above conditions, we will give you notice of that determination at least 90 days prior to the expiration of the term. Store Premises Must be Approved. You may only open and operate the Store at the approved Location identified in Exhibit A.Start by clicking on "Fill out the template".

Your document is ready! You will receive it in Word and PDF formats. You will be able to modify it. A Franchise Agreementalso sometimes called a Franchise Business Agreementis a document between two main parties, the party that will be franchising out their already well-developed business model, called the franchisor, and the party that will be agreeing to certain terms and conditions in order to create their own franchised business based on that business model. In a franchise agreement, the franchisor lays out the expectations and requirements for a franchisee to run a business under their brand name.

It can be any type of business; restaurants or small retail outlets are often run as franchises. Within these agreements, the franchisor and the franchisee each outline their expectations for behavior and agree to the bounds of the relationship between them.

Mostly, it is the franchisor describing rules the franchisee must followbut there are also certain portions of the agreement that relate to the protection of the franchisee. A Franchise Agreement helps the parties delineate the most important details of their relationship: things such as a description of the franchisor's business, quality control standardsand of course, fee information for the franchisee. A good Franchise Agreement will also have both parties covered in case anything goes wrong: things such as dispute resolution and governing law should be included.

This document should be used for a franchisor about to enter into a business relationship with a new franchisee or for a franchisee looking for a document to present to a potential franchisor for agreement. In this document, pertinent identifying details will be included, such as whether the parties are individuals or businesses, and their respective addresses and contact information.

Information on the most important characteristics of the agreement between the parties will also be included, like duration of the agreement, fee information, and even how the franchisor's branded marks and copyrights should be treated.

The parties will be able to choose several specifications for how the agreement should be formed, including things like what obligations the franchisor owes the franchiseeif any. This Franchise Agreement is a robust document that will help ensure the relationship between the franchisor and franchisee flows smoothly.

Franchise agreements in the United States are subject to both Federal laws and specific state laws, which cover general contract principles like formation and mutual understanding.

The Federal Trade Commission has a rule called The Franchise Rulewhich covers certain disclosures which must be made to franchisee before the franchisee signs an agreement. There are several states which mandate The Franchise Rule, requiring notice, filing or registration of a franchisor's disclosure document, called a Franchise Disclosure Document. The requirements in each of these states differ as to whether registration is required, or notice, or filing, and some may have additional specific requirements.

Please be aware that this Franchise Agreement is only an agreement and does not contain the required disclosure document under The Franchise Rule. At the end, you receive it in Word and PDF formats for free. You can modify it and reuse it. Back to top. Home Documents. Commercial Activity. Franchise Agreement. Franchise Agreement Rating: 4. Formats Word and PDF. Price FREE. Size 13 to 20 pages. How does it work? Choose this template Start by clicking on "Fill out the template".

Complete the document Answer a few questions and your document is created automatically. Save - Print Your document is ready! Franchise Agreement A Franchise Agreementalso sometimes called a Franchise Business Agreementis a document between two main parties, the party that will be franchising out their already well-developed business model, called the franchisor, and the party that will be agreeing to certain terms and conditions in order to create their own franchised business based on that business model.

How to use this document This document should be used for a franchisor about to enter into a business relationship with a new franchisee or for a franchisee looking for a document to present to a potential franchisor for agreement.AND WHEREAS by reason of a uniform business format or system and high standards of quality and service, Frenchiser has established an excellent business reputation, created a substantial demand for its products and services and build up valuable goodwill.

This payment will be made on monthly basis. In no event shall Frenchiser be liable for financial loss, including consequential or special damages on account of delay due to any cause. In the event that any party hereto is delayed or hindered in the performance of any act required herein by reason of strike, lock-outs, labour troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reasons of a like nature not the fault of such party, then performance of such act shall be excused for the period of the delay and the period for performance of such act shall be extended for the period equivalent to the period of such delayup to a maximum of three 3 months.

All disputes arising under or out of this Agreement or in any way connected with this Agreement shall be subject to the jurisdiction of the courts of Delhi. Franchise Agreement Format Sample drafted by our online legal experts.

4 Pillars of a Master Franchise Agreement

Contact us for all kinds of legal documents online. Spread the legal knowledge.The Master Franchise Agreement MFA is a type of franchise agreement that allows the Master Franchisee the right to own and operate more than one establishment called unitand the right to sub-franchise the right to open units to other independent businesses called Franchiseesall during a specified time within a specific area.

There are three participants in this contract type: the Franchisor who owns the marks, the Know-How Franchise Handbook and the products; the Master Franchiseewhich is going to develop the franchise business through searching for, selecting and controlling the franchisees; and the Franchisees, who are the people who manage the points of sale.

It is also common, however, for the Master, to manage certain establishments, particularly the first one which is created.

sample restaurant master franchise agreement

This type of franchise agreement is often well suited for international developmentas the Master Franchisee is often far more knowledgeable and connected in the culture and business of the designated territory.

However, the Franchisor loses a substantial part of control over the system resulting from the transfer of responsibility and the enforcement of systems standards may be more difficult in this type of relationship. Accordingly selection of the Master Franchisee is a critical endeavour to the success of the relationship.

Below, we offer a checklist of clauses typically to be included in a Master Franchise Agreement. It is recommended that the following key elements be included, at least:. The mutual objective of the agreement will typically be to further develop the Franchise System in a specific geographical territory and to make this possible by the Franchisor granting the Master Franchisee the right to use the Franchise System, a trademark license and a license for the use of any other intellectual property rights and to grant franchises to sub-franchisees within the limits provided for in the agreement.

The geographical territory assigned to the Master Franchisee should be clearly defined. The parties can opt for expansion or reduction of the territory dependent on the attainment of specific and clearly defined targets either in terms of turnover or the number of sub-franchised units opened or a combination thereof.

sample restaurant master franchise agreement

In general Master Franchisees will want to granted exclusivity for the assigned territory in return for the investments they are to make for the development of the franchise business in that territory. If no limitations are made with regard to the exclusivity, this usually means that the Master Franchisee has the unconditional right to franchise the business in the assigned territory to the exclusion of any other third party including the Franchisor itself. MFAs will usually contain a development schedule in which the developments of the number of franchise units to be opened in the assigned territory are listed.

It is in the interest of all parties involved to approach this subject in a realistic manner in order to keep potential conflicts to a minimum. The agreement should provide solutions for the situation where realistic minimum developments are not obtained e. The first is the initial fee for the rights granted. The second is an ongoing Franchise Fee often also referred to as a royalty or continuing fee for the use of the Franchise System and ongoing support service of the Franchisor.

An initial fee does not have to be a lump sum all paid up front. In many Franchise Systems, the initial fee is divided into equal tranches, or small first payment and then pay per-Unit opened. The franchise fee is a charge for the continuing use of the rights granted and support provided. It is quite common that the franchise fee is calculated in the form of a percentage of the revenues of the Master Franchisee.

sample restaurant master franchise agreement

However, parties are free to agree on and use different methods to determine this fee. These may vary from payment of monthly fixed fees to variable fees either on sliding scales or not calculated on the basis of revenues, purchases or sales, etc. In many cases, the Master Franchisee is put under an obligation to use the standard Sub-Franchise Agreement of the franchisor and to ensure that it complies with local mandatory laws.

Another option is that the Master Franchisee may have the right to draft a standard Sub-Franchise Agreement provided that this standard agreement contains a number of clauses that are considered as mandatory by the Franchisor. Advertising is one of the vital factors that determine the success of a Franchise System. MFAs typically provide that the Master Franchisee and the Sub-Franchisees must contribute to a local advertising fund set up by the Master Franchisee, as well as a regional or global advertising fund administered by the Franchisor.

Aside from a provision that makes the MFA will automatically terminate at the expiry of the agreed term unless the conditions for a renewal, if agreed, have been mettermination by either party is to be provided for in the MFA. Early termination by the Franchisor in the event of a material breach by the Master Franchisee or automatic termination in the event of bankruptcy, insolvency, etc. The choice of the law applicable to an MFA will usually be the law of the country in which the Franchisor is domiciled.

However, careful consideration must always be given first to a number of relevant factors in order to arrive at a well-motivated and useful choice.

Franchise Agreement

International commercial arbitration will typically be the most appropriate solution when a dispute arises under an international MFA. Arbitration is generally less costly and time-consuming than litigation, offers a flexible and neutral forum, and process and allows the parties to choose an arbitrator with relevant subject-matter expertise. To obtain the Master Franchise Agreement Template click here:.

RIGHTS GRANTED The mutual objective of the agreement will typically be to further develop the Franchise System in a specific geographical territory and to make this possible by the Franchisor granting the Master Franchisee the right to use the Franchise System, a trademark license and a license for the use of any other intellectual property rights and to grant franchises to sub-franchisees within the limits provided for in the agreement.G The development of the System is by virtue of having acquired knowledge and international experience and skill in electro and hand massaging, oiling, manicuring, tanning and otherwise beautifying tired and aching feet at the clients home or work place and other activities related to the same, including amongst other things water and air jetting of every description.

In addition, the Franchisor owns valuable goodwill in slogans, distinctive motor vehicle markings and other identifying characteristics. K The success of the Franchisor within the Territory depends amongst other things upon the provision by the Master Franchisee and its Franchisees of a prompt efficient and satisfactory and courteous service to the public using the materials which are the subject matter of the franchise and detailed in Schedule II hereto and the Equipment, which is also detailed in Schedule II hereto, and upon the vigorous cultivation and extension by the Master Franchisee of the market for the Services.

L The Master Franchisee has no prior experience of foot restoration services but desires the right to develop the Business within the Territory, including the rights granted in Clause 1 below.

Rights granted 1 Subject to and in accordance with the terms hereof the Franchisor hereby grants to the Master Franchisee In the event of any dispute, the authentic text of the Manual shall be the copy kept as such by theFranchisor at its head office.

The Manual shall at all times remain the property of the Franchisor. TheMaster Franchisee hereby acknowledges that the copyright in the Manual is invested in the Franchisor.

7+ Master Franchise Agreement Templates – PDF, Word, Google Docs, Apple Pages

No charge will be made by the Franchisor or other Master Franchisees of the Franchisor for attendance at conventions, seminars or meetings. Render prompt workmanlike, courteous and willing service and conduct the Business in such a manner as not to detract from or bring into disrepute the marks. Such books of account shall include all supporting documents and correspondence relating to the Services which shall be made available to the Franchisor and any person authorised by it at such times and place as the Franchisor may reasonably require for the purposes of inspecting the same.

The Master Franchisee shall permit the Franchisor and any person authorised by it to enter at all reasonable times and upon reasonable notice upon the premises on which may be any such book of account voucher supporting document or correspondence.

In the event of the Master Franchisee failing in any year to use best endeavours to open the outlets stated in this clause, the Franchisor may within 90 days from the end of the relevant year serve a notice in writing on the Master Franchisee terminating its right to open any future outlet other than ones in respect of which a Franchise agreement has previously been granted.

The training course will last for a period of two working weeks, and will be conducted at such place or places in Europe as the Franchisor shall require. The training course will be conducted in English, will last for a period of two working weeks, and will be conducted at such place or places in Europe as the Franchisor shall require.

The Master Franchisee and the relevant Sub-Franchisee shall be responsible for the payment of Continuing training The Franchisor will train any replacement General Manager of the Master Franchisee in the operation of the Services. Invoicing The Master Franchisee undertakes:- a to provide the Franchisor not later than ten days after the end of each monthly accounting period, with a written detailed summary showing the aggregate and gross invoice value of all Services provided by the Sub-Franchisees during such period.

The marks 1 The Master Franchisee shall join the Franchisor in making any applications for the Master Franchisee to become a registered User. Termination 1 The Franchisor shall have the right to terminate this Agreement, subject to Clause 15 2 below, without prejudice to any other rights or remedies available under this Agreement, if the Master Franchisee shall.

If any default neglect or failure occurs more than twice in any period of twelve consecutive months, this shall be deemed to be a persistent default, failure or neglect. Consequences of termination Upon the termination of this agreement: a The Master Franchisee undertakes:. For and on behalf of the Master Franchisee. Contact us. Useful links British Franchise Association Sell or buy an existing franchise business. Search our site.As an attorney, I rarely find a time when I am not advocating for one side or the other in the negotiations leading up to a new master franchise relationship.

Building a strong foundation in a master franchise relationship is rooted in a transparent and mutual due diligence period, during which both parties have an opportunity to investigate and ask questions to determine whether or not there is a fit.

This period also helps to clarify how the parties handle brand development and the primary business terms of the relationship should they decide to move forward.

When representing the franchisor, that means asking questions that go beyond the liquidity and overall financial position of the potential master, including an investigation into: the prior experience of the master and its affiliates and principals in the applicable industry e.

Franchisors should also have a good look in the mirror to evaluate whether the franchise system, infrastructure and brand culture are replicable in the contemplated territory. For a potential master, the main focus should be on the historical performance of the brand and what tools and resources the franchisor has available to help the master replicate success in the proposed territory.

Among other things, the prospect should ask questions regarding: the historical development of the brand both domestically by the franchisor, and internationally via other master franchises; whether the franchisor has protected the marks in the jurisdictions that will make up the territory; the type of sourcing and distribution needed for the franchise system to work, and whether the franchisor has experience or plans with regards to ensuring sourcing and distribution in the contemplated territory; the initial and ongoing training programmes and where such training will be provided given barrier to U.

Franchisors, especially those with prior experience in international master deals, know that the prospect groups that conduct the most thorough due diligence will typically be the groups that make the best stewards of their brand if and when a relationship is formed.

Even if they also tend to be the groups that try to negotiate the most with respect to the underlying agreements. If a mutually active and transparent due diligence period is the foundation of a successful master relationship, then the pillars that uphold that relationship are the primary business and development terms negotiated as part of the master franchise agreement. The first pillar of a master franchise relationship is the size of the territory that the prospect will be granted and the corresponding development schedule.

In order to ensure a practical meeting of the minds, we often find ourselves counselling clients to be realistic in terms of territory, while the client — whether a franchisor or potential master — will push for the largest area they can negotiate.

In other words, a higher market to saturate. As counsel negotiating for either party, however, we often advise that our clients seek to grant or purchase a reasonably-sized territory which is coupled with a realistic development schedule that is based on the demographics and experience of similar brands in that territory.

If either party becomes concerned about the territory size and corresponding commitment, we typically recommend that the parties agree to an initial area that will be granted under the agreement, while also granting the potential master a right of first refusal or other option to develop surrounding jurisdictions down the road if certain conditions are met including compliance with the development schedule.

This allows the parties to avoid a situation where a the territory is too big for the potential master to fully exploit the entire area, b the development schedule cannot be met, or c either or both parties are not able to provide the necessary infrastructure and support throughout the entire area.

Any one of these issues could leave the master franchise relationship in shambles. The second pillar of a strong master franchise structure are the marks that are being licensed by the franchisor. Unlike the territory issue above, the parties are not typically pulling for the same position here.

The potential master wants assurances that the brand, or mark, at issue is available and registered for use in the territory before they pay the franchisor any type of master franchise fee. Meanwhile the franchisor is often reluctant to expend the funds to get such marks registered until it knows that the potential master has signed a master franchise agreement or otherwise committed to moving forward.

In order to align the parties, we recommend a middle ground. First, the franchisor obtains and reviews a search report for the primary marks to help determine that there are not confusingly similar marks already being used in the territory, and provides the potential master with that opinion prior to signing.

Next, the parties agree that the franchisor is not making any representations about such marks other than what it found, or did not find, in the report.

Finally, if the parties decide to proceed, they split the costs associated with getting the marks registered in the jurisdictions comprising the territory. Regardless of how the parties agree to protect the marks, the franchisor should rightfully own the marks and any registrations licensed as part of the master franchise.

The third pillar is effectively dealing with distribution and sourcing, especially in retail or restaurant concepts that involve the sale and distribution of proprietary or branded items.


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comments so far

Meztijinn Posted on 10:12 pm - Oct 2, 2012

Ist Einverstanden, dieser prächtige Gedanke fällt gerade übrigens