This master franchise agreement template has 24 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our master franchise agreement template:
MASTER FRANCHISE AGREEMENT This Master Franchise Agreement ("Agreement") is made and effective this [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Company"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SUB-FRANCHISOR NAME] (the "Sub-franchisor"), an individual with his main address located at OR a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Company and certain of its Affiliates own and operate certain proprietary and other property rights and interests of [FRANCHISE NAME] throughout [COUNTRY] which, among other things, rent, sell and market [PRODUCT/SERVICE] to the [GENERAL PUBLIC OR COPORATIONS OR GOVERNMENT]; and WHEREAS, Company and certain of its Affiliates acquire, produce, license market and sell [PRODUCT/SERVICE]; and WHEREAS, Company's processes, trade secrets and procedures for the operation of [FRANCHISED BUSINESS], including advertising, sales techniques, materials, signs, exterior decoration and decor, personnel management and control systems, bookkeeping and accounting methods, and in general, a style, system and method of business operation developed through and by reason of its prior business experience (the "System"). WHEREAS, Company desires to expand and develop the Franchised Business, and seeks a Master Franchisee who will open and operate, or procure and assist Sub-franchisee s ("Sub-franchisees") to open and operate, numerous [FRANCHISE NAME] conducting business under the Trademarks and System within the Development Area, as defined herein. WHEREAS, Sub-franchisor desires to build and operate [FRANCHISE NAME], and procure, qualify, train and assist Sub-franchisees to build and operate [FRANCHISED BUSINESS], and Company desires to grant to Sub-franchisor the right to build and operate, and procure, qualify, train and assist the Sub-franchisees to build and operate, [FRANCHISED BUSINESS] in accordance with the terms and upon the conditions contained in this Agreement. NOW, THEREFORE, based on the above premises and in consideration of the covenants and agreements contained herein, and intending to be legally bound, the parties agree hereto as follows: GRANT OF MASTER FRANCHISE Company hereby grants to Sub-franchisor, and Sub-franchisor hereby accepts, the right during the Term to open and operate [FRANCHISED BUSINESS], and to procure, screen, qualify, train and assist Sub-franchisees to open and operate [FRANCHISED BUSINESS], in the Development Area more fully described in Exhibit "A" which is annexed hereto and by this reference made a part hereof, upon the terms and subject to the conditions of this Agreement. AGREEMENT TERM The term of this Agreement shall be for the period (the "Term"), commencing as of the date of this Agreement. Each year of the Term, as measured from the date of this Agreement, is a "Contract Year." 2.1 Additional Development If Company shall determine that further development of the Development Area following the Term is desirable, Company shall notify Sub-franchisor in writing at least [NUMBER OF MONTHS] prior to the expiration of the Term, of Company's intention to develop additional [FRANCHISED BUSINESSES] in the Development Area and deliver a plan for such development over a five-year-period. Subject to the conditions set forth in Section 2.2 of this Agreement, Sub-franchisor shall have a prior right to undertake the additional development which Company shall have set forth in its notice to Sub-franchisor, which right of additional development shall be exercised only in accordance with Section 2.3. Such right of additional development by Sub-franchisor shall arise upon the expiration of each successive Master Franchise agreement between Company and Sub-franchisor for so long as Company concludes that development of additional [FRANCHISED BUSINESSES] is commercially appropriate in the Development Area. Subject to the rights of first refusal set forth in subparagraph (a) below, if such right of additional development is not exercised by Sub-franchisor, Company or its nominee(s) may construct, equip, open and operate additional [FRANCHISED BUSINESSES] in the Development Area upon the expiration of the Term. If Company shall have notified Sub-franchisor prior to the expiration of the Term that further development of the Development Area is not then desirable, Company's right to construct, equip, open and operate additional [FRANCHISED BUSINESSES] in the Development Area, or to license any third party to do so, shall be subject to the Sub-franchisor's right of first refusal with respect thereto, which shall be exercised, if at all, in the following manner: In the case any additional [FRANCHISED BUSINESSES] are to be developed by the Company, Company shall serve upon Sub-franchisor a written notice setting forth the proposed location of the [FRANCHISED BUSINESS], and two (2) copies of the Company's then current form of Franchise Agreement. Sub-franchisor shall have thirty (30) days following Company's service of such notice within which to enter into a lease for the Location and to execute and return both copies of the Franchise Agreement to Company in the manner described in Section 5.4 below, together with the franchise fee payable with respect thereto. If Sub-franchisor shall fail to exercise its said right of first refusal, as aforesaid, Company may thereafter open [FRANCHISED BUSINESS] at such location. With respect to any proposed area development agreement (pursuant to which the Company grants the right to open, but not sub-franchise, two (2) or more Franchises within a defined development area), or Master Franchise agreement (pursuant to which the Company grants the right to open, or sub-franchise others to open, two (2) or more Franchises within a defined development area), Company shall serve upon Sub-franchisor a written notice of its intention to enter into such agreement, together with two copies of the proposed area development or Master Franchise agreement, as applicable. Sub-franchisee shall have the right, thirty (30) days following the Company's service of such notice, to execute and return to Company both copies of the proposed area development or Master Franchise agreement, together with any fees payable to Company pursuant to the terms thereof. If Sub-franchisor has satisfied the conditions described in Section 2.2, Company shall execute and return one (1) copy of the area development or Master Franchise agreement to Sub-franchisor. If Sub-franchisor fails to exercise its right of first refusal as aforesaid or fails to satisfy the conditions described in Section 2.3, Company may thereafter enter into an area development or Master Franchise agreement, with such third party. (iii) The Sub-franchisor's rights of first refusal described herein shall be effective only if, and for so long as, a management agreement is in effect between Company and Sub-franchisor pursuant to Section 6.5 below. 2.2 Exercise of Right of Additional Development At the time Company delivers to Sub-franchisor Company's written notice of its intention to undertake additional development in the Development Area, Company shall also deliver to Sub-franchisor two copies of the then-current Master Franchise agreement. The new Master Franchise agreement, which may vary substantially from this Agreement, will reflect Sub-franchisor's new development obligation consistent with Company's plan for additional development set forth in its notice to Sub-franchisor. Within thirty (30) days after Sub-franchisor's receipt of the new Master Franchise agreement, Sub-franchisor shall execute two copies of the Master Franchise agreement and return them to Company. If Sub-franchisor has so executed and returned the copies and has satisfied the conditions set forth in Section 4
