Checklist Basic Franchise Agreement Terms

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

1. Parties to the Agreement

1.1. Franchisor Details:

- Full Legal Name: {{franchisor_legal_name}}

- Company Registration Number: {{franchisor_registration_number}}

- Registered Address: {{franchisor_registered_address}}

- Authorised Representative: {{franchisor_representative_name}}

1.2. Franchisee Details:

- Full Legal Name (Individual/Company): {{franchisee_legal_name}}

- Company Registration Number (if applicable): {{franchisee_registration_number}}

- Registered Address: {{franchisee_registered_address}}

- Authorised Representative (if applicable): {{franchisee_representative_name}}

2. Grant of Franchise

2.1. Description of Franchise System: {{franchise_system_description}}

2.2. Territory Granted (Exclusive/Non-Exclusive): {{territory_description}}

2.3. Term of Franchise Agreement: {{agreement_term_years}} years, commencing on {{agreement_start_date}}.

2.4. Options for Renewal: {{renewal_options_details}}

3. Franchise Fees and Payments

3.1. Initial Franchise Fee: {{initial_franchise_fee_amount}} (payable on {{initial_fee_due_date}})

3.2. Royalty Fees: {{royalty_fee_percentage}}% of gross revenue, payable {{royalty_payment_frequency}}

3.3. Marketing/Advertising Contributions: {{marketing_contribution_percentage}}% of gross revenue, payable {{marketing_payment_frequency}}

3.4. Other Fees (e.g., training, software): {{other_fees_details}}

4. Training and Support

4.1. Initial Training Program Details: {{initial_training_details}}

4.2. Ongoing Support and Assistance: {{ongoing_support_details}}

4.3. Manuals and Operational Guides: {{manuals_and_guides_provision}}

5. Obligations of the Franchisor

5.1. Provision of intellectual property use (trademarks, copyrights): {{ip_provision_details}}

5.2. Supply of goods/services: {{supply_of_goods_services_details}}

5.3. Marketing and brand development: {{marketing_and_brand_development_details}}

6. Obligations of the Franchisee

6.1. Adherence to operational standards: {{operational_standards_details}}

6.2. Reporting and record-keeping requirements: {{reporting_record_keeping_details}}

6.3. Compliance with franchisor policies: {{compliance_with_policies_details}}

6.4. Maintenance of premises and equipment: {{premises_equipment_maintenance_details}}

7. Intellectual Property

7.1. Ownership of Trademarks, Trade Names, and Logos: {{ip_ownership_details}}

7.2. Permitted Use by Franchisee: {{permitted_ip_use_details}}

7.3. Prohibition on Unauthorised Use or Registration: {{prohibition_on_unauthorised_use_details}}

8. Termination of Agreement

8.1. Grounds for Termination: {{grounds_for_termination_details}}

8.2. Notice Periods: {{notice_periods_details}}

8.3. Post-Termination Obligations (e.g., de-branding, return of manuals): {{post_termination_obligations_details}}

9. Dispute Resolution

9.1. Governing Law: {{governing_law_jurisdiction}}

9.2. Mediation/Arbitration Clause: {{dispute_resolution_clause_details}}

9.3. Jurisdiction for Legal Proceedings: {{legal_proceedings_jurisdiction}}

Signature Block

_____________________________

Franchisor's Authorised Signature

Name: {{franchisor_signature_name}}

Date: {{franchisor_signature_date}}

_____________________________

Franchisee's Authorised Signature

Name: {{franchisee_signature_name}}

Date: {{franchisee_signature_date}}