Whenever someone wants to expand his business, the most common way is to do so by offering or giving franchises of that business. For this purpose, an agreement is created between parties in order to secure the process of franchising and to make it formal and official. Such an agreement is known as franchise agreement. A franchise agreement template is a document that legally binds the parties and states all the relevant terms and conditions that are agreed by both parties to the agreement. The party offering or giving the franchise is called franchiser and the party to whom it is offered or given, is known as franchisee.
A franchise agreement basically provides the franchisee with all the necessary rights to use the brand name, brand logo and goodwill of a franchiser. In a franchise agreement template, the roles and responsibilities, and all the rights and liabilities of both the franchiser and franchisee are discussed in detail. Moreover, the franchise agreement must also state the conditions in which such an agreement can be terminated. To make it legally enforceable, both the parties agree and sign the franchise agreement. In this article, you can find some special franchise agreement templates. Most of these templates are editable too so that you can easily use them for your own purposes.
Basic Franchise Agreement Template
Draft Franchise Agreement Template
Non Exclusive Franchise Agreement Template
Practical Franchise Agreement Template
Overseas Franchise Agreement Template
Franchise Consent Agreement Template
Specific Franchise Agreement Template
Master Franchise Agreement Template
Standard Franchise Agreement Template
Sample Franchise Agreement Template
Telecom Franchise Agreement Template
Simple Franchise Agreement Template
Franchise Disclosure Document Template
Detailed Franchise Agreement Template
Amended Franchise Agreement Template
Commercial Franchise Agreement Template
Elements of a Franchise Agreement Template
With mutual consent of the franchiser and franchisee, any relevant clause or term or section can be included in a franchise agreement template. No matter how a particular franchise agreement is formed, it should include the important elements that are mentioned below:
- Complete name of both the franchiser company and the franchisee.
- A detailed FDD or Franchise Disclosure Document. It is a legal pre-sale document that a franchiser must provide to a franchisee in order to comply with the requirements of Federal Trade Commission. It contains information that must be brought into the attention of interested persons before they finally decide to make investment to acquire the franchise.
- The disclosures that are necessarily required in order to comply with the laws of the state in which franchise will be established.
- Terms and conditions of the franchise agreement in detail.
- The legitimate ownership of the business.
- Goals and objectives that the franchiser and the franchisee expects to achieve by franchising.
- Consent in writing, of the party offering the franchise i.e, the franchiser.
- Complete details of duties, responsibilities, obligations, rights and liabilities of both the parties to the agreement.
- The total amount for which the franchise will be acquired and how the franchiser will pay that amount.
- The area or locality where the franchise will be established and registered.
- All other relevant clauses like termination clauses and confidentiality clauses etc.
Best Franchise Agreement Templates
Travel Agency's Franchise Agreement Template
Professional Franchise Agreement Template
Franchise Agreement Format Template
Postal Franchise Agreement Template
Collection Services Franchise Agreement Template
Special Brand's Franchise Agreement Template
Restaurant's Franchise Agreement Template
Supplier's Franchise Agreement Template
Typical Franchise Agreement Template
Confidential Franchise Agreement Template
Model Franchise Agreement Template
Prospective Franchise Agreement Template
Formal Franchise Agreement Template
International Franchise Agreement Template
Elemental Franchise Agreement Template
Professional Franchise Agreement Template
Reasons for Termination of a Franchise Agreement
As mentioned earlier, a franchiser offers franchise in order to expand and grow his business. While, a franchisee may acquire such franchise in order to run its business on the basis of already established worth and goodwill of the franchiser. However, if proper termination clauses are included in a franchise agreement template, the franchiser as well as the franchisee can put an end to such an agreement.
There can be many reasons due to which the franchiser or franchisee can terminate such an agreement. Some of these reasons are mentioned below:
Franchisee’s Reasons for Termination of a Franchise Agreement:
- When somehow, it is identified that the franchiser has made a misrepresentation or committed a fraud.
- If the franchiser is adjudicated as an insolvent or is declared bankrupt.
- The franchiser is unable to provide protection to the business opportunities of the franchisee.
- When the franchiser commits a major breach.
- If the franchiser fails to provide proper and necessary training as agreed by him at the time of formation of the agreement.
Franchiser’s Reasons for Termination of a Franchise Agreement:
- When the franchisee is in breach of the terms and conditions of franchise agreement.
- If the franchisee does not pay the royalties intentionally or if he becomes unable to pay such royalties.
- If the franchisee gets convicted for any crime, by a court of law.
- The franchiser can put an end to the agreement if the franchisee is unable to follow or comply with the franchiser’s specified operational procedures, as agreed to by him, at the time of formation of such an agreement.
- If the franchisee becomes insolvent or if he is declared as bankrupt.
- When the franchisee is failed to operate or run the business as expected.
- When the franchisee is found guilty of mis-using the license granted.
- If the franchisee does not care to take proper actions in order to remove defaults or deficiencies, even after receiving warning notices from the franchiser.