Master Franchise Agreement for operation within a certain territory between a franchisor and the franchisee. The contents of this sample franchise agreement are in favour of the Franchisee.
The Franchisor is engaged in a field of business and has spent substantial time, effort and money to develop a distinctive system of business operation and build up a brand name under the Franchise Agreement. Such systems usually comprise of, inter alia, mature management methods, operational procedures, techniques and marketing strategies.
The Franchisee desires to obtain the benefit of the knowledge, skill and experience of the Franchisor and the rights to operate with the insignia of the Franchisor. In addition, since the Franchisor has already garnered a substantial reputation and goodwill in their field of business, the Franchisee can benefit from the usage of an established brand name.
The specific rights and liabilities of both parties are set out in the terms of the Franchise Agreement. A Franchisee should note that most Franchisors have high standards and uniform specifications that Franchisees must abide by.
The Franchisor hereby grants the Franchisee upon the terms and conditions herein contained the right and license to use their Proprietary Marks only:
(a) in the Business;
(b) at and from the Premises;
(c) within the Territory;
(d) under the Permitted Name;
(e) in accordance with the System and the Operating Manual
This Franchise Agreement should be carefully read by the Franchisee and the Franchisor.
Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid future disputes, both parties may wish to have their signature witnessed.
Terms and Conditions and rights and liabilities should all be clearly stated in the Franchise Agreement.
If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.
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Please get all the parties to review the document carefully and make any final modifications to ensure that the details are correct before signing the document. Each party should have a copy of the executed document.
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