Franchise Contract
Franchise Contract
Franchise Contract
1.1 Franchisee will own and operate a location of the Company at {address of
location}. This location {is/is not} currently set up to be a franchise of the
Company. {If not, indicate the plans for remodeling the location to fit with
the Company’s specifications}.
1.2 This Agreement between the Franchisee and the Company begins on the day
of the signing of this contract, and continues until {end of the first term of the
franchise agreement}.
1.3 The Franchisee’s territory will cover {area of the Franchisee’s territory}.
Section 2: Payment
2.1 Franchisee will pay the Company {amount in dollars} for the rights to own
and operate this franchise. This sum is payable {details of the payment plan}.
2.2 Franchisee will pay the Company royalties of {amount in dollars} every
{week, month, etc.}, payable to {specific account, or a method in which
Franchisee will pay the royalty}.
2.3 Failure to pay any royalties and/or fees within {amount of time} of the due
date will result in {termination, late fees, etc.}.
3.1 Franchisee will oversee the day-to-day management and operation of the
franchise location, while maintaining the outward appearance customers have
come to expect from the Company.
3.2 Franchisee is responsible for maintaining the upkeep of the location. The
Company will inspect the location every {week, month, year, etc.}. Failure to
comply with the Company’s standards in this regard, as noted in {company
handbook, attached addendum, etc.} will result in {punishment for not
complying with the standards}.
4.2 Company will also provide support in the form of {ways in which the
company will support the franchisee}.
Section 5: Advertising
5.1 Franchisee will maintain its own advertising campaign locally, and pay
{amount in dollars} for the {national/international} advertising of the Company
every {week, month, year, etc.}.
Section 6: Rights
6.1 The trademark and any copyrights belonging to the Company will remain the
property of the company at all times. Franchisee has the right to use the
trademarks and copyrights for the purposes of advertising and promotion,
provided that {conditions Franchisee must meet to use these items}.
Franchisee may sell or transfer the franchise {ways in which Franchisee may
sell or transfer the franchise, if applicable}.
8.1 This franchise agreement is up for renewal on {date}. Should both parties
agree to renew at this time, a new contract will be drafted and signed. If either
party wishes to terminate the agreement, it is free to do so at this time.
8.2 Company has the right to withdraw the Franchisee’s rights for the franchise at
any time if Franchisee fails to comply with ALL company standards. The
Franchisee will give up all rights to the franchise, and will not receive any
compensation as a result.
9.2 Franchisee and Company acknowledge that this Agreement is subject to the
laws and regulations of the state of {State}.
Signed:
___________________________ __________________________
Franchisee Name Company Representative Name
___________________________ __________________________
Franchisee Signature Company Representative Signature