Franchise Agreement Template

FRANCHISE AGREEMENT

Effective Date: 9 Nov 2026

This Franchise Agreement (“Agreement”) is made between:

Grant of Franchise

• The Franchisor grants the Franchisee the right to operate a business under the Franchisor’s brand/trademark, operating model and system (the “System”), in accordance with the terms of this Agreement.

• The Franchise is granted for the territory / area defined as: Territory Description

• The Franchisee agrees to operate strictly in compliance with the System, brand standards, operating procedures, and quality requirements specified by the Franchisor.

Term & Renewal

• Term: The initial term of this Agreement is Initial Term Years years, commencing on Start Date and ending on End Date.

• Renewal: The Franchisee may apply for renewal under conditions set by the Franchisor at least Renewal Notice Period Days days before end of term. Renewal will be subject to compliance history, fees, and renewal terms agreed at that time.

Franchise Fees & Payments

The Franchisee agrees to pay the following fees as part of this Agreement. All amounts must be paid in accordance with the payment terms, and fees may be adjusted by the Franchisor with prior written notice of Fee Change Notice Days days.

Payment Terms

• All invoices must be paid within Payment Terms Days days of issue.

• Late payments may incur a late fee of Fees Late Fee Rate% per month or the maximum permitted by law.

• The Franchisee must keep accurate, up-to-date financial records for royalty calculation and reporting.

• The Franchisor reserves the right to audit the Franchisee's sales and financial reports with Audit Notice Days days’ notice.

Obligations of Franchisor

The Franchisor agrees to:

• Provide initial training to the Franchisee and staff covering operations, brand standards, service/product quality, and procedures;

• Supply brand assets, operational manuals, marketing materials, support for marketing/launch (if agreed);

• Offer ongoing support, updates to System, quality control, and guidance for compliance;

• Maintain overall brand integrity and not engage in conflicting business activities within the Franchisee’s territory without consent.

Obligations of Franchisee

The Franchisee agrees to:

• Operate the business using the approved System, branding, and quality standards;

• Maintain premises, equipment, staff, and operations as required;

• Keep accurate financial and operational records and provide periodic reporting to the Franchisor;

• Comply with all applicable laws, regulations, health/safety codes, licensing, permits, and requirements;

• Participate in periodic audits, inspections, or quality assessments as required;

• Not alter products, services, or brand offerings without written approval from Franchisor.
  Approvals & Creative Control

Intellectual Property & Branding Rights

• The brand name, trademarks, logos, service marks, trade dress, operating manuals, and all associated IP remain the exclusive property of the Franchisor.

• Franchisee is granted a limited licence to use the brand and associated IP solely for the duration and purpose of operating the franchise under this Agreement.

• Upon termination or expiration of this Agreement, all license rights terminate, and Franchisee must cease use of all brand IP and return or destroy associated materials.

Training, Quality Control & Compliance

• Franchisee must complete initial training before opening the business.

• Franchisee must adhere to quality standards, operating procedures, customer service guidelines, and brand image requirements at all times.

• Franchisor reserves the right to perform periodic inspections, audits, or compliance checks, with prior notice of at least Inspection Notice Days.

Insurance & Liability

• Franchisee must maintain public liability insurance, property insurance, and any other insurance required by law for the premises and operations. Policy details: Insurance Details

• Franchisor is not liable for actions, negligence or misconduct of Franchisee, staff, or third-parties once Franchisee commences operations.

• Franchisee indemnifies and holds harmless the Franchisor from any claims, loss, injury or damage arising from their operation, breach, or misconduct.

Termination & Default

This Agreement may be terminated under the following conditions:

• By Franchisor: Immediately if Franchisee breaches material obligations (branding misuse, payments default, legal/regulatory violations, sub-standard operations) and fails to remedy within Cure Period Days days of notice.

• By Franchisee: If Franchisor fails to provide agreed support, brand rights are revoked, or there is a material breach by Franchisor, with written notice and opportunity to cure.

• Automatic Termination: Bankruptcy, insolvency, closure of business for extended period, or insolvency-related event.

• Effect of Termination: Franchisee must cease operations under brand, stop using IP, return all brand materials, signage, and settle all outstanding fees, royalties, or obligations.

Confidentiality & Non-Disclosure

• Both Parties agree to keep sensitive information, trade secrets, operational manuals, pricing, internal processes, confidential during and after the term of this Agreement.

• Confidentiality obligations remain for Confidentiality Period Years years after termination or expiry.

Non-Competition & Non-Solicitation (Optional Clauses)

If included:

• Franchisee agrees not to operate or participate in any competing business within Non Compete Radius (km / region) for Non Compete Duration Years after termination.

• Franchisee agrees not to solicit staff, suppliers, or customers of Franchisor outside of the franchise during and after term for Non Solicitation Duration Years years.

(Include only if relevant — otherwise remove.)

Governing Law & Dispute Resolution

• This Agreement is governed by the laws of Governing State (e.g. NSW, VIC, QLD).

• In the event of a dispute, Parties agree to attempt good-faith negotiation.

• If unresolved, Parties may proceed to mediation, arbitration, or take legal action in a court of competent jurisdiction.

Entire Agreement & Amendments

• This Agreement constitutes the full and entire agreement between the Parties regarding the franchise arrangement.

• Any amendment, variation or addition must be in writing and signed by both Parties.

• No oral agreements shall be considered binding.

Signatures