Use this franchise agreement template to help draft your franchise contracts.
Our templates are for general information only. You should not rely on them, and Juro is not liable for any reliance on them. The templates might contain errors, including unlawful provisions and might create risks and liabilities if used. The templates are not legal advice, nor a substitute for it. By accessing any template, you accept these terms and agree that any use is at your own risk. Some of these templates were created using generative AI with human-assisted prompts.
Franchising is a strategic way to grow a brand and its presence.
Central to this growth is the franchise agreement, a document that not only formalizes the relationship between franchisor and franchisee but also serves as a blueprint for the operational and financial aspects of the franchise.
A franchise is a type of business relationship where a business owner (the franchisor) grants to an individual or company (the franchisee) the rights to operate a business using the franchisor's brand, trademark, and business model.
In return for these rights, the franchisee usually pays the franchisor an initial start-up fee and ongoing licensing fees or royalties.
A franchise agreement is a legally binding contract that establishes a franchisor's relationship with a franchisee. It outlines the rights granted to the franchisee, including the use of trademarks, business models, and systems, in exchange for financial compensation to the franchisor.
This agreement is the foundation upon which the expectations and responsibilities of both parties are built.
The agreement's primary purpose is to safeguard the franchisor's intellectual property and ensure the franchisee operates within the established brand parameters.
It delineates the scope of support from the franchisor, the operational standards to be maintained, and the financial commitments required from the franchisee. Ultimately, it's designed to protect the brand's integrity while fostering a profitable and sustainable partnership.
Consider utilizing a franchise agreement template in the following scenarios:
Typically, the franchisor's legal team is responsible for managing Franchise Agreements. However, franchisees must also understand and negotiate terms, often with the assistance of their legal advisors.
A comprehensive franchise agreement template should cover:
The franchisor's legal team drafts the agreement using a template as a starting point, customizing it for the specific franchisee.
The draft undergoes review by various stakeholders, including management and legal advisors, to ensure it aligns with the brand's standards and legal requirements.
The franchisee, often with legal counsel, reviews and negotiates terms, leading to a final agreement acceptable to both parties.
Once agreed upon, the contract is signed, often with electronic signatures, making it a legally binding document.
The franchisor oversees the agreement's execution, ensuring the franchisee complies with the terms throughout the contract's duration.
At the end of the term, the contract is either renewed or terminated, with obligations fulfilled and any final settlements addressed.
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Contract management software like Juro can significantly streamline the creation and management of franchise agreements. Automation features include:
Franchise agreements formalize the relationship between a franchisor and a franchisee. By clearly defining the terms and expectations, it ensures the integrity of the brand and the success of the individual franchise.
Utilizing a template and embracing automation can save time, reduce errors, and maintain consistency across all of your contracts.
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