Alberta Franchise Sublease Agreement

Create a Franchise Agreement for new fast food restaurant franchisees with this comprehensive downloadable template for Canadian franchisors.

• The franchisee agrees to operate the business using the system developed by the franchisor for preparing and selling the food, operating the equipment, marketing, staffing, and generally managing the franchise business.
• Provisions for payment of the initial franchisee fee and a continuing royalty.
• The franchisor sets a minimum yearly advertising budget to which the franchisee must contribute.
• Training and assistance will be provided by the franchisor.
• The franchisee must purchase and sell products approved by the franchisor.
• The franchisee can only make modifications to the franchise system with the consent of the franchisor.
• The franchisee has the right to use the franchisor's trade marks in connection with operating the business.
• Confidentiality provisions.
• Provisions for termination by either party.
• Fully editable and easy to customize to fit your business model.

Canadian franchise laws require franchisors to provide potential franchisees with this Franchise Disclosure Document.

• The Disclosure Document discloses all relevant information about the franchisor and the franchise business as required by franchise laws and regulations for the Provinces of Ontario, Alberta, British Columbia, Manitoba, New Brunswick, and Prince Edward Island, including:
  • the franchisor's corporate structure and history,
  • the business experience of the principals of the franchisor,
  • any current or potential litigation involving the franchisor,
  • initial franchise fees and other fees to be paid by a franchisee,
  • financing, working capital, and estimates of annual operating costs,
  • restrictions on sources of products and services, and restrictions on what the franchisee may sell,
  • assistance and training programs offered by the franchisor,
  • government licenses, registrations and authorizations,
  • provisions for renewal, transfer and termination of the franchise,
  • financial statements and information,
  • forms and addenda to meet province-specific requirements.
• The form is available in MS Word format.
• Intended for use only in Canada.

Screen your potential franchisees by having them complete this Confidential Evaluation and Application Form, for Canadian franchises.

• Evaluate the skills and expertise of the applicant franchisee, based on employment background and management history.
• Verify the applicant's financial resources by performing credit checks and other searches, based on the financial information provided.
• Assess the overall business capabilities of the applicant.
• Available in MS Word format.
• Intended to be used only in Canada.

Bad things can happen when a franchisee is unable to meet its obligations. Be sure to have all your franchisees sign this Guarantee and Indemnification.

A franchisee may, for any number of reasons, find itself unable to fulfill its obligations under the Franchise Agreement. To protect your business against franchisee default, it is essential to have your franchisees sign a Guarantee and Indemnification Agreement.

Legal Basis and Structure

This document is a Canadian legal form created specifically for franchise relationships. Under the terms of the agreement, a principal of the franchisee company personally guarantees the fulfillment of all obligations and the payment of any amounts owed to the franchisor under the Franchise Agreement.

Indemnification Provisions

The franchisee company agrees to indemnify the franchisor against any losses or claims that arise as a result of the franchisee's default or inability to perform.

Acknowledgment and Covenants

By signing the Guarantee and Indemnification, the principal of the franchisee acknowledges and agrees to be bound personally by the covenants outlined in the Franchise Agreement.

Benefits of Having the Guarantee in Place

Requiring all franchisees to execute this Guarantee and Indemnification provides legal recourse if a franchisee fails to meet its obligations or is unable to continue operating its business.

Access and Governing Law

The Guarantee and Indemnification form is available for immediate download following purchase. The agreement is governed by the laws of Canada.