Franchise Disclosure Document | Canada

Write a Franchise Agreement for a franchise business in Canada using this comprehensive template.

• This is a standard form of franchise agreement which is completely customizable and can be used across Canada in all provinces except for Quebec.
• The document contains clauses covering the initial term and renewal terms, initial franchise fee, and continuing fees to be paid by the franchisee.
• The franchisor is responsible for providing the franchisee with training, ongoing support and access to its purchasing programs.
• The franchisee is responsible for being open for business and operating the franchise in accordance with the franchisor's operations manual and system standards.
• The franchisee must comply with confidentiality and non-competition provisions both during and after the term of the agreement.
• The franchisee is obligated to participate in the franchisor's advertising and marketing programs.
• The template contains provisions for arbitration procedures.
• Available in MS Word format.
• Intended to be used only within 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.

Canadian franchisors, create a Restrictive Covenant and Confidentiality Undertaking for your franchisees with this template.

• Under this Undertaking, new franchisees signing up to your program agree to be bound by the restrictive covenant and confidentiality provisions of the Area Development Agreement in effect in their territory.
• This downloadable form is available in MS Word format and is easy to customize to fit your circumstances.
• 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.

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.