Franchise Contracts and Forms

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.

Hire a franchise support representative to supply services to your franchisees within a certain territory with this customizable contract template for Canadian franchises.

• The support representative is retained as an independent contractor to fulfill the franchisor's obligations to the existing franchisees and promote the sale of new franchises.
• The support representative agrees not to provide similar services to any competitor of the franchisor.
• The support representative's compensation will be 50% of all franchise fees received from franchises in the territory during the term of the contract, plus expenses.
• The support representative's confidentiality obligations will survive the termination of the agreement.
• Available in MS Word format, fully editable.
• Intended to be used only in Canada.

Gather the information you need to evaluate a potential franchisee with this Franchisee Confidential Evaluation Application form for Australian franchises.

Scope of Information Gathered

The application form requires the applicant to divulge certain information which allows the franchisor to conduct:

• an evaluation of the skills and expertise of the potential franchisee, based on employment background and management history;
• a verification of the applicant's financial resources by performing credit checks and other searches, based on financial information provided;
• an assessment of the overall capabilities of the applicant.

Format and Jurisdiction

The Franchisee Confidential Evaluation Application Form is available in MS Word format and is fully editable and reusable. The form is intended for use in Australia.

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.

Franchisors, use this 4-page Franchisee Profile Questionnaire to gather information from applicants to help you recruit suitable franchisees for your system.

• Applicants must provide information and answer questions to help the franchisor get an understanding of the applicant's:
  • previous business experience,
  • business acumen,
  • management potential,
  • creativity,
  • decision-making abilities.
• The form is available in MS Word format and is easy to customize to fit your circumstances.
• This is a generic document template which can be used anywhere.

Potential franchisees have questions about franchising. Give them a copy of these Frequently Asked Questions along with their franchisee application package.

• The FAQ topics include:
  • what type of experience and qualifications you need in order to be accepted as a franchisee;
  • management of the franchise;
  • the level of training and assistance provided by the franchisor;
  • marketing and advertising requirements;
  • costs, franchise fees and ongoing royalties;
  • standard terms of franchise agreements;
  • transfer or sale of a franchise;
  • operating procedures and standards;
  • inspections and on-site audits by the franchisor;
  • site selection and construction of the premises;
  • purchasing of products and supplies;
  • sales quota requirements.
• Avaialble as a downloadable MS Word file, which can be easily customized for your franchise business.

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.

Make sure your franchisees meet their obligations to you by obtaining a Guaranty of Franchise Obligations from the franchisee, with this template form for USA based franchises.

• The guarantor unconditionally guarantees the complete performance of the franchisee under the terms of the Franchise Agreement.
• The obligations of the guarantor are independent of the obligations of the franchisee.
• The Guaranty is enforceable against the guarantor and his/her personal representatives, successors and assigns, and the death of the guarantor will not terminate the liability of the guarantor.
• If the spouse of a franchisee signs as a guarantor, and the franchisee subsequently remarries, the new spouse must also sign.
• This legal template is available as a downloadable and fully editable MS Word document.
• Intended to be used only by franchises based in the United States.

Franchisors in Australia must provide potential franchisees with a copy of this Information Statement as of 1 July 2021.

• The Franchising Code of Conduct requires that prospective franchisees be provided with the Information Statement before any other disclosure related documents listed in clause 9 of the Code.
• The Information Statement explains how franchising works, what a franchisor's obligations are, and what interested parties should do to protect their own interests before they sign any documents.
• Click the Download link to download a PDF of the Information Statement directly from the ACCC website.

Canadian franchisors can appoint a master franchisee who will sell franchises for them under the terms of this Master Franchise Agreement.

• The master franchisee will operate on a non-exclusive basis within a specified territory.
• The master franchisee has the right to use the franchisor's logos and marks, to establish and operate franchise centres within the territory and to license other franchisees to operate those franchise centres.
• A franchise fee will be paid for each franchise sold, plus a continuing royalty.
• The franchisor will provide an initial training program.
• The master franchisee is responsible for ensuring each franchisee operates in accordance with the system developed by the franchisor.
• The agreement contains provisions concerning design and construction of franchise centres.
• Available in MS Word format, fully editable to fit your circumstances.
• Intended to be used only in Canada.