Franchise Forms
Sign up franchisees and regional managers with these fully editable and downloadable franchise agreements and forms written by franchising specialists.
Q. What are the benefits of franchising?
A. If you've got a business model that is successful, franchising is a fast way to grow the business. Through your franchisee locations, you will be able to gain access to broader territories and a much larger customer base. Since your franchisees are paying to buy the franchise location, your business can expand at a much lower cost and risk to you, and through the growth of your network you can take advantage of increased buying power for goods, suppliers and advertising. In addition, franchisees are directly responsible for operating and managing the location, taking that off your shoulders and allowing you time for innovation, marketing and network development.
Q. Are there disadvantages to franchising?
A. As with all business ventures, franchising has its pitfalls as well. For one thing, you lose a measure of control over how stores are managed. Your franchisees are not your employees. They are independent business owners whose main goal is to make their business profitable. Since they have to pay you a percentage of each sale under the terms of the franchise agreement, that may eat into profits and can cause conflict between you and your franchisees. And the initial costs to franchise the business may be higher than you expected.
Q. How do I know if franchising will work for my business?
A. You really need to understand the reasons why your business has succeeded. Write everything down and then review your notes with a franchise consultant to determine whether or not franchising will work for your business model. It's important to determine the costs of franchising the system and to put together a viable growth plan, and a franchise consultant can help you do that.
Guaranty of Franchise Obligations | USA
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.
Information Statement for Prospective Franchisees | Australia
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.
Master Franchise Agreement | Canada
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.
Ontario Security Agreement for Franchise
If you franchise your business model in Ontario, you can secure your franchisees' obligations with this Personal Property Security Agreement.
- The Security Agreement grants the franchisor a security interest in all of the present and after-acquired personal property of the franchisee (debtor) including inventory, equipment, fixtures, goods, and all proceeds therefrom.
- The security interest will secure any future loan financing, operating lines, or other credit facilities provided by the franchisor to the franchisee.
- Buy the form once, use it as often as you like.
Don't leave your position unsecured in the event a franchisee goes under. Buy and download the Ontario Security Agreement and have each of your franchisees sign it.
Operations Manual for Construction Franchise | Canada
Set out the guidelines for operating a construction or renovation services franchise business in Canada with this Operations Manual template.
- Key sections of the Manual include:
- role of the franchisee
- marketing
- estimates and contracts
- customer service
- materials management
- employee selection and hiring process
- sales reporting
- theft by tradespeople.
- Available in MS Word format and fully customizable.
- The template has been prepared for use in Canada but could be adapted for other jurisdictions.
Regional Franchise Agreement | USA
Appoint regional franchisors and set up regional franchises within the United States with this comprehensive Regional Franchise Agreement template.
- The regional franchisors will recruit, screen, train and assist franchisees who will open and operate new franchise locations.
- Each regional franchisor will operate on an exclusive basis within the development area specified in the Agreement.
- Regional franchisors must meet a minimum investment obligation and pay a franchise advertising fee into a regional co-op advertising fund.
- The Agreement is governed by U.S. laws.
- Available in MS Word format, fully editable to meet your needs.
- Intended to be used only within the United States.
Regional Sub-Franchise Agreement for Restaurant | USA
Appoint regional sub-franchisors for a restaurant chain in the United States with this Regional Sub-Franchise Agreement template.
- The regional sub-franchisor will develop and manage franchisees in a designated area and provide them with support services, such as business consultation and advice, assistance in acquiring a location, lease negotiations, construction coordination, marketing advice, implementation, and training.
- The sub-franchisor will pay a non-refundable sub-franchise fee.
- The sub-franchisor will have the exclusive right to act as sub-franchisor within the designated territory.
- The franchisor grants the sub-franchisor the right to use its trademarks and logos, and will provide training and materials.
- The franchisor will pay all bills and invoices owing to the sub-franchisor.
- Provided in MS Word format and fully editable to meet your needs.
Restrictive Covenant Agreement for Franchise
Set some restrictions on your franchisees with respect to the operation of the franchise with this Restrictive Covenant Agreement.
- The franchisee agrees not to compete with the franchisor within the territory for a specified period of time.
- The franchisee has a fiduciary duty to the franchisor.
- Confidentiality provisions to protect the franchisor's trade secrets and proprietary information.
- This is a generic legal form (not country specific).
- Easy to customize to fit your business model.
Revenue Sharing Agreement with Franchisor | USA
Enter into a profit sharing arrangement with a franchisor who will distribute your products to its franchisees under the terms of this Revenue Sharing Agreement.
- The franchisor will act as your distributor and will distribute the revenue sharing products to any of its franchisees who agree to participate in the program.
- The shared revenue paid to the supplier on each product is a set price per unit. A portion of the upfront price of the products will be deducted from the supplier's share of revenues before remittance.
- The franchisor will not sell off any products until the expiration of each revenue sharing period, and will not sell products to wholesalers or jobbers, other than distressed products.
- Instead of receiving specific marketing support, the franchisor will accrue marketing support funds calculated as a percentage of the qualified sale price on revenue sharing products.
- The supplier has the right to audit the franchisor's records and those of its participating franchisees each year.
- The parties mutually indemnify and hold each other harmless.
- Available in MS Word format and fully customizable.
- Intended to be used only in the United States.
Sublicense to Use Business Marks in Fast Food Franchise
Grant a franchisee the right to use a franchisor's logos and trade marks in running its fast food franchise under this Sub-license Agreement.
- The sublicensor has the right to cancel the Agreement and shut down the franchise outlet on written notice to the new franchisee (as sublicensee), if gross sales targets are not met.
- The franchisee must purchase product and supplies from suppliers approved by the franchisor.
- The franchisee must maintain the premises up to the standards required by the franchisor.
- The franchisor has the right to enter and inspect the premises and operations.
- The franchisee must make monthly sales reports and provide financial and accounting information regularly.
- This legal contract template is available in MS Word format and is fully customizable.