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.
USA Unit Franchise Agreement
USA unit franchisors, prepare a Unit Franchise Agreement for a franchise associate with this comprehensive downloadable template.
- The associate is granted a license to use the franchisor's business marks, in order to establish and operate a franchise center within a specified territory.
- The unit franchisor will provide the initial training program and find a suitable location, and will provide ongoing consultation and guidance to the franchise associate.
- Provisions governing the design and construction of the franchise centers.
- Confidentiality provisions.
- The associate must provide accurate and complete accounting and financial records for the franchise business.
- The associate must maintain a life insurance policy naming the franchisor as beneficiary, with the proceeds to pay any outstanding amounts and indebtedness of the franchise business.
- The file includes a Guarantee, Indemnification and Acknowledgement from the principals of the associate, guaranteeing payment of amounts due under the agreement and indemnifying the franchisor.
