Franchise Agreement

Franchise Agreement

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This Franchise Agreement is a contract made effective on (date) between (your name or your company name) hereafter called the “Franchisor” and existing in the state of (name) with its main office located at (address) and (Franchise Name) hereafter called the “Franchisee” located in the state of (name) with its headquarters at (address).
The Franchisor agrees to own the franchise (description) in (country) that either rents, sells or markets (describe the product or service) to (select one: the public, private or public corporations, the government). The Franchisor also agrees to purchase for each franchise location a specific number or products or services and will provide appropriate advertising and marketing to support the Franchisee.
1.    Term of Agreement
1.1 These Franchise Agreements will last for a term beginning on (date) and ending on (date) and shall be called the “Contract Year”.
2.    Region
2.1 The region for this Franchise Agreement will be located in (country) and the country’s territories to include (describe location of franchise(s) including full address).
3.    Revenue Distribution
3.1 The Franchisee shall pay the Franchisor (percentage) of the net income with distribution to be due on (date)
4.    Commitments of Franchisor
4.1 The Franchisor agrees to the following purchasing directives at all Franchise locations:  (describe the purchasing requirements)
4.2 For any goods stolen, lost or unaccounted for at least (number) days the Franchisee agrees to pay (amount) to the Franchisor.
4.3 Per this Franchise Agreement, if the Franchisor does not order (number) per requirement listed above the Franchisee will pay (amount) to the Franchisor, which will be an amount equal to the number the Franchisee did not order
4.4 If the Franchisor does not deliver the units ordered by the Franchisee per the requirements above, the Franchisor shall pay the Franchisee for each unit not delivered.
5. Advertising and Marketing
5.1 As per Franchise Agreements the Franchisee will confer with the Franchisor and apprise Franchisor of all marketing and advertising plans.
5.2 The Franchisee in these Franchise Agreements agrees to follow the overall marketing and advertising policies of the Franchisor.
5.3 The Franchisee agrees to allow the Franchisor final say and approval on all marketing plans in a timely manner and in writing.
5.    Reporting
5.1 The Franchisee in this Franchise Agreement will provide to the Franchisor daily electronic access to sales and inventory summaries as well as all pertinent operation data including but not limited to sales or rental data, daily inventory and each day’s revenue.
6.    Renewal Review
6.1 Prior to the end of the Contract year the Franchisee and Franchisor shall meet to review this Franchise Agreement. If the parties cannot agree to amendments to this Franchise Agreement then the current agreement will remain in effect for (number) days after the end of the Contract Year during which time either party can provide notification of termination.
6.2 Once notice of termination has been given the Franchisee can no longer purchase additional product units and the Franchisor no longer is obligated to sell the product to the Franchisee
7.    Termination of the Franchise Agreements
7.1 This contract can be terminated by either party when a breach occurs and the offending party fails to correct the breach within (number) days.
7.2    This contract will be terminated should either part file for bankruptcy
7.3    This contract will be terminated should either party fail to make payment.
7.4    Termination of this agreement does not discharge the owing party from its obligations.
This Agreement is made under the laws governed by the state of (state).
This Franchise Agreement is entered into on (date).
Franchisor                                             Franchisee
___________________                        _______________________
Authorized Signature                              Authorized Signature
__________________                         ________________________
Print Name and Title                            Print Name and Title

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