A franchise agreement is the contract that lets a franchisee run a business under a franchisor’s brand and system in return for fees. It defines the territory, the length of the term, royalties, training, brand standards and what happens when the deal ends. Franchisors use it to protect their brand, and franchisees rely on it to know exactly what they are buying.
This page has 30+ franchise agreement templates for different deal types. Options include a basic and a draft agreement, a non-exclusive agreement, an overseas version for international expansion, a master franchise agreement that lets one party sub-franchise a region, and a consent agreement for transfers. Each franchise contract template is editable.
Use a template to learn the structure and prepare your terms, then have a franchise lawyer finalise the contract. Disclosure and registration rules vary widely by country and state.
Before the agreement is signed, franchisors usually ask for a franchise application form. You can also check out our board resolution templates to record the company’s approval and business startup budget templates to plan the opening costs.
Official Franchise Agreement Templates
Basic Franchise Agreement Template
Draft Franchise Agreement Template
Non Exclusive Franchise Agreement Template
Practical Franchise Agreement Template
Overseas Franchise Agreement Template
Franchise Consent Agreement Template
Specific Franchise Agreement Template
Master Franchise Agreement Template
Standard Franchise Agreement Template
Sample Franchise Agreement Template
Telecom Franchise Agreement Template
Simple Franchise Agreement Template
Franchise Disclosure Document Template
Detailed Franchise Agreement Template
Amended Franchise Agreement Template
Commercial Franchise Agreement Template
Elements of a Franchise Agreement Template
With the mutual consent of the franchiser and franchisee, any relevant clause, term or section can be included in a franchise agreement template. However a franchise agreement is formed, it should include the following important elements:
- Complete name of both the franchiser company and the franchisee.
- A detailed FDD, or Franchise Disclosure Document. This is a legal pre-sale document that a franchiser must provide to a prospective franchisee to comply with Federal Trade Commission requirements. It contains information that must be brought to the attention of interested persons before they decide to invest in the franchise.
- The disclosures required to comply with the laws of the state in which the franchise will be established.
- Terms and conditions of the franchise agreement in detail.
- The legitimate ownership of the business.
- Goals and objectives that the franchiser and the franchisee expects to achieve by franchising.
- Consent in writing, of the party offering the franchise i.e, the franchiser.
- Complete details of duties, responsibilities, obligations, rights and liabilities of both the parties to the agreement.
- The total amount for which the franchise will be acquired and how the franchiser will pay that amount.
- The area or locality where the franchise will be established and registered.
- All other relevant clauses like termination clauses and confidentiality clauses etc.
Best Franchise Agreement Templates
Travel Agency’s Franchise Agreement Template
Professional Franchise Agreement Template
Franchise Agreement Format Template
Postal Franchise Agreement Template
Collection Services Franchise Agreement Template
Special Brand’s Franchise Agreement Template
Restaurant’s Franchise Agreement Template
Supplier’s Franchise Agreement Template
Typical Franchise Agreement Template
Confidential Franchise Agreement Template
Model Franchise Agreement Template
Prospective Franchise Agreement Template
Formal Franchise Agreement Template
International Franchise Agreement Template
Elemental Franchise Agreement Template
Professional Franchise Agreement Template
Reasons for Termination of a Franchise Agreement
As mentioned earlier, a franchiser offers a franchise to expand and grow its business, while a franchisee acquires a franchise to run a business based on the established value and goodwill of the franchiser. If proper termination clauses are included in a franchise agreement template, both the franchiser and the franchisee can end the agreement.
There are many reasons why the franchiser or franchisee may terminate such an agreement. Some of them are:
Franchisee’s Reasons for Termination of a Franchise Agreement:
- When somehow, it is identified that the franchiser has made a misrepresentation or committed a fraud.
- If the franchiser is adjudicated as an insolvent or is declared bankrupt.
- The franchiser is unable to provide protection to the business opportunities of the franchisee.
- When the franchiser commits a major breach.
- If the franchiser fails to provide the proper and necessary training it agreed to when the agreement was formed.
Franchiser’s Reasons for Termination of a Franchise Agreement:
- When the franchisee is in breach of the terms and conditions of franchise agreement.
- If the franchisee does not pay the royalties intentionally or if he becomes unable to pay such royalties.
- If the franchisee gets convicted for any crime, by a court of law.
- The franchiser can end the agreement if the franchisee does not follow or comply with the franchiser’s specified operating procedures, as agreed when the agreement was formed.
- If the franchisee becomes insolvent or if he is declared as bankrupt.
- When the franchisee is failed to operate or run the business as expected.
- When the franchisee is found guilty of mis-using the license granted.
- If the franchisee does not take proper action to remedy defaults or deficiencies, even after receiving warning notices from the franchiser.
Reviewing a Franchise Agreement by Topic
Treat a franchise agreement as a significant business commitment. A template can help identify topics, but disclosure duties and franchise rules vary and need specialist review. For a retail operation, WordNExcelTemplates’ retail operations manual templates can help organize day-to-day procedures separately from the legal franchise agreement.
- Identify the business model, territory, term and rights being granted.
- Review fees, operating obligations, training, supply arrangements and brand controls.
- Examine renewal, transfer, default and exit terms with qualified advisers.
Worked Example
Example: an operator is offered a territory described as “the city centre.” The parties need to define its boundaries and explain how online sales, delivery areas or other outlets affect it. A geographic label alone may not establish the exclusivity the operator expects.
Common Mistakes to Avoid
Avoid comparing opportunities only by the initial fee. Do not assume projected earnings are guaranteed or that a sample includes all required disclosures.
Related Templates
- Franchise Application Form Templates
- Board Resolution Templates
- Agency Agreement Templates
- Founders Agreement Templates
Frequently Asked Questions
Does a franchise agreement guarantee a profit?
No. Commercial results depend on many factors, and forecasts require careful examination. Seek independent advice and verify assumptions before committing funds.
What should I check about renewal?
Review whether renewal is available, its conditions, fees and any requirement to sign updated terms. Do not treat a stated initial term as a promise of indefinite continuation.
