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   Franchise Contract

    

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Franchise Contract

This agreement ("Agreement"), entered into by {Name}, henceforth known as "Franchisee," and {Name}, henceforth known as "Company," is to establish the relationship between the two parties with regard to the Franchisee owning and operating a franchise of the Company.

This Agreement is entered into on the {date} day of {month}, {year}.

Both parties agree to the following conditions:

Section 1: The Agreement

1.1 Franchisee will own and operate a location of the Company at {address of location}. This location {is/is not} currently set up to be a franchise of the Company. {If not, indicate the plans for remodeling the location to fit with the Company's specifications}.

1.2 This Agreement between the Franchisee and the Company begins on the day of the signing of this contract, and continues until {end of the first term of the franchise agreement}.

1.3 The Franchisee's territory will cover {area of the Franchisee's territory}.


Section 2: Payment

2.1 Franchisee will pay the Company {amount in dollars} for the rights to own and operate this franchise. This sum is payable {details of the payment plan}.

2.2 Franchisee will pay the Company royalties of {amount in dollars} every {week, month, etc.}, payable to {specific account, or a method in which Franchisee will pay the royalty}.

2.3 Failure to pay any royalties and/or fees within {amount of time} of the due date will result in {termination, late fees, etc.}.


Section 3: Franchisee Responsibilities

3.1 Franchisee will oversee the day-to-day management and operation of the franchise location, while maintaining the outward appearance customers have come to expect from the Company.

3.2 Franchisee is responsible for maintaining the upkeep of the location. The Company will inspect the location every{week, month, year, etc.}. Failure to comply with the Company's standards in this regard, as noted in {company handbook, attached addendum, etc.} will result in {punishment for not complying with the standards}.


Section 4: Company Responsibilities

4.2 Company will also provide support in the form of {ways in which the company will support the franchisee}.


Section 5: Advertising

5.1 Franchisee will maintain its own advertising campaign locally, and pay {amount in dollars} for the {national/international} advertising of the Company every {week, month, year, etc.}.

5.2 Company will provide {signage, product, etc.} to the Franchisee on a {weekly, monthly, yearly basis}.


Section 6: Rights

6.1 The trademark and any copyrights belonging to the Company will remain the property of the company at all times. Franchisee has the right to use the trademarks and copyrights for the purposes of advertising and promotion, provided that {conditions Franchisee must meet to use these items}.

6.2 Any misuse of the Company's trademarks or copyrights will result in {punishment for misusing these items}.


Section 7: Selling or Transferring the Franchise

Franchisee may sell or transfer the franchise {ways in which Franchisee may sell or transfer the franchise, if applicable}.


Section 8: Renewal and Termination

8.1 This franchise agreement is up for renewal on {date}. Should both parties agree to renew at this time, a new contract will be drafted and signed. If either party wishes to terminate the agreement, it is free to do so at this time.

8.2 Company has the right to withdraw the Franchisee's rights for the franchise at any time if Franchisee fails to comply with ALL company standards. The Franchisee will give up all rights to the franchise, and will not receive any compensation as a result.


Section 9: Severability and Jurisdiction

9.1 Invalidity or unenforceability of one or more provisions of this Agreement shall not affect any other provision of this Agreement.

9.2 Franchisee and Company acknowledge that this Agreement is subject to the laws and regulations of the state of {State}.


Signed:

___________________________                                        __________________________
Franchisee Name                                                                   Company Representative Name


___________________________                                        __________________________
Franchisee Signature                                                             Company Representative Signature


Notary Signature and Seal:





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