# Franchise Agreement Template, Word and PDF Source: https://nerix.ai/templates/franchise-agreement Buy to download This page shows a preview. Buy the document on nerix.ai to download it as Word and PDF and print it. https://nerix.ai/templates/franchise-agreement # Franchise agreement License a business format: territory, fees, training, brand standards, term and what happens at the end. Before you send it Franchising is regulated in many countries, with required disclosure documents, registration, cooling-off periods and limits on fees and exclusivity. Check the rules where the franchise will run, and have a lawyer review before you sign. This is not legal advice. ## Fill it in and preview You are signed in. Fill it in your workspace and it is kept as a document you can send, share and have signed. [Open in your workspace](https://app.nerix.ai/documents/templates/franchise-agreement) **€9.99, pay once, Word and PDF** Included in every paid nerix plan. ### Franchise agreement This agreement is made on 15 June 2028 between: - **Daily Press Coffee Pty Ltd**, of 40 Quay Street, Brisbane QLD 4000, Australia (the "Franchisor"); and - **Harbour Beans Pty Ltd**, of 7 Market Row, Fremantle WA 6160, Australia (the "Franchisee"). ## 1. Background and definitions 1.1 The Franchisor has developed a system for running a business, with its own name, methods, recipes, designs, standards and know-how, and owns or has the right to license the marks used with it. The Franchisee wishes to run one outlet under that system and the Franchisor is willing to allow it, on the terms below. 1.2 In this agreement: - "Business" means the following: A coffee shop selling coffee, tea and baked goods under the Daily Press brand, using the franchisor's recipes, menu, design and operating manual. - "Outlet" means the Business run at the Location; - "Location" means 12 High Street, Fremantle , or any other place that the Franchisor approves in writing; - "System" means the Franchisor's way of running the Business, including its methods, recipes, products, menus, designs, layouts, procedures, training, standards, marketing, software and know-how, as the Franchisor may improve it; - "Manual" means the Franchisor's operating manual and instructions for the System, in whatever form, as updated by the Franchisor; - "Marks" means the names, logos, brands, trade dress and other marks that the Franchisor uses for the Business, whether registered or not; - "Intellectual Property" means copyright, trade marks, designs, patents, know-how and similar rights anywhere in the world; - "Opening Date" means 1 October 2028 , or the date on which the Outlet in fact opens to the public if it is later; - "Net Sales" means all money and the value of all goods and services received or due from sales at or from the Outlet, in any way, less value added tax or sales tax, refunds that were actually made and discounts that the Manual allows; and - "Term" has the meaning in section 14. ## 2. Grant and territory 2.1 The Franchisor grants the Franchisee, for the Term, the right, and the Franchisee accepts the duty, to run the Outlet at the Location under the System and to use the Marks and the Manual for that only, on the terms of this agreement. 2.2 The grant is limited to the Outlet at the Location. The Franchisee may not run the Business from any other place, or move the Outlet, without the Franchisor's written consent. 2.3 The Franchisee's territory, and the rights that go with it, are the following: The franchisor will not open or license another Daily Press outlet within 2 km of the location during the term. 2.4 Except as section 2.3 states, the Franchisor keeps all other rights to the System and the Marks. This includes the right to run, and to license others to run, businesses of any kind, using the System or the Marks, anywhere, including by online sales and delivery, subject to section 2.3. 2.5 The Franchisee is an independent business. It is not an agent, partner or employee of the Franchisor, and cannot bind the Franchisor or make any promise in its name. The Franchisee will make this clear to the public, to customers and to staff, in the way the Manual says, including by a notice at the Outlet. The Franchisee is solely responsible for its own staff, taxes, debts and contracts. ## 3. The System and the Manual 3.1 The Franchisor will give the Franchisee a copy of the Manual before the Opening Date, and will tell it about changes to the System. The Manual stays the Franchisor's property and is confidential. The Franchisee will return it, and all copies, when this agreement ends. 3.2 The Franchisee will run the Outlet in line with the System and the Manual, as they change from time to time. The Franchisor may change the System and the Manual for good business reasons, including to meet the law, to keep up with the market or to protect the brand, but a change will not oblige the Franchisee to make a major new investment unless it is needed to meet the law or the sides agree, or the change is introduced fairly over a reasonable time. 3.3 The Franchisee will run the Outlet with its best efforts, diligently, honestly and in a way that protects and improves the standing of the Marks and the System. It will employ enough trained staff, keep to the opening hours the Manual states, and be responsible for the Outlet's day-to-day management. A named manager, approved by the Franchisor, will be in charge of the Outlet's day-to-day work. ## 4. Fees 4.1 The Franchisee will pay the Franchisor an initial franchise fee of AUD 40,000, due on signing . The fee is not refundable once paid, unless the Franchisor is in breach of this agreement, or the law gives a right to a refund, such as a cooling-off period. 4.2 The Franchisee will pay the Franchisor an ongoing fee for the Term, on the following terms: 6 percent of monthly net sales, paid by the 10th of the next month 4.3 The Franchisee will also pay a contribution to the Franchisor's marketing fund of 2 percent of monthly net sales . 4.4 Fees are due without set-off or deduction, except as the law requires, and are payable by direct debit or another way that the Franchisor reasonably requires. They do not include value added tax or sales tax, which the Franchisee will pay in addition where it applies. 4.5 Late amounts earn interest at the rate the law allows, or at the rate that the sides agree in writing, from the due date until the day of payment. The Franchisor may apply any payment it receives first to interest, then to the oldest debt. 4.6 The Franchisor may, by 90 days' written notice, change the way fees are calculated or paid if the change is for a good business reason and applies to its franchisees generally, but not so as to raise the percentage rates stated in this agreement. 5. Marketing 6. Training and launch support 7. Premises, fit-out and opening ⁦2 / 9⁩ 8. Supply of goods 9. Standards, inspections and compliance 10. Brand use and intellectual property ⁦3 / 9⁩ 11. Confidentiality and know-how 12. Insurance 13. Reports, records and audit 5 more pages ⁦4 / 9⁩ The full document unlocks when you download The rest is written and waiting, with your answers in place. Templates are a careful starting point, not legal advice. Where the law matters, check what applies where you are. Company and legal ## What this template is for A franchise agreement that lets a franchisee run a business under your brand and system. Covers territory, fees, training, standards, term and ending. It is free to fill in online and needs no account. The finished Word document and PDF cost €9.99, paid once. [See all Company and legal templates](https://nerix.ai/templates/company-legal) Company and legal ## What you fill in The form asks for 27 details. The document fills itself in as you type. - ### Franchisor For example: Daily Press Coffee Pty Ltd - ### Franchisor's address For example: 40 Quay Street, Brisbane QLD 4000, Australia - ### Franchisee For example: Harbour Beans Pty Ltd - ### Franchisee's address For example: 7 Market Row, Fremantle WA 6160, Australia - ### The franchised business For example: A coffee shop selling coffee, tea and baked goods under the Daily Press brand, using the franchisor's recipes, menu, design and operating manual. - ### Location of the outlet For example: 12 High Street, Fremantle - ### Territory Be exact. Say if the territory is exclusive and what is excluded, such as online sales. For example: The franchisor will not open or license another Daily Press outlet within 2 km of the location during the term. - ### Premises - ### Fit-out and equipment (optional) optional For example: The Franchisee will fit out the shop to the Franchisor's approved plans and buy the espresso machines, grinders and furniture on the Franchisor's equipment list, at an expected cost of AUD 180,000. - ### Initial franchise fee For example: AUD 40,000, due on signing - ### Ongoing fee For example: 6 percent of monthly net sales, paid by the 10th of the next month - ### Marketing fund contribution (optional) optional For example: 2 percent of monthly net sales - ### Training and support For example: Two weeks of training before opening, help with the opening week, an operating manual, and a support line during business hours. - ### Goods the franchisee must buy from approved sources (optional) optional For example: Coffee beans and syrups from the Franchisor or its named roaster, and cups and packaging bearing the Daily Press marks from the approved printer - ### Opening date For example: 1 October 2028 - ### Reports and accounts the franchisee gives (optional) optional For example: Daily sales through the franchisor's till system, and quarterly management accounts within 30 days of each quarter's end - ### Insurance the franchisee must hold (optional) optional For example: Public liability insurance of at least AUD 20,000,000 for each claim, and insurance of the premises and the stock against fire and theft - ### Fee for a transfer (optional) optional For example: AUD 10,000, plus the franchisor's reasonable costs of training the new franchisee - ### Length of the agreement For example: 10 years from the opening date - ### Renewal (optional) optional For example: One renewal of 5 years if the franchisee has kept the standards and gives 6 months' notice - ### After the agreement ends Limits on competing after the end must be reasonable and are not allowed everywhere. For example: The franchisee stops using the brand, returns the manual, removes signs and does not run a competing coffee shop within 1 km for 12 months. - ### Law that applies For example: Queensland, Australia - ### Place for disputes For example: Brisbane - ### How disputes are decided - ### Date of agreement For example: 15 June 2028 - ### Signed for the franchisor by (name and title) For example: Olivia Grant, Chief Executive - ### Signed for the franchisee by (name and title) For example: Tom Nguyen, Director Company and legal ## What is inside The parts of this document, in order. - 1 1. Background and definitions - 2 2. Grant and territory - 3 3. The System and the Manual - 4 4. Fees - 5 5. Marketing - 6 6. Training and launch support - 7 7. Premises, fit-out and opening - 8 8. Supply of goods - 9 9. Standards, inspections and compliance - 10 10. Brand use and intellectual property - 11 11. Confidentiality and know-how - 12 12. Insurance Templates ## How it works - 01 ### Fill in Type your details in the form. The document fills itself in as you type; click any gap to jump to its field. - 02 ### Check Read it through. Gaps you have not filled stay marked, so nothing goes out half done. - 03 ### Download Pay once and get it as a Word document to edit further and as a PDF to send or print. The link comes by email too. ### Was this template helpful? Company and legal ## Questions people ask ### What details does this template ask for? The form asks for 27 details, starting with Franchisor, Franchisor's address, Franchisee, Franchisee's address, The franchised business. 7 more are optional. ### How much does this template cost? €9.99, paid once. Filling it in and seeing the first part is free. You pay when you download the finished Word document and PDF, with no account and no subscription. Every paid nerix plan includes it. ### Can I download this template as Word or PDF? Yes. When you have filled in the form, press Download and pay once. You get the finished document as a Word file to keep editing and as a PDF to send or print, and the link by email. ### Is what I type sent anywhere? While you fill it in, what you type stays in your browser. When you buy the document, your answers go to nerix to make your files. They are kept for seven days so you can download again, then deleted. ### What should I check before I use this template? Franchising is regulated in many countries, with required disclosure documents, registration, cooling-off periods and limits on fees and exclusivity. Check the rules where the franchise will run, and have a lawyer review before you sign. This is not legal advice. ### Are these company templates free? Most are. Fill in and download them for free as Word or PDF, with no account. A few longer documents are premium: free to fill in, paid once to download, and marked with their price. ### Is a template the same as legal advice? No. A template is a careful starting point. Company, contract and data protection law differ by country, so have a lawyer read anything that carries real risk before you sign. ### Can I change the clauses? Yes. Download the Word version and edit it, or open the template in the nerix chat and ask for a clause that is stricter, shorter or in another language. Templates ## More in Company and legal - [Acceptable use policy Set clear rules for using your systems, accounts, devices and services, and what happens when they are broken. Company and legal](https://nerix.ai/templates/acceptable-use-policy) - [Agency agreement Appoint an agent to find customers and negotiate sales for you in an area, for a commission. Company and legal Premium, €9.99](https://nerix.ai/templates/agency-agreement) - [Anti-bribery policy State that you never give or take bribes, set gift and hospitality limits, and say how to report concerns. 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