Companies tend to franchise their corporate businesses to attain profitability and expansion of their services. Corporations or even small and medium-sized enterprises offer franchise opportunities for entrepreneurs and investors who would rather franchise than start their own business. These companies that offer franchise opportunities earn a sample franchise fee from every entity that signs up.
Are you planning to start your own restaurant franchise business? If yes, allow us to help you out by recommending our professionally-written “Restaurant Franchise Agreement” template. This one has key elements present such as terms of the agreement, its renewal, trademark, and other such information that will contribute to the progress of your franchise business. Using any file format, add your business details or modify any of its content. Get the job done by downloading this agreement template in Apple Pages onto any of your devices.
If you are ready to allow one of your restaurant franchisees to become a sub-franchise, then download and use our “Restaurant Sub Franchise Agreement” template that is legally compliant! It covers all of the essential details such as the recitals, payments, and obligations. Solidify franchising relationships by clicking on that download button now! You may also see Shareholder agreement templates.
Franchising the business means the expansion of your business. It is undoubtedly a good thing as it will help you gain new clients and have a large market. In case you are entering into a franchise agreement with someone, make use of our “Franchise Agreement” template rather than wasting time in drafting one. This template has got everything you need, so feel free to make little to no adjustments as per your wish.
Listed below are some tips on how to write an effective franchise agreement.
The executive summary is the one most important section of any business document, including the franchise agreement. It shows the legitimacy of one or both parties, especially the franchisor. Most of the time, an executive summary includes the most basic information of the company: company name and slogan, products and services, company address and online portfolio, mission and vision statement, company goals and objectives, financial analysis, and marketing strategies.
The executive summary, as the name suggests, is the summary of what the company currently is and what the company wants to become. It is usually found on the very first page of any business document, mostly in business plans and feasibility studies. The executive summary is placed on the first page to prepare the reader for the document’s subsequent contents while also giving him information regarding the company.
Franchise agreements do not need to become very wordy and lengthy. Since it is an agreement document, the terms and guidelines aside from the executive summary are the only items that need to be incorporated in the franchise agreement. Compared to business plans, feasibility studies, or legal documents, franchise agreements are short.
The former requires very extensive study and research, taking up time as well as financial and human resources. Business plans and feasibility studies do not only cover one or two aspects, but the entire business cycle—production, marketing, human resource, finance, and information technology. Legal documents, meanwhile, also take time due to the contents and writing being involved as lawyers and legal assistants are the only persons who can complete those documents.
The terms of the franchise are the most important aspects of any franchise agreement. The terms include the raw materials and other products which will be included in the franchise, the payment terms, and the training of personnel. When companies give out franchise opportunities to third-party investors and entrepreneurs, every aspect of the business (name, products, trademarks, etc.) are included in the franchise package.
The franchise package is non-negotiable, meaning if the franchisor does not allow the third party to access or use some parts of the business unit, then the third party should not pursue the franchise. Similarly, the payment terms that need to be written down in the franchise agreement are the franchise and annual fees. Most of the time, the franchise fee is non-negotiable, especially for large businesses (in this case, highly popular restaurants that are earning millions in annual revenues).
But, for smaller restaurants and even for start-up ones, the franchise fee is negotiable and can be paid out in several years. Indicate the payment terms so that the franchisee will have an idea of the computation of the franchise fee, and when and how to pay it.
It is the franchisee who will gain the most from the business partnership since he will be operating the business daily. If the business manages to earn well, then he can gain as much profit or even more as the company selling the franchise.
The franchisor will still earn money due to the annual and franchise fee he will be getting. It is better to list down how each party (the franchisee and franchisor) can benefit from the franchise, specifically how each party can earn and expand its long-term success.
You might want to try out this Master Franchise Agreement template that will allow the owner of a brand name to `transfer the brand’s franchising activities to a particular entity. This will be of great use to you as it gives the Master Franchisee the right to own and operate in more than one unit during a specific time at a specific area. Close more deals by editing this ready-made agreement sample template to match your specifics. Download now!
Instantly download this Sub-Franchise agreement template that will help you draft and regulate the terms and conditions for a master franchisee and a sub-franchise to franchise the business globally. This professionally designed template is ready-made and easy to use in all of the file formats presented. It also makes use of high-quality content so that even beginners can fully customize to meet the specific needs. You can also go through our service agreement templates.
Create an impressive legal agreement document for the partnership between two legally independent parties, namely the Franchisor and Franchisee who are based in different countries, by using our ready-made International Franchise Agreement Template. This is designed to lay out the terms and conditions of the business relationship as well as other important information such as fees, trade secrets, operations, etc of the agreement. You may also choose to customize this template in any of the file formats of your choice.
Before considering franchising your restaurant business, use our Restaurant Franchise Agreement Checklist so that you can get a guide in the making of your very own franchise agreement. Using this, you will be able to define the several terms of the agreement such as duration, coverage, pricing, minimum package, initial fees, and so on. You can also clearly indicate any conditions upon renewal as well as for termination or expiry of the franchise. Edit or modify other provisions as per your needs. Grab a hold this exclusive template now!
To make the franchise valid, simple agreements are created so that the parameters and guidelines of the franchisee and franchisor are set and clearly written. This is true not only for franchise agreements but with other business documents as well. Check out our other business agreement forms which can come in very handy for your own business.
Here are some franchise and multipurpose agreement templates you can use if you are planning to start your own franchise business or simply want to make a franchise agreement document for your business restaurant.
