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Dealer Franchise Agreement

Dealer Franchise Agreement Template for Australia

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Key Requirements PROMPT example:

Dealer Franchise Agreement

"I need a Dealer Franchise Agreement for my luxury vehicle manufacturing company expanding into the Australian market, with exclusive territory rights for New South Wales and provisions for potential expansion into Victoria by March 2025."

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Document background
The Dealer Franchise Agreement is a fundamental document used to establish and govern the commercial relationship between vehicle manufacturers/distributors and their authorized dealers in Australia. This agreement type is specifically designed to comply with Australian legal requirements, including the mandatory Franchising Code of Conduct, the Competition and Consumer Act 2010, and relevant state-specific legislation. It outlines comprehensive terms for the establishment, operation, and potential termination of a dealer franchise, including territory rights, performance standards, facility requirements, and operational procedures. The agreement protects both parties' interests while ensuring compliance with Australian franchise laws, competition regulations, and consumer protection requirements. Given the significant investment typically involved in automotive dealerships, the agreement includes detailed provisions for financial arrangements, property requirements, and performance expectations, making it essential for establishing successful dealer-manufacturer relationships in the Australian market.
Suggested Sections

1. Parties: Identification of the franchisor and dealer/franchisee

2. Background: Context of the agreement, nature of the business, and franchise system overview

3. Definitions and Interpretation: Defined terms, rules of interpretation, and hierarchy of documents

4. Grant of Franchise: Terms of franchise grant, territory rights, and exclusivity provisions

5. Term and Renewal: Initial term, conditions and process for renewal

6. Dealer Obligations: Core responsibilities including compliance with operations manual, training requirements, and performance standards

7. Franchisor Obligations: Support services, training, and ongoing assistance provided by the franchisor

8. Fees and Payments: Franchise fees, royalties, marketing contributions, and payment terms

9. Operations and Standards: Operating procedures, quality standards, and compliance requirements

10. Products and Supply: Approved products, ordering procedures, and supply arrangements

11. Marketing and Advertising: Marketing requirements, advertising approvals, and promotional activities

12. Intellectual Property: Use of trademarks, trade secrets, and other IP rights

13. Records and Reporting: Financial records, reporting requirements, and audit rights

14. Insurance and Indemnity: Required insurance coverage and mutual indemnification provisions

15. Transfer and Assignment: Procedures for transfer of franchise rights and change of ownership

16. Termination: Grounds for termination, notice requirements, and consequences

17. Post-Termination Obligations: Duties and restrictions after agreement ends

18. Dispute Resolution: Process for handling disputes and mediation requirements

19. Confidentiality: Protection of confidential information and trade secrets

20. General Provisions: Standard legal provisions including notices, governing law, and entire agreement

Optional Sections

1. E-Commerce Operations: Required when dealer will operate online sales channels

2. Multi-Site Rights: Included when dealer has rights to operate multiple locations

3. Service Department Requirements: Specific for dealers offering repair and maintenance services

4. Floor Plan Financing: Included when franchisor provides or arranges inventory financing

5. Performance Guarantees: When personal guarantees from dealer principals are required

6. Used Vehicle Operations: Required when dealer is authorized to sell used vehicles

7. Rental Operations: Included if dealer will operate a vehicle rental business

8. Property Requirements: Detailed premises requirements if not covered in separate lease

9. International Operations: Required for dealers operating in multiple countries

Suggested Schedules

1. Schedule 1 - Territory Description: Detailed description of granted territory including maps and boundaries

2. Schedule 2 - Initial Fees and Charges: Comprehensive breakdown of all initial fees, ongoing charges, and payment terms

3. Schedule 3 - Required Equipment and Facilities: Specifications for required dealer facilities, equipment, and technology

4. Schedule 4 - Performance Criteria: Detailed performance standards and targets

5. Schedule 5 - Training Requirements: Initial and ongoing training requirements for dealer staff

6. Schedule 6 - Approved Products: List of authorized vehicles, parts, and accessories

7. Schedule 7 - Operating Standards: Detailed operational requirements and procedures

8. Schedule 8 - Marketing Guidelines: Specific requirements for local marketing and advertising

9. Appendix A - Franchise Disclosure Document: Required disclosure document under Franchising Code of Conduct

10. Appendix B - Operations Manual Table of Contents: Index of operations manual contents (full manual provided separately)

11. Appendix C - Form of Guarantee: Template for personal or corporate guarantees

12. Appendix D - Compliance Certificates: Required regulatory and compliance certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Accessories
Advertising Guidelines
Approved Location
Authorized Products
Business Day
Change in Control
Commencement Date
Competitive Products
Confidential Information
Customer
Dealer Management System
Dealer Operations Manual
Default
Disclosure Document
Emergency Repairs
Event of Default
Facility Standards
Fleet Sales
Force Majeure Event
Franchise
Franchise System
Franchising Code of Conduct
Genuine Parts
Goodwill
Gross Margin
GST
Guaranteed Obligations
Initial Stock Order
Initial Term
Intellectual Property Rights
Key Performance Indicators
Marketing Fund
Minimum Performance Standards
Net Sales
New Vehicle
Operating Standards
Parts and Accessories
Performance Criteria
Premises
Primary Market Area
Product Lines
Renewal Term
Required Insurance
Retail Sales
Sales Targets
Service Standards
Special Tools
Stock
Supply Agreement
Territory
Trade Marks
Training Program
Used Vehicle
Vehicle Management System
Warranty
Warranty Repairs
Working Capital
Clauses
Recitals
Definitions
Grant of Rights
Term and Renewal
Territory Rights
Fees and Payments
Performance Standards
Facility Requirements
Training Requirements
Operating Standards
Supply Terms
Stock Requirements
Marketing and Advertising
Intellectual Property
Confidentiality
Non-Competition
Records and Reporting
Audit Rights
Insurance
Indemnification
Assignment and Transfer
Change of Control
Termination
Post-Termination Obligations
Dispute Resolution
Force Majeure
Compliance with Laws
Data Protection
Consumer Protection
Warranties
Service Standards
Quality Control
Financial Requirements
Guarantees
Property Rights
Employee Standards
Health and Safety
Environmental Compliance
Brand Standards
Technology Requirements
Reporting Obligations
Notice Requirements
Governing Law
Jurisdiction
Entire Agreement
Severability
Waiver
Amendment
Force Majeure
Relevant Industries

Automotive

Manufacturing

Retail

Distribution

Transportation

Vehicle Sales

Automotive Parts and Accessories

Vehicle Service and Repair

Fleet Management

Vehicle Leasing

Relevant Teams

Legal

Compliance

Operations

Commercial

Sales

Network Development

Finance

Risk Management

Business Development

Brand Management

Dealer Operations

Contract Administration

Franchise Development

Relevant Roles

Chief Executive Officer

Managing Director

Franchise Development Manager

Legal Counsel

Compliance Officer

Business Development Manager

Operations Director

Dealer Principal

Commercial Director

Sales Director

Network Development Manager

Dealer Development Manager

Contract Manager

Risk Manager

Chief Financial Officer

Brand Manager

Territory Manager

Regional Manager

Franchise Operations Manager

Industries
Competition and Consumer Act 2010 (Cth): The primary federal law governing competition, fair trading, and consumer protection in Australia, including the Australian Consumer Law (Schedule 2)
Franchising Code of Conduct: Mandatory industry code under the Competition and Consumer Act 2010, specifically regulating franchise agreements and the conduct of franchising parties
Motor Vehicle Dealers and Repairers Act 2013: State-based legislation (varies by state) governing the licensing and conduct of motor vehicle dealers
Privacy Act 1988 (Cth): Federal legislation governing the collection, use, storage, and disclosure of personal information by businesses
Electronic Transactions Act 1999 (Cth): Legislation facilitating the use of electronic communications in business transactions and contracts
Australian Securities and Investments Commission Act 2001: Relevant for financial services aspects and business conduct requirements
Common Law Contract Principles: General principles of contract law including offer, acceptance, consideration, and intention to create legal relations
Fair Work Act 2009 (Cth): Relevant for employment aspects within the franchise relationship and potential transfer of employees
State Fair Trading Acts: State-specific legislation complementing the Australian Consumer Law and providing additional consumer protections
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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