Direct Franchise Agreement Template for Australia

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Key Requirements PROMPT example:

Direct Franchise Agreement

"I need a Direct Franchise Agreement for a national coffee shop chain in Australia, with provisions for both shopping center and street-front locations, including specific requirements for product sourcing from our approved coffee bean suppliers and detailed fitout specifications."

Document background
The Direct Franchise Agreement is the primary contract used to establish a franchise relationship in Australia, governed by federal and state laws, particularly the Franchising Code of Conduct under the Competition and Consumer Act 2010. This agreement is used when a franchisor grants franchise rights directly to a franchisee (as opposed to master franchise or area development arrangements). It contains mandatory provisions required by Australian law, including disclosure obligations, cooling-off rights, and dispute resolution procedures. The agreement comprehensively covers all aspects of the franchise relationship, from initial grant and setup through to ongoing operations and eventual termination or renewal. It is essential for protecting both parties' interests while ensuring compliance with Australian franchise regulations.
Suggested Sections

1. Parties: Identification of franchisor and franchisee with full legal details

2. Background: Context of the agreement, description of the franchise system, and business concept

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules for interpretation

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

5. Term and Renewal: Initial term of the agreement and conditions for renewal

6. Fees and Payments: Initial franchise fee, ongoing royalties, marketing contributions, and payment terms

7. Franchisor Obligations: Support, training, and services to be provided by the franchisor

8. Franchisee Obligations: Operating standards, compliance requirements, and performance obligations

9. Intellectual Property: Use of trademarks, copyright, and other IP rights

10. Training and Support: Initial and ongoing training requirements and support services

11. Marketing and Advertising: Marketing obligations, advertising fund contributions, and local marketing requirements

12. Operations Manual: Compliance with operations manual and system standards

13. Records and Reporting: Financial reporting requirements and record-keeping obligations

14. Insurance: Required insurance coverage and minimum limits

15. Transfer and Assignment: Conditions for transfer of the franchise and franchisor's right of first refusal

16. Termination: Grounds for termination and procedures

17. Post-Termination Obligations: Obligations after termination including non-compete and confidentiality

18. Dispute Resolution: Procedures for resolving disputes as per Franchising Code requirements

19. Governing Law: Applicable law and jurisdiction

20. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Multi-Unit Rights: Used when granting rights to operate multiple franchise units

2. Development Schedule: Include when there's a planned schedule for opening multiple units

3. Special Territory Rights: When granting specific territorial protections or online sales rights

4. Equipment Leasing: If the franchisor provides equipment leasing arrangements

5. Premises: When the agreement includes specific premises requirements or leasing arrangements

6. Supply Arrangements: When mandatory supply relationships or exclusive supplier arrangements exist

7. Mobile Operations: For mobile franchise operations with specific territory and operational requirements

8. Sub-Franchising Rights: If sub-franchising is permitted under certain conditions

9. Special Industry Requirements: For industry-specific compliance requirements (e.g., food safety, healthcare)

Suggested Schedules

1. Schedule 1 - Franchise Details: Key commercial terms, fees, territory definition, and specific grant details

2. Schedule 2 - Initial Fee Schedule: Breakdown of initial fees, payment terms, and what they cover

3. Schedule 3 - Ongoing Fees: Details of royalties, marketing contributions, and other ongoing payments

4. Schedule 4 - Territory Description: Detailed description of territory boundaries and any exclusions

5. Schedule 5 - Initial Training Program: Details of required initial training, duration, and content

6. Schedule 6 - Equipment and Fitout Requirements: Specifications for required equipment and premises fitout

7. Schedule 7 - Key Performance Indicators: Performance standards and metrics

8. Schedule 8 - Approved Products and Services: List of authorized products and services

9. Schedule 9 - Approved Suppliers: List of approved suppliers and supply terms

10. Appendix A - Operations Manual Table of Contents: Overview of operations manual content

11. Appendix B - Brand Standards: Detailed brand guidelines and usage requirements

12. Appendix C - Required Insurance: Detailed insurance requirements and minimum coverage levels

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

Relevant legal definitions
Clauses
Relevant Industries

Retail

Food and Beverage

Automotive

Healthcare and Medical

Education and Training

Home Services

Professional Services

Fitness and Recreation

Beauty and Personal Care

Real Estate

Technology Services

Cleaning Services

Hospitality

Child Care Services

Relevant Teams

Legal

Operations

Finance

Compliance

Business Development

Commercial

Brand Management

Training

Property

Risk Management

Relevant Roles

CEO

Franchise Development Manager

Legal Counsel

Chief Legal Officer

Business Development Manager

Operations Manager

Compliance Officer

Commercial Director

Chief Financial Officer

Franchise Operations Director

Brand Manager

Territory Manager

Training Manager

Property Manager

Contract Administrator

Industries
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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