Master Franchise Agreement Template for Australia

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Key Requirements PROMPT example:

Master Franchise Agreement

"I need a Master Franchise Agreement for my Australian coffee shop chain expanding into New Zealand, with rights to appoint sub-franchisees and requirements for establishing a local training center by March 2025."

Document background
The Master Franchise Agreement is utilized when a franchise system owner wishes to expand their business through a master franchisee who will develop and manage sub-franchises within a defined territory in Australia. This document is essential for businesses implementing a multi-tiered franchise model and must comply with Australian legislation, particularly the Franchising Code of Conduct and the Competition and Consumer Act. The agreement comprehensively addresses the rights and obligations of both parties, including territory development schedules, fee structures, support systems, quality control measures, and sub-franchising procedures. It's particularly relevant for international franchisors entering the Australian market or domestic franchisors implementing regional development strategies.
Suggested Sections

1. Parties: Identification of the franchisor and master franchisee, including full legal entities and ABNs

2. Background: Context of the agreement, brief description of the business system, and intention to grant master franchise rights

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

4. Grant of Master Franchise Rights: Scope of territorial rights and exclusivity granted to the master franchisee

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

6. Fees and Payments: Initial fees, ongoing royalties, and payment terms for both master franchise and sub-franchise arrangements

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

8. Obligations of the Master Franchisee: Operational requirements, development schedule, and sub-franchising obligations

9. Sub-Franchising Rights and Obligations: Terms and conditions for granting sub-franchises, including approval processes

10. Intellectual Property: Usage rights and restrictions for trademarks, copyright, and other IP

11. Quality Control and Standards: Maintenance of system standards and quality control requirements

12. Marketing and Advertising: Marketing obligations, fund contributions, and approval processes

13. Confidentiality: Protection of confidential information and trade secrets

14. Non-Competition and Restraints: Restrictions during and after the term of the agreement

15. Default and Termination: Events of default, remedies, and termination procedures

16. Post-Termination Obligations: Obligations and procedures following termination

17. Dispute Resolution: Processes for resolving disputes as per Franchising Code requirements

18. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Import/Export Requirements: Required for international master franchise arrangements involving cross-border trade

2. Local Adaptation Rights: Needed when the system requires significant modification for local market conditions

3. Multi-Currency Provisions: Required for agreements involving operations across multiple currencies

4. Development Schedule Obligations: Used when specific growth targets or development schedules are required

5. Master Franchisee's Own Operations: Required when the master franchisee will also operate their own units

6. Training Center Requirements: Needed when the master franchisee must establish local training facilities

7. Supply Chain Provisions: Required when the master franchisee will manage local supply chains

8. Translation Rights and Obligations: Needed for markets where materials require translation

Suggested Schedules

1. Territory Definition: Detailed description and/or maps of the granted territory

2. Initial Fee and Ongoing Payments: Comprehensive fee structure including all payment obligations

3. Approved Suppliers and Products: List of approved suppliers and products for the system

4. Brand Standards Manual: Details of required operational standards and procedures

5. Intellectual Property Register: List of all registered and unregistered IP rights included in the grant

6. Training Requirements: Details of initial and ongoing training programs

7. Development Schedule: Timeline and targets for sub-franchise development

8. Form of Sub-Franchise Agreement: Approved template for sub-franchise agreements

9. Marketing Guidelines: Specifications for local marketing and advertising

10. Reporting Requirements: Forms and schedules for required operational reporting

11. Insurance Requirements: Details of required insurance coverage and limits

12. Initial Setup Requirements: Specifications for establishment of master franchise operations

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

Hospitality

Education and Training

Professional Services

Health and Fitness

Automotive

Real Estate

Home Services

Technology and Software

Personal Care and Beauty

Child Care and Education

Business Services

Manufacturing and Distribution

Relevant Teams

Legal

Operations

Finance

Compliance

Business Development

Franchise Development

Commercial

Senior Management

Risk Management

Training and Development

Relevant Roles

Chief Executive Officer

Managing Director

Franchise Development Manager

Legal Counsel

Chief Financial Officer

Operations Director

Territory Development Manager

Compliance Officer

Business Development Manager

Commercial Director

Head of Franchising

Regional Manager

General Counsel

Chief Operating Officer

Franchise Support Manager

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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