Master Franchise Contract Template for Australia

The Master Franchise Contract is a sophisticated legal instrument used when a franchise system owner wishes to expand their business through an intermediary (master franchisee) who will develop and manage a network of sub-franchisees within Australia. This document is essential for businesses implementing a multi-tiered franchise model and must strictly comply with Australian franchise regulations, particularly the Franchising Code of Conduct. The agreement covers crucial aspects such as territory rights, development schedules, fee structures, operational standards, and the master franchisee's authority to grant sub-franchises. It is particularly important for international franchisors entering the Australian market or domestic franchisors implementing regional development strategies. The document includes comprehensive provisions for protecting intellectual property, maintaining quality standards, and ensuring consistent brand representation across all levels of the franchise network.

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 acknowledgment of the master franchisee's role

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including territory, intellectual property, and system-specific terminology

4. Grant of Rights: Specific rights granted to the master franchisee, including territorial rights and sub-franchising authority

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

6. Fees and Payments: All financial obligations including initial fees, ongoing royalties, and revenue sharing from sub-franchises

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

8. Obligations of the Master Franchisee: Comprehensive duties including development schedule, sub-franchisee recruitment, and system standards maintenance

9. Sub-Franchising Provisions: Requirements and procedures for granting sub-franchises, including approval processes

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

11. Quality Control: Standards maintenance, inspection rights, and compliance requirements

12. Confidentiality: Protection of confidential information and trade secrets

13. Marketing and Advertising: Marketing obligations, advertising fund contributions, and approval processes

14. Reporting and Audits: Financial reporting requirements, audit rights, and record-keeping obligations

15. Insurance: Required insurance coverage and indemnification provisions

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

17. Post-Termination Obligations: Obligations and restrictions following agreement termination

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

19. General Provisions: Standard legal provisions including governing law, notices, and amendments