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Sub Franchise Agreement
"I need a Sub Franchise Agreement for my Canadian coffee shop chain, where I'll be granting sub-franchise rights to a master franchisee in British Columbia who will develop 15 locations by March 2025, with strong provisions for maintaining our premium brand standards and quality control."
1. Parties: Identification of the franchisor, franchisee (as sub-franchisor), and sub-franchisee
2. Background: Context of the agreement, including reference to the master franchise agreement and the sub-franchising structure
3. Definitions: Comprehensive definitions of terms used throughout the agreement
4. Grant of Sub-Franchise: Specific rights granted to the sub-franchisee, including territorial rights and limitations
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Fees and Payments: Initial fees, ongoing royalties, and other financial obligations
7. Training and Support: Training requirements and ongoing support provisions
8. Intellectual Property: Use of trademarks, copyrights, and other intellectual property
9. Operations and Standards: Operating procedures, quality standards, and compliance requirements
10. Marketing and Advertising: Marketing obligations, advertising fees, and promotional requirements
11. Records and Reporting: Financial reporting requirements and record-keeping obligations
12. Transfer and Assignment: Conditions and restrictions on transfer of the sub-franchise
13. Termination: Grounds for termination and procedures
14. Post-Termination Obligations: Obligations and restrictions after agreement ends
15. Confidentiality: Protection of confidential information and trade secrets
16. Non-Competition: Restrictions on competitive activities
17. Dispute Resolution: Procedures for resolving disputes
18. General Provisions: Standard legal provisions including notices, governing law, etc.
1. Development Schedule: Used when the sub-franchisee has obligations to develop multiple units within a specific timeframe
2. E-Commerce Rights: Include when online sales are relevant to the business model
3. Equipment and Inventory Requirements: Detailed section needed for businesses with specific equipment or inventory needs
4. Multi-Unit Rights: Include when granting rights to operate multiple units
5. International Operations: Required for cross-border operations or international territories
6. Social Media Policy: Include for businesses with significant social media presence requirements
7. Crisis Management: Important for food service or high-risk businesses
8. Environmental Compliance: Required for businesses with significant environmental impact
1. Schedule A - Territory Description: Detailed description of the granted territory
2. Schedule B - Initial Fees and Ongoing Payments: Comprehensive breakdown of all financial obligations
3. Schedule C - Operating Manual Table of Contents: Overview of the operating manual contents
4. Schedule D - Approved Suppliers: List of approved suppliers and products
5. Schedule E - Initial Training Program: Details of required initial training
6. Schedule F - Intellectual Property: List of trademarks, copyrights, and other IP
7. Schedule G - Form of Confidentiality Agreement: Standard confidentiality agreement for employees
8. Schedule H - Required Equipment and Inventory: Specifications for required equipment and inventory
9. Schedule I - Reporting Forms: Standard forms for required reporting
10. Appendix 1 - Personal Guaranty: Form of personal guarantee required from sub-franchisee principals
11. Appendix 2 - Disclosure Document Receipt: Acknowledgment of receipt of franchise disclosure document
Authors
Applicable Law
Approved Suppliers
Business Day
Commencement Date
Confidential Information
Development Schedule
Disclosure Document
Effective Date
Force Majeure
Franchise
Franchise System
Franchisor
Gross Sales
Initial Fee
Initial Training
Intellectual Property
Manual
Marketing Fund
Master Franchise Agreement
Master Territory
Net Sales
Operating Standards
Operations Manual
Premises
Proprietary Marks
Renewal Term
Royalty Fee
Sub-Franchise
Sub-Franchise Rights
Sub-Franchise Territory
Sub-Franchisee
Sub-Franchisor
System
Technology Fee
Term
Territory
Trade Secrets
Training Program
Transfer
Working Capital
Governing Law
Disclosure Obligations
Quality Standards
Reporting Period
Cooling-off Period
Principal Owner
Guarantor
Competitive Business
Default
Cure Period
Required Insurance
Advertising Contribution
Brand Standards
Territory
Term and Renewal
Fees and Payments
Royalties
Training and Support
Operations Standards
Quality Control
Intellectual Property
Confidentiality
Non-Competition
Marketing and Advertising
Supply Chain
Reporting Requirements
Audit Rights
Insurance
Transfer and Assignment
Right of First Refusal
Default and Termination
Post-Termination Obligations
Indemnification
Dispute Resolution
Governing Law
Force Majeure
Representations and Warranties
Compliance with Laws
Development Schedule
Site Selection
Technology Requirements
Customer Data Protection
Brand Standards
Disclosure Requirements
Record Keeping
Employee Standards
Equipment and Inventory
Inspection Rights
Performance Standards
Marketing Fund
Advertising Requirements
Relationship of Parties
Notices
Amendment
Integration
Severability
Assignment
Successors and Assigns
Waiver
Further Assurances
Entire Agreement
Food and Beverage
Retail
Hospitality
Personal Services
Business Services
Education and Training
Healthcare Services
Automotive Services
Real Estate Services
Fitness and Recreation
Home Services
Technology Services
Child Care Services
Pet Care Services
Professional Services
Legal
Operations
Business Development
Franchise Development
Compliance
Finance
Brand Management
Training and Development
Sales
Contract Administration
Risk Management
Strategic Planning
Franchise Development Director
Legal Counsel
Chief Executive Officer
Chief Operating Officer
Franchise Operations Manager
Business Development Manager
Compliance Officer
Brand Manager
Training Manager
Territory Development Manager
Contract Administrator
Franchise Support Specialist
General Counsel
Chief Financial Officer
Franchise Sales Director
Regional Operations Director
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