Franchisor Franchisee Agreement Template for Germany

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Franchisor Franchisee Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Franchisor Franchisee Agreement

"I need a Franchisor Franchisee Agreement for my German restaurant chain expansion, planning to grant exclusive territorial rights for Bavaria, with specific requirements for maintaining our high-end dining standards and protecting our secret recipes."

Document background
The Franchisor Franchisee Agreement is a crucial document used when a business (franchisor) wishes to expand its operations by granting rights to independent operators (franchisees) to use its business system, trademarks, and know-how in Germany. This agreement is particularly significant as Germany lacks specific franchise legislation, requiring careful incorporation of various aspects of civil law, commercial law, and EU regulations. The document must address pre-contractual disclosure requirements under German law, competition regulations at both national and EU levels, and specific provisions regarding intellectual property protection, quality control, and operational standards. It serves as the foundational document governing the entire franchise relationship, outlining everything from initial setup to ongoing operations and eventual termination or renewal conditions.
Suggested Sections

1. Parties: Identification and details of the franchisor and franchisee, including legal form and registration details

2. Background: Description of the franchise system, business concept, and purpose of the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement

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

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

6. Franchise Fees: Initial franchise fee, ongoing royalties, and payment terms

7. Intellectual Property Rights: Usage rights for trademarks, patents, copyright, and know-how

8. Initial Obligations of Franchisor: Training, support, and setup assistance provided by franchisor

9. Ongoing Obligations of Franchisor: Continuing support, updates, and operational assistance

10. Obligations of Franchisee: Operational requirements, standards maintenance, and reporting obligations

11. Operating Manual and System: Compliance with operating procedures and system standards

12. Marketing and Advertising: Marketing obligations, advertising fees, and promotional requirements

13. Quality Control: Quality standards, inspection rights, and compliance requirements

14. Confidentiality: Protection of trade secrets and confidential information

15. Non-Competition: Competition restrictions during and after the agreement

16. Termination: Grounds for termination and termination procedures

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

18. Governing Law and Jurisdiction: Application of German law and jurisdiction provisions

Optional Sections

1. Insurance: Required when specific insurance coverage needs to be mandated for the franchise operation

2. Data Protection: Detailed GDPR compliance section required when significant personal data processing is involved

3. Supply Arrangements: Include when franchisee must purchase supplies from specified suppliers

4. Property and Premises: Required when franchise operation involves specific location requirements

5. Employee Training: Include when extensive employee training programs are part of the franchise system

6. Sub-Franchising Rights: Include when sub-franchising is permitted

7. Development Schedule: Required for multi-unit franchise agreements

8. Internet and E-Commerce: Include when online operations are part of the franchise

Suggested Schedules

1. Schedule 1 - Territory Description: Detailed description and/or maps of the granted territory

2. Schedule 2 - Initial Fee and Royalty Structure: Detailed breakdown of all fees and payment terms

3. Schedule 3 - Licensed Marks: List and images of all licensed trademarks and intellectual property

4. Schedule 4 - Initial Training Program: Details of required initial training

5. Schedule 5 - Opening Requirements: Specifications for premises, equipment, and initial inventory

6. Schedule 6 - Operating Manual Table of Contents: Overview of the operating manual content

7. Schedule 7 - Required Insurance: Specifications of required insurance coverage

8. Schedule 8 - Approved Suppliers: List of approved suppliers and products

9. Appendix A - Form of Confidentiality Agreement: Standard confidentiality agreement for employees

10. Appendix B - Personal Guarantee: Form of personal guarantee if required from franchisee principals

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

Food and Beverage

Retail

Hospitality

Personal Services

Business Services

Automotive

Education and Training

Health and Fitness

Real Estate

Technology Services

Relevant Teams

Legal

Operations

Business Development

Commercial

Compliance

Finance

Brand Management

Training

Quality Assurance

Executive Leadership

Relevant Roles

Franchise Development Director

Legal Counsel

Business Development Manager

Operations Director

Commercial Director

Compliance Officer

Brand Manager

Territory Manager

Training Manager

Quality Assurance Manager

Franchise Operations Manager

Chief Executive Officer

Chief Financial Officer

Business Owner

Franchise Consultant

Industries
German Civil Code (Bürgerliches Gesetzbuch - BGB): Fundamental law governing contractual relationships, including general contract principles, good faith (§242), and pre-contractual disclosure obligations (§311)
German Commercial Code (Handelsgesetzbuch - HGB): Regulates commercial relationships and business transactions between merchants, including provisions on commercial agents that may apply analogously to franchise relationships
Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb - UWG): Regulates fair competition practices and protects against unfair business practices in franchise relationships
Act Against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen - GWB): German antitrust law governing competition aspects of franchise agreements, including territorial restrictions and pricing policies
EU Block Exemption Regulation 330/2010: European competition law regulation providing exemptions for vertical agreements, including franchise agreements
General Data Protection Regulation (GDPR/DSGVO): Regulates the processing of personal data, crucial for customer data handling in franchise systems
German Trade Regulation Act (Gewerbeordnung - GewO): Contains provisions relevant to business operations and licensing requirements for franchises
German Trademark Act (Markengesetz - MarkenG): Governs trademark protection and licensing, essential for franchise intellectual property rights
German Act on General Terms and Conditions (AGB-Recht, part of BGB): Regulates standard form contracts and protects against unfair contract terms in franchise agreements
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

Find the exact document you need

Master Franchise License

A German law-governed agreement granting exclusive rights to develop and manage a franchise system within a territory, including rights to sub-franchise and establish a network of franchisees.

find out more

Area Franchise Agreement

A German law-governed agreement granting territorial franchise development rights with sub-franchising capabilities.

find out more

Sub Franchise Agreement

A German law-governed agreement between a master franchisee and sub-franchisee establishing rights and obligations for operating a franchised business, including territory rights, fees, and operational requirements.

find out more

Area Development Agreement Franchise

A German law-governed agreement between franchisor and area developer for systematic franchise expansion in a defined territory.

find out more

Restaurant Franchise Agreement

A German law-governed agreement establishing a franchise relationship between a restaurant brand owner and operator, detailing operational rights, obligations, and standards.

find out more

Master Franchise Contract

German law-governed agreement establishing a master franchise relationship, granting territory development rights through sub-franchising.

find out more

Individual Franchise Agreement

A German law-governed agreement establishing a franchise relationship between a franchisor and individual franchisee, setting out operational rights, obligations, and business terms.

find out more

Franchise Deposit Agreement

A German law-governed agreement establishing terms for a franchise security deposit, including payment, maintenance, and return conditions.

find out more

Franchise Broker Agreement

A German law-governed agreement establishing the terms and conditions between a franchisor and franchise broker for franchisee recruitment services.

find out more

Direct Franchise Agreement

A German law-governed agreement establishing a direct franchise relationship between franchisor and franchisee, including system rights, operational requirements and ongoing obligations.

find out more

Dealer Franchise Agreement

A German law-governed agreement establishing a franchise relationship between a brand owner and dealer, setting out rights, obligations, and operational requirements for product/service distribution.

find out more

Franchise Partnership Agreement

German law-governed agreement establishing a franchise partnership, detailing operational rights, obligations, and compliance requirements between franchisor and franchisee.

find out more

Franchisor Franchisee Agreement

German law-governed agreement establishing franchise rights and obligations between franchisor and franchisee, including operational, financial, and compliance requirements.

find out more

Franchise Development Agreement

A German law-governed agreement establishing rights and obligations for systematic franchise development within a specified territory.

find out more

Franchise Contract Agreement

German law-governed agreement establishing a franchise relationship between franchisor and franchisee, outlining operational rights, obligations, and compliance requirements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.