Direct Franchise Agreement Template for England and Wales

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

4.6 / 5
4.8 / 5

Let's create your Direct Franchise 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:

Direct Franchise Agreement

"I need a Direct Franchise Agreement for my coffee shop chain expanding into Manchester, with specific provisions for product sourcing from our approved Italian suppliers and strict quality control measures for coffee preparation, to be effective from March 2025."

Document background
The Direct Franchise Agreement is the primary legal instrument used when establishing a franchise relationship in England and Wales. It is particularly suitable when a franchisor wishes to grant direct franchising rights to individual franchisees without intermediary master franchisees or area developers. The agreement comprehensively covers intellectual property rights, operational standards, financial obligations, and territory restrictions. This document is essential for protecting both parties' interests and ensuring consistent brand standards across the franchise network.
Suggested Sections

1. Parties: Identification and details of the franchisor and franchisee

2. Background: Context of the franchise arrangement and business system

3. Definitions: Key terms used throughout the agreement

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

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

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

7. Intellectual Property Rights: Usage of trademarks, copyright, and know-how

8. Operations Manual: Reference to and compliance with operations manual

9. Training and Support: Franchisor's obligations regarding training and ongoing support

10. Termination: Grounds and procedures for termination

Optional Sections

1. Supply Arrangements: Product sourcing requirements - use when franchise involves specific product requirements

2. Premises: Requirements for business location - use for location-dependent franchises

3. Employee Requirements: Staffing obligations and standards - use when specific employee qualifications are needed

Suggested Schedules

1. Territory Schedule: Detailed description of granted territory

2. Fee Schedule: Detailed breakdown of all fees and payment terms

3. Brand Standards: Specific requirements for maintaining brand consistency

4. Initial Training Program: Details of required initial training

5. KPIs and Reporting Requirements: Performance metrics and reporting obligations

6. Approved Suppliers List: List of authorized suppliers if applicable

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
Industries

Companies Act 2006: Primary legislation governing corporate entities, their relationships, and directors' duties and responsibilities in the UK

Competition Act 1998: Regulates anti-competitive agreements, abuse of dominant market position, and territorial restrictions in franchise arrangements

Consumer Rights Act 2015: Applies to consumer-facing franchise businesses, setting standards for quality of goods/services and consumer protection

Trade Marks Act 1994: Protects intellectual property rights related to trademarks, crucial for franchise branding and identity

Copyright, Designs and Patents Act 1988: Governs intellectual property protection for copyrights, designs, and patents within franchise systems

UK GDPR: Regulates data protection and privacy requirements for handling personal data in franchise operations

Data Protection Act 2018: UK's implementation of data protection requirements, complementing UK GDPR

Unfair Contract Terms Act 1977: Controls unfair terms in business contracts, including franchise agreements

Misrepresentation Act 1967: Protects against false statements or misrepresentations made during franchise negotiations

Employment Rights Act 1996: Governs employment relationships and rights that may affect franchise operations and staff management

National Minimum Wage Act 1998: Ensures compliance with minimum wage requirements for franchise employees

Working Time Regulations 1998: Regulates working hours and conditions for employees in franchise businesses

Food Safety Act 1990: Applicable to food-related franchises, ensuring compliance with food safety standards

British Franchise Association Guidelines: Industry-specific guidelines providing best practices and ethical standards for franchising in the UK

European Code of Ethics for Franchising: Professional guidelines establishing ethical principles and good practices in European franchising

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

Standard Franchise Agreement

find out more

Restaurant Franchise Agreement

find out more

Retail Franchise Agreement

find out more

Non Exclusive Franchise Agreement

find out more

Multi Unit Franchise Agreement

find out more

Master Franchise Contract

find out more

Individual Franchise Agreement

find out more

Franchise Sale Agreement

find out more

Franchise Lease Agreement

find out more

Franchise Deposit Agreement

find out more

Franchise Business Agreement

find out more

Franchise Broker Agreement

find out more

Exclusive Territory Franchise Agreement

find out more

Direct Franchise Agreement

find out more

Dealer Franchise Agreement

find out more

Franchise Licence Agreement

A legal agreement under English and Welsh law governing the relationship between franchisor and franchisee, establishing rights and obligations for operating a franchised business.

find out more

Manufacturing Franchise Agreement

An English law agreement governing manufacturing rights and obligations between franchisor and franchisee, including quality standards and IP rights.

find out more

Franchise Operating Agreement

A legal agreement under English law governing the relationship between franchisor and franchisee, establishing operational rights and obligations for running a franchised business.

find out more

Franchise Purchase Agreement

A legal agreement under English and Welsh law governing the purchase and operation of a franchise business, including rights, obligations, and operational requirements.

find out more

Franchise Partnership Agreement

A legal agreement under English and Welsh law establishing the terms and conditions for operating a franchise business, including rights, obligations, and operational requirements of both franchisor and franchisee.

find out more

Franchisor Franchisee Agreement

A legal agreement under English and Welsh law establishing the terms and conditions under which a franchisee can operate a franchisor's business system.

find out more

Franchise Transfer Agreement

An agreement under English and Welsh law facilitating the transfer of franchise rights and obligations from one franchisee to another, with franchisor approval.

find out more

Franchise Development Agreement

An English law agreement governing the development of multiple franchise units in a specified territory by an appointed developer.

find out more

Area Development Agreement

A legal agreement under English and Welsh law governing multi-unit development rights within a specified territory.

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.