Multi Unit Franchise Agreement Template for England and Wales

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Key Requirements PROMPT example:

Multi Unit Franchise Agreement

"I need a Multi Unit Franchise Agreement for my restaurant chain expansion in the South East of England, granting rights to develop 5 units over 3 years starting from January 2025, with specific provisions for halal food preparation and local sourcing requirements."

Document background

The Multi Unit Franchise Agreement is designed for businesses expanding through franchising in England and Wales, where a franchisor wishes to grant rights for multiple unit development to a single franchisee. This comprehensive agreement is particularly suitable for established franchise systems seeking rapid expansion through experienced operators. It includes detailed provisions for unit development scheduling, territory protection, operational standards, and specific performance criteria. The document incorporates requirements under English law, including competition regulations and intellectual property protections, while addressing the complexities of managing multiple units under a single agreement.

Suggested Sections

1. Parties: Details of the franchisor and multi-unit franchisee, including full legal names and registered addresses

2. Background: Context of the agreement, nature of the franchise business, and confirmation of franchisor's rights to grant franchise

3. Definitions: Key terms used throughout the agreement including technical, financial and operational definitions

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

5. Development Schedule: Timeline and requirements for opening multiple units, including minimum performance criteria

6. Fees and Payments: Financial obligations including initial franchise fees, ongoing royalties, development fees and payment terms

7. Obligations of Franchisor: Franchisor's duties including support, training, and ongoing assistance

8. Obligations of Multi-Unit Franchisee: Franchisee's duties including compliance with system standards, reporting requirements, and development obligations

9. Intellectual Property: Usage rights and protection of trademarks, patents, know-how, and confidential information

10. Term and Renewal: Duration of agreement and conditions for renewal

11. Termination: Circumstances allowing termination, notice requirements, and consequences of termination

12. Post-Termination Obligations: Duties of parties after agreement ends, including non-compete and confidentiality obligations

13. Assignment and Transfer: Conditions for transfer of rights and change of control provisions

14. Dispute Resolution: Procedures for handling disputes, including jurisdiction and governing law

Optional Sections

1. Property Requirements: Specific premises requirements, location approval process, and lease terms when franchise requires physical premises

2. Equipment and Supplies: Specifications for required equipment and approved suppliers list when franchise requires specific equipment or supply chain

3. Training Requirements: Initial and ongoing training obligations when specific training programs are mandatory

4. Insurance Requirements: Specific insurance coverage requirements and minimum policy values

5. Data Protection: Compliance with UK GDPR and Data Protection Act 2018 when handling personal data

Suggested Schedules

1. Schedule 1 - Development Schedule: Detailed timeline and targets for opening each unit, including specific locations and deadlines

2. Schedule 2 - Operations Manual: Reference to the confidential operations manual containing standard operating procedures and brand standards

3. Schedule 3 - Territory Map: Detailed geographical boundaries of granted territory for each unit

4. Schedule 4 - Fee Schedule: Comprehensive breakdown of all applicable fees, payment terms and calculation methods

5. Schedule 5 - Approved Suppliers List: List of authorized suppliers, products, and services approved by franchisor

6. Schedule 6 - Form of Individual Unit Agreement: Template franchise agreement to be used for each individual unit under the multi-unit development

7. Schedule 7 - Initial Training Program: Details of required initial training, including duration, location, and content

8. Schedule 8 - Technical Specifications: Detailed specifications for premises, equipment, and fit-out requirements

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Food and Beverage
Retail
Hospitality
Personal Services
Business Services

Relevant Teams

Legal
Operations
Business Development
Finance
Compliance

Relevant Roles

Franchise Development Director
Legal Counsel
Operations Director
Business Development Manager
Chief Executive Officer

Industries

Companies Act 2006: Primary legislation governing corporate structures, business relationships, directors' duties and responsibilities, and company registration requirements

Contract Law Framework: Includes common law principles of contract formation, The Contracts (Rights of Third Parties) Act 1999, and Unfair Contract Terms Act 1977

Competition Law Framework: Comprises Competition Act 1998, Enterprise Act 2002, EU retained law post-Brexit, and block exemption regulations for vertical agreements

Intellectual Property Laws: Includes Trade Marks Act 1994, Copyright, Designs and Patents Act 1988, and Trade Secrets (Enforcement) Regulations 2018

Employment Law Framework: Encompasses Employment Rights Act 1996, National Minimum Wage Act 1998, and Working Time Regulations 1998

Data Protection Legislation: Covers UK GDPR and Data Protection Act 2018 requirements for handling personal data

Consumer Protection Framework: Includes Consumer Rights Act 2015 and Consumer Protection from Unfair Trading Regulations 2008

BFA Code of Ethics: British Franchise Association's ethical guidelines and best practices for franchise operations

Sector-Specific Regulations: Industry-specific regulations and compliance requirements depending on the franchise type (e.g., food, retail, services)

Local Authority Requirements: Local licensing requirements and regulations that may affect franchise operations

Health and Safety Regulations: Workplace safety requirements and standards applicable to franchise operations

Tax Legislation: Relevant tax laws and regulations affecting franchise operations and financial reporting

Property Law: Legal framework governing property rights, leases, and premises-related matters for franchise locations

Dispute Resolution Framework: Legal requirements and procedures for alternative dispute resolution in franchise agreements

Insurance Requirements: Mandatory and recommended insurance coverage for franchise operations

Financial Services Regulations: Regulatory requirements for financial aspects of franchise operations, where applicable

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Let's create your Multi Unit Franchise Agreement

Authors

Alex Denne

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