Non Exclusive Franchise Agreement Template for England and Wales

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Key Requirements PROMPT example:

Non Exclusive Franchise Agreement

"I need a Non Exclusive Franchise Agreement for my fast-food restaurant chain in Manchester, allowing multiple franchisees to operate within the city limits, with specific provisions for delivery services and ghost kitchens to be operational by March 2025."

Document background
The Non-Exclusive Franchise Agreement is essential for businesses expanding through franchising in England and Wales while maintaining flexibility in market development. It provides a comprehensive framework for the franchise relationship, covering intellectual property rights, operational standards, financial obligations, and territory rights. Unlike exclusive agreements, this format allows the franchisor to appoint multiple franchisees in the same area, making it particularly suitable for urban markets or rapid expansion strategies. The agreement must comply with UK competition law, consumer protection legislation, and industry-specific regulations.
Suggested Sections

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

2. Background: Context of the agreement and brief description of the franchise business

3. Definitions: Key terms used throughout the agreement

4. Grant of Franchise: Terms of the non-exclusive franchise rights being granted

5. Territory: Geographical area where franchise rights are granted

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

7. Obligations of Franchisor: Support, training, and services provided by franchisor

8. Obligations of Franchisee: Operating requirements and standards

9. Intellectual Property: Use of trademarks, copyright, and other IP

10. Term and Termination: Duration and circumstances for ending agreement

Optional Sections

1. Development Schedule: Timeline for opening multiple units - used for multi-unit franchises

2. International Operations: Special provisions for cross-border operations - used for international franchises

3. Online Rights: E-commerce and digital presence provisions - used when online sales are relevant

Suggested Schedules

1. Operations Manual Summary: Key aspects of the franchise operating procedures

2. Brand Standards: Detailed requirements for maintaining brand consistency

3. Territory Map: Detailed definition of geographical territory

4. Initial Training Programme: Details of required initial training

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

6. Equipment and Inventory Requirements: List of required equipment and inventory standards

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

Competition Act 1998: Primary UK legislation governing competition law, including provisions for anti-competitive agreements and abuse of dominant market position. Particularly relevant for territory restrictions and pricing policies in franchise agreements.

Trading Schemes Act 1996: Regulates trading schemes and protects against pyramid schemes. Important for distinguishing legitimate franchise operations from prohibited trading schemes.

Consumer Rights Act 2015: Consolidates consumer protection law, relevant when franchise operations involve direct consumer interactions and sales.

Bribery Act 2010: Sets out anti-bribery provisions that franchisors and franchisees must comply with in their business operations.

Data Protection Act 2018 and UK GDPR: Governs the processing and handling of personal data, crucial for customer data management and sharing between franchisor and franchisee.

UK Vertical Agreements Block Exemption Order: Post-Brexit regulation providing block exemption for certain vertical agreements, including franchise agreements, from competition law prohibitions.

Sale of Goods Act 1979: Governs the sale of goods in business transactions, relevant for product-based franchises and supply arrangements.

Supply of Goods and Services Act 1982: Regulates the provision of services, important for service-based franchises and the franchisor-franchisee relationship.

Employment Rights Act 1996: Important for establishing clear distinction between franchisee status and employment relationships to avoid misclassification.

Consumer Protection from Unfair Trading Regulations 2008: Protects consumers from unfair practices, affecting how franchises can market and sell to consumers.

Business Protection from Misleading Marketing Regulations 2008: Governs B2B marketing practices, particularly relevant for franchisor's recruitment of franchisees and marketing claims.

Common Law Contract Principles: Fundamental principles of contract law under English common law system, including offer, acceptance, consideration, and intention to create legal relations.

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

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