Restaurant Licensing Agreement Template for United States

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Key Requirements PROMPT example:

Restaurant Licensing Agreement

"I need a Restaurant Licensing Agreement for my gourmet burger restaurant chain expanding into California, with exclusive territory rights for Los Angeles County and specific provisions for ghost kitchen operations and third-party delivery services, planned to commence March 2025."

Document background
The Restaurant Licensing Agreement is a crucial document used when a restaurant brand owner wishes to expand their concept through licensing rather than traditional franchising or corporate ownership. This agreement, governed by United States federal and state laws, enables the licensor to maintain control over their brand while allowing qualified operators to use their intellectual property, including trademarks, trade secrets, and operational systems. It differs from a franchise agreement in certain legal requirements but still provides comprehensive coverage of operational standards, quality control measures, and brand protection. The document is particularly relevant in situations where the brand owner wants to expand without the full regulatory requirements of franchising, or when entering into strategic partnerships with established operators. The agreement must comply with various U.S. regulations, including federal trademark laws, state-specific restaurant operations requirements, and food safety standards.
Suggested Sections

1. Parties: Identification of the Licensor and Licensee, including full legal names and addresses

2. Background: Context of the agreement, including brief description of the restaurant concept and the parties' intentions

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

4. Grant of License: Scope of the license, including territory, exclusivity/non-exclusivity, and permitted use of intellectual property

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

6. Fees and Payment Terms: License fees, royalties, payment schedules, and calculation methods

7. Quality Control: Standards for maintaining brand quality, including inspection rights and compliance requirements

8. Operating Requirements: Specific operational standards, including menu items, recipes, and service standards

9. Training Requirements: Initial and ongoing training obligations for staff

10. Intellectual Property Protection: Provisions for protecting trademarks, trade secrets, and other IP

11. Marketing and Advertising: Requirements and restrictions for promotional activities

12. Records and Reporting: Requirements for financial records, reports, and audit rights

13. Insurance and Indemnification: Insurance requirements and mutual indemnification provisions

14. Default and Termination: Events of default, remedies, and termination procedures

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

16. General Provisions: Standard legal provisions including governing law, notices, and assignment

Optional Sections

1. Sublicensing Rights: Include when licensee is permitted to sublicense the rights to third parties

2. Development Schedule: Include when the license involves opening multiple locations over time

3. Equipment Requirements: Include when specific proprietary equipment must be used

4. Third-Party Delivery Services: Include when addressing relationships with delivery platforms

5. Ghost Kitchen Operations: Include when permitting operation in virtual kitchen facilities

6. International Operations: Include when license extends to international territories

7. Commissary Requirements: Include when centralized food preparation is required

8. Sustainable Practices: Include when implementing specific environmental or sustainability requirements

Suggested Schedules

1. Schedule A - Licensed Marks: Detailed list of all trademarks, logos, and brand elements covered by the license

2. Schedule B - Licensed Territory: Detailed description and/or maps of the licensed territory

3. Schedule C - Approved Menu Items: Comprehensive list of authorized menu items and recipes

4. Schedule D - Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms

5. Schedule E - Operating Manual: Reference to or summary of the operational procedures and standards

6. Schedule F - Required Equipment: List of mandatory equipment and specifications

7. Schedule G - Training Program: Detailed training requirements and programs

8. Schedule H - Approved Suppliers: List of authorized suppliers for ingredients and materials

9. Appendix 1 - Quality Control Standards: Detailed quality control metrics and compliance requirements

10. Appendix 2 - Brand Standards: Specific requirements for brand presentation and usage

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 & Beverage

Hospitality

Restaurant & Dining

Franchise & Licensing

Food Service

Retail

Intellectual Property

Commercial Real Estate

Food Manufacturing

Culinary Services

Relevant Teams

Legal

Operations

Business Development

Brand Management

Compliance

Finance

Quality Assurance

Training & Development

Food Safety

Commercial

Intellectual Property

Contract Administration

Relevant Roles

General Counsel

Licensing Director

Restaurant Operations Manager

Chief Executive Officer

Brand Manager

Legal Counsel

Business Development Director

Franchise Development Manager

Restaurant Owner

Chief Operating Officer

Compliance Officer

Quality Assurance Manager

Food Safety Director

Training Manager

Chief Financial Officer

Commercial Director

Industries
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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