Franchise Agreement Example
Example document for Franchise Agreement. Use this as a reference when creating your own.
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Document: Franchise Agreement
Example Document
Last updated 7/30/2026
FRANCHISE AGREEMENT
This Franchise Agreement is made on the 15th day of June 2024.
BETWEEN:
SuperFix Plumbing Group Pty Ltd ACN 123 456 789 of 100 Trade Street, Sydney NSW (Franchisor)
AND:
John Smith of 50 Home Road, Parramatta NSW (Franchisee)
1. GRANT OF FRANCHISE
1.1 The Franchisor grants the Franchisee the right to operate a SuperFix Plumbing business at the premises located at Unit 2, 20 Industrial Way, Blacktown NSW (The Premises).
1.2 This right is exclusive for the territory described in Schedule 1.
1.3 The Franchisee may not operate any other business from the Premises without the written consent of the Franchisor.
2. TERM OF AGREEMENT
2.1 This Agreement starts on the Commencement Date and continues for a period of 5 years.
2.2 The Franchisee has an option to renew this Agreement for a further term of 5 years provided the Franchisee is not in breach.
3. FRANCHISE FEES
3.1 The Franchisee agrees to pay the Franchisor an initial franchise fee of $45,000.00 (GST inclusive).
3.2 The Franchisee agrees to pay ongoing royalties of 6% of Gross Turnover each month.
3.3 The Franchisee agrees to pay a marketing fund contribution of 2% of Gross Turnover each month.
3.4 All fees are payable within 7 days of the end of each month.
4. PREMISES
4.1 The Franchisee is responsible for obtaining a lease for the Premises.
4.2 The Franchisee must obtain the written approval of the Franchisor before signing the lease.
4.3 The Franchisee must keep the Premises clean, safe, and in good repair.
5. OPERATING STANDARDS
5.1 The Franchisee must operate the Business strictly in accordance with the Operations Manual provided by the Franchisor.
5.2 The Franchisee must only use products and services approved by the Franchisor.
5.3 The Franchisee must wear the approved uniform at all times while working.
5.4 The Franchisee must maintain the opening hours specified in Schedule 2.
[... remaining sections mirror the template with realistic data for a plumbing business ...]
Notes
This example illustrates a typical trade services franchise. Note the specific definition of Gross Turnover to ensure clarity on royalty calculations. The territory restriction in Schedule 1 would typically list postcodes to prevent franchisees from poaching leads from each other. The initial fee of $45,000 includes the cost of the initial van fit-out and stock.
About this Example
Part of the Franchise Agreement document collection
Document Type
Franchise Agreement
A legally binding contract between a franchisor and a franchisee that outlines the terms of operating a franchised business in Australia.