Franchise Agreement Template
Template for Franchise Agreement. Customize this template for your specific needs.
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Document: Franchise Agreement
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Version 1 • Last updated 7/30/2026
FRANCHISE AGREEMENT
This Franchise Agreement is made on the [Day] day of [Month] [Year].
BETWEEN:
[Franchisor Name] ACN [ACN Number] of [Address] (Franchisor)
AND:
[Franchisee Name] of [Address] (Franchisee)
1. GRANT OF FRANCHISE
1.1 The Franchisor grants the Franchisee the right to operate a [Business Name] business at the premises located at [Premises Address] (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 [Number] years.
2.2 The Franchisee has an option to renew this Agreement for a further term of [Number] 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 $[Amount] (GST inclusive).
3.2 The Franchisee agrees to pay ongoing royalties of [Number]% of Gross Turnover each month.
3.3 The Franchisee agrees to pay a marketing fund contribution of [Number]% of Gross Turnover each month.
3.4 All fees are payable within [Number] 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.
6. TRADEMARKS AND INTELLECTUAL PROPERTY
6.1 The Franchisor grants the Franchisee a licence to use the Trademarks listed in Schedule 3.
6.2 The Franchisee acknowledges that the Franchisor owns all Intellectual Property rights in the system.
6.3 The Franchisee must not alter or modify the Trademarks in any way.
7. TRAINING
7.1 The Franchisor will provide the Franchisee with [Number] days of initial training.
7.2 The Franchisee must attend all training sessions and pass all required assessments.
7.3 The Franchisee is responsible for all travel and accommodation costs associated with training.
8. ADVERTISING AND MARKETING
8.1 The Franchisee must participate in the national marketing fund.
8.2 The Franchisee must spend a minimum of $[Amount] per month on local marketing.
8.3 All marketing material must be approved by the Franchisor before it is used.
9. OBLIGATIONS OF THE FRANCHISEE
9.1 The Franchisee must comply with all applicable laws including the Fair Work Act 2009 and the Work Health and Safety Act 2011.
9.2 The Franchisee must keep accurate financial records and provide the Franchisor with monthly reports.
9.3 The Franchisee must not disclose any confidential information to any third party.
10. OBLIGATIONS OF THE FRANCHISOR
10.1 The Franchisor will provide the Franchisee with the Operations Manual and regular updates.
10.2 The Franchisor will provide ongoing support and advice.
10.3 The Franchisor will conduct regular site visits to ensure compliance.
11. ASSIGNMENT AND SALE
11.1 The Franchisee may not assign this Agreement without the written consent of the Franchisor.
11.2 The Franchisor will not unreasonably withhold consent if the proposed assignee meets the selection criteria.
11.3 The Franchisee must pay a transfer fee of $[Amount] upon assignment.
12. TERMINATION
12.1 The Franchisor may terminate this Agreement if the Franchisee commits a material breach and fails to remedy it within [Number] days.
12.2 The Franchisee may terminate this Agreement by giving [Number] months written notice.
12.3 Upon termination, the Franchisee must cease using the Trademarks and return all manuals and equipment.
13. DISPUTE RESOLUTION
13.1 If a dispute arises, the parties must first try to resolve it through good faith negotiations.
13.2 If the dispute is not resolved, the parties may refer the matter to mediation.
13.3 This dispute resolution process complies with the Franchising Code of Conduct.
14. GENERAL PROVISIONS
14.1 This Agreement is governed by the laws of [State/Territory].
14.2 This Agreement represents the entire understanding between the parties.
SIGNED BY:
[Authorised Signatory - Franchisor]
[Authorised Signatory - Franchisee]
WITNESSED BY:
[Witness Name]
[Witness Name]
SCHEDULES
Schedule 1: Territory [Description of Territory]
Schedule 2: Opening Hours [Opening Hours Details]
Schedule 3: Trademarks [List of Trademarks]
About this Template
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.