BUSINESS FRANCHISE AGREEMENT

This Franchise Agreement ("Agreement") is entered into on [Date] between:

FRANCHISOR: [Franchisor Company Name], a [State/Country] corporation with principal office at [Franchisor Address] ("Franchisor")

FRANCHISEE: [Franchisee Name/Company], with address at [Franchisee Address], ID/Tax Number: [ID/Tax Number] ("Franchisee")

RECITALS

WHEREAS, Franchisor owns and operates a business system for [Business Description] using distinctive trademarks, service marks, and proprietary methods;

WHEREAS, Franchisee desires to obtain the right to operate a franchise business using Franchisor's system, marks, and methods;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

ARTICLE 1: FRANCHISE GRANT

1.1 Grant of Franchise. Franchisor grants to Franchisee, and Franchisee accepts, a non-exclusive license to operate a [Brand Name] franchise business at the location: [Franchise Location Address] in accordance with the terms of this Agreement.

1.2 Territory. Territory type (check one):

☐ Exclusive Territory: Franchisor will not establish or franchise another [Brand Name] location within [Radius/Geographic Description]

☐ Non-Exclusive Territory: Franchisor reserves the right to establish additional locations in the area

1.3 Term. The initial term of this Agreement shall be [Number] years, commencing on [Start Date] and ending on [End Date].

ARTICLE 2: FRANCHISE FEES AND ROYALTIES

2.1 Initial Franchise Fee. Franchisee shall pay Franchisor an initial franchise fee of [Amount] ([Amount in Words]), payable upon signing this Agreement. This fee is non-refundable.

2.2 Ongoing Royalty Fee. Franchisee shall pay Franchisor a continuing royalty fee of [Percentage]% of gross sales, payable [Weekly/Monthly] by the [Day] of each period.

2.3 Marketing/Advertising Fee. Franchisee shall contribute [Percentage]% of gross sales to the Franchisor's marketing fund, payable [Weekly/Monthly].

2.4 Other Fees. Additional fees may include:

Technology Fee: [Amount/Percentage] per [Period]
Additional Training Fee: [Amount] per trainee
Renewal Fee: [Amount]
Transfer Fee: [Amount]

2.5 Sales Reporting. Franchisee shall submit accurate sales reports [Weekly/Monthly] and maintain complete financial records available for Franchisor inspection.

ARTICLE 3: TRAINING AND SUPPORT

3.1 Initial Training. Franchisor shall provide initial training at [Training Location] for [Number] days covering all aspects of franchise operations. Franchisee is responsible for travel and accommodation expenses.

3.2 Ongoing Training. Franchisor will provide ongoing training programs, updates, and refresher courses as needed. Franchisee must attend all required training sessions.

3.3 Operations Manual. Franchisor shall provide Franchisee with the confidential Operations Manual containing standards, specifications, and procedures. The Manual may be updated periodically, and Franchisee must comply with all updates.

3.4 Field Support. Franchisor will provide field support visits approximately [Frequency] to assist with operations and ensure quality standards.

3.5 Technology and Systems. Franchisor shall provide access to required technology systems, software, and ongoing technical support.

ARTICLE 4: OPERATIONAL STANDARDS

4.1 Compliance with System. Franchisee shall operate the franchise in strict accordance with Franchisor's standards, specifications, and procedures as outlined in the Operations Manual.

4.2 Hours of Operation. Franchisee shall maintain minimum hours of operation: [Operating Hours], or as specified by Franchisor.

4.3 Appearance and Design. Franchisee shall maintain the franchise location in accordance with Franchisor's design standards, including interior décor, signage, uniforms, and overall appearance.

4.4 Products and Services. Franchisee shall offer only products and services approved by Franchisor and shall not offer unauthorized products or services.

4.5 Approved Suppliers. Franchisee shall purchase inventory, supplies, and equipment only from suppliers approved by Franchisor, or obtain Franchisor's written approval for alternative suppliers.

4.6 Quality Standards. Franchisee shall maintain the highest standards of quality, cleanliness, customer service, and business ethics at all times.

ARTICLE 5: INTELLECTUAL PROPERTY

5.1 Trademark License. Franchisor grants Franchisee a non-exclusive license to use the trademarks, service marks, logos, and trade names: [List Marks] solely in connection with the operation of the franchise.

5.2 Ownership. Franchisee acknowledges that Franchisor owns all rights to the marks, system, and proprietary information. Franchisee acquires no ownership rights.

5.3 Proper Use. Franchisee shall use marks only as authorized and shall not contest Franchisor's ownership or register any similar marks.

5.4 Confidential Information. Franchisee shall maintain the confidentiality of all proprietary information, including the Operations Manual, methods, systems, customer data, and trade secrets, both during and after the term of this Agreement.

ARTICLE 6: FRANCHISEE OBLIGATIONS

Franchisee shall:

Devote full time and best efforts to the operation of the franchise
Pay all fees when due
Maintain required insurance coverage
Comply with all applicable laws and regulations
Maintain accurate books and records
Attend all required training programs
Permit Franchisor inspections and audits
Protect and promote Franchisor's brand reputation
Implement all system updates and changes as required
Not engage in any competing business during the term

ARTICLE 7: INSURANCE

7.1 Required Coverage. Franchisee shall obtain and maintain the following insurance:

Commercial General Liability: minimum [Amount]
Property Insurance: covering all equipment and inventory
Workers' Compensation: as required by law
Business Interruption Insurance
Other: [Specify Additional Coverage]

7.2 Certificate. Franchisee shall name Franchisor as additional insured and provide certificates of insurance before commencing operations and upon each renewal.

ARTICLE 8: RENEWAL

8.1 Renewal Right. Franchisee may renew this Agreement for [Number] additional term(s) of [Number] years each, provided:

Written notice given at least [Number] months before expiration
No uncured defaults
Compliance with performance standards
Execute current form of franchise agreement
Modernize facility to current standards
Pay renewal fee of [Amount]

ARTICLE 9: TRANSFER

9.1 Franchisor Transfer. Franchisor may transfer this Agreement or any rights hereunder without restriction.

9.2 Franchisee Transfer. Franchisee may not transfer this Agreement, the franchise, or any interest therein without Franchisor's prior written consent. If approved, transfer is subject to:

No uncured defaults by Franchisee
Transferee meets Franchisor's qualifications
Transferee completes training
Transferee signs current franchise agreement
Payment of transfer fee: [Amount]
Transferor signs general release

ARTICLE 10: TERMINATION

10.1 Termination by Franchisor. Franchisor may terminate immediately upon written notice if Franchisee:

Becomes insolvent or files bankruptcy
Abandons the franchise
Commits fraud or criminal activity
Fails to pay fees for [Number] days
Unauthorized transfer
Repeated violations

10.2 Cure Period. For other breaches, Franchisor shall provide [Number] days written notice to cure. If not cured, Franchisor may terminate.

10.3 Post-Termination Obligations. Upon termination or expiration, Franchisee shall:

Immediately cease using all marks and proprietary materials
Pay all outstanding fees and obligations
Return all confidential materials including Operations Manual
Remove all signage and identifying materials
Comply with non-compete covenant

ARTICLE 11: NON-COMPETE COVENANT

11.1 During Term. During the term of this Agreement, Franchisee shall not, directly or indirectly, own, operate, or have any interest in any business competitive with Franchisor's business.

11.2 Post-Termination. For [Number] years after termination, Franchisee shall not operate or have any interest in a competitive business within [Radius] of the franchise location or any other [Brand Name] location.

11.3 Non-Solicitation. Franchisee shall not solicit or hire Franchisor's employees or employees of other franchisees for [Number] years after termination.

ARTICLE 12: GENERAL PROVISIONS

12.1 Independent Contractor. Franchisee is an independent contractor. This Agreement does not create an employment, partnership, or joint venture relationship.

12.2 Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions and agreements. Any representations not contained herein are not binding.

12.3 Amendments. This Agreement may be amended only by written instrument signed by both parties. Franchisor may amend the Operations Manual unilaterally.

12.4 Governing Law. This Agreement shall be governed by the laws of [State/Country].

12.5 Dispute Resolution. (Check one):

☐ Arbitration: Disputes shall be resolved by binding arbitration in [Location] under rules of [Arbitration Organization]

☐ Mediation then Litigation: Parties shall attempt mediation before litigation. Venue for litigation: [Location]

12.6 Acknowledgments. Franchisee acknowledges:

Receipt and review of this Agreement at least 14 days before signing
Receipt of Franchise Disclosure Document (if applicable)
Opportunity to consult with legal and financial advisors
Understanding that success depends on Franchisee's efforts
No guarantees of financial performance have been made

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

FRANCHISOR:

[Franchisor Company Name]

By: _________________________

Name: [Authorized Representative]

Title: [Title]

Date: _________________________

FRANCHISEE:

[Franchisee Name/Company]

Signature: _________________________

Name: [Franchisee Full Name]

Date: _________________________