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Franchise License Agreement for Australia

Franchise License Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes and regulates the relationship between a franchisor and franchisee. This document grants the franchisee the right to operate a business under the franchisor's system and brand, while ensuring compliance with the Australian Franchising Code of Conduct. It details all operational requirements, financial obligations, training requirements, territorial rights, and brand usage guidelines, incorporating necessary protections for intellectual property and maintaining system consistency across the franchise network.

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Franchise License Agreement

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What is a Franchise License Agreement?

The Franchise License Agreement is a crucial legal document used in the Australian business environment when a business (franchisor) wishes to expand its operations by granting rights to other parties (franchisees) to operate under its business system and brand. This agreement must comply with the mandatory Franchising Code of Conduct and other relevant Australian legislation. It comprehensively covers all aspects of the franchise relationship, including initial and ongoing fees, operational requirements, training obligations, territory rights, intellectual property usage, and termination conditions. The document is essential for protecting both parties' interests and ensuring consistent brand standards across the franchise network, while meeting all regulatory requirements specific to the Australian jurisdiction.

What sections should be included in a Franchise License Agreement?

1. Parties: Identification of the franchisor and franchisee, including full legal names and ABNs

2. Background: Context of the agreement, description of the franchise system, and brief history of the brand

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Grant of Franchise: Specific rights being granted, territory details, and exclusivity provisions

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

6. Fees and Payments: Initial franchise fee, ongoing royalties, marketing contributions, and payment terms

7. Franchisor Obligations: Support, training, and services to be provided by the franchisor

8. Franchisee Obligations: Operating standards, compliance requirements, and performance obligations

9. Intellectual Property: Use of trademarks, copyright materials, and protection of system know-how

10. Operations Manual: Reference to and compliance with the operations manual

11. Training Requirements: Initial and ongoing training obligations for the franchisee and staff

12. Marketing and Advertising: Marketing fund contributions, local marketing requirements, and approval processes

13. Records and Reporting: Financial record-keeping requirements and reporting obligations

14. Insurance: Required insurance coverage and minimum amounts

15. Transfer Provisions: Process and conditions for transferring the franchise

16. Termination: Grounds for termination and processes to be followed

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

18. Dispute Resolution: Process for resolving disputes as per Franchising Code requirements

19. Restraint of Trade: Non-compete and confidentiality provisions

20. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a Franchise License Agreement?

1. Online Sales: Provisions for e-commerce operations and territory protection in online sales

2. Equipment Requirements: Specific equipment requirements if the franchise requires specialized equipment

3. Premises Requirements: Detailed requirements for premises if location-specific requirements exist

4. Supply Arrangements: Required suppliers and supply chain obligations if specific suppliers must be used

5. Performance Targets: Specific performance criteria and consequences if the franchise requires minimum performance standards

6. Multiple Unit Provisions: Special provisions for franchisees operating multiple units

7. International Operations: Additional provisions for international franchise operations

8. Environmental Compliance: Special environmental obligations for environmentally sensitive businesses

9. Seasonal Operations: Special provisions for seasonal businesses

What schedules should be included in a Franchise License Agreement?

1. Schedule 1 - Territory Details: Maps and specific description of the granted territory

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, including calculation methods

3. Schedule 3 - Initial Training Program: Details of required initial training

4. Schedule 4 - Equipment and Fit-out Specifications: Required equipment, furniture, and fit-out requirements

5. Schedule 5 - Approved Suppliers: List of approved suppliers and products

6. Schedule 6 - Intellectual Property: Details of all trademarks, copyrights, and other IP

7. Schedule 7 - Initial Investment Schedule: Breakdown of required initial investment

8. Schedule 8 - Key Performance Indicators: Specific performance metrics and targets

9. Schedule 9 - Required Insurance: Detailed insurance requirements and minimum coverage

10. Appendix A - Deed of Confidentiality: Confidentiality agreement for staff and contractors

11. Appendix B - Personal Guarantee: Guarantee form for franchisee directors/shareholders

12. Appendix C - Transfer Documentation: Required forms for franchise transfer

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Licensing Agreement

Sector

Cost

Free to use
Relevant legal definitions






















































Clauses














































Relevant Industries

Retail

Food and Beverage

Automotive

Health and Fitness

Education and Training

Professional Services

Home Services

Beauty and Personal Care

Real Estate

Technology Services

Hospitality

Manufacturing

Distribution

Relevant Teams

Legal

Operations

Finance

Compliance

Business Development

Brand Management

Training

Risk Management

Commercial

Franchise Support

Marketing

Property

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Franchise Development Manager

Legal Counsel

Operations Director

Business Development Manager

Compliance Officer

Brand Manager

Training Manager

Territory Manager

Franchise Support Manager

Commercial Director

Chief Financial Officer

Risk Manager

Intellectual Property Manager

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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