The Master Franchise Agreement is a crucial document used when a franchisor wishes to expand their franchise system through a master franchisee who will develop and manage a specific territory in New Zealand. This agreement is particularly important for businesses looking to scale their operations while maintaining brand consistency and quality standards. The document comprehensively covers all aspects of the master franchise relationship, including development obligations, sub-franchising rights, territorial exclusivity, fee structures, and compliance with New Zealand regulations. It's designed to protect both parties' interests while ensuring successful territory development and system growth. The agreement must comply with New Zealand's legal framework, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant intellectual property laws.
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1. Parties: Identification of the franchisor and master franchisee, including full legal names and addresses
2. Background: Context of the agreement, description of the franchise system, and the purpose of the master franchise arrangement
3. Definitions: Comprehensive definitions of terms used throughout the agreement
4. Grant of Rights: Scope of master franchise rights, territory definition, and exclusivity provisions
5. Term and Renewal: Initial term of the agreement and conditions for renewal
6. Development Schedule: Required timeline and targets for territory development and sub-franchise openings
7. Fees and Payments: Initial fees, ongoing royalties, and revenue sharing structure for sub-franchising
8. Intellectual Property: Rights to use and sub-license the franchise system's IP, including trademarks and know-how
9. Training and Support: Franchisor's obligations for initial and ongoing training and support
10. Sub-Franchising Rights and Obligations: Process and requirements for granting sub-franchises
11. Quality Control: Standards maintenance and compliance requirements
12. Reporting and Audit Rights: Financial reporting requirements and franchisor's audit rights
13. Confidentiality: Protection of confidential information and trade secrets
14. Non-Competition: Restrictions during and after the agreement term
15. Default and Termination: Events of default, termination rights, and procedures
16. Post-Termination Obligations: Obligations and restrictions following agreement termination
17. Dispute Resolution: Process for resolving disputes between parties
18. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Initial Setup Support: Detailed provisions for initial territory setup support, used when the master franchisee is new to the system
2. Marketing Obligations: Specific marketing requirements and cooperation, included when the franchise system has strong marketing requirements
3. Supply Chain Requirements: Required when the franchise system includes mandatory supply arrangements or products
4. Multi-Territory Rights: Used when the master franchisee has rights or options for multiple territories
5. Currency and International Payments: Required for international master franchise agreements
6. Local Adaptation Rights: Included when the master franchisee needs rights to adapt the system for local markets
7. Digital Rights: Required when the franchise includes significant digital or online components
1. Territory Definition: Detailed description and/or maps of the granted territory
2. Development Schedule: Specific targets and timelines for territory development
3. Fee Schedule: Detailed breakdown of all fees, royalties, and payment structures
4. Trademark Schedule: List of all registered and unregistered trademarks included in the rights granted
5. Required Sub-Franchise Agreement Template: Approved form of sub-franchise agreement to be used
6. Operations Manual Table of Contents: Overview of the operations manual contents (without confidential details)
7. Training Program Overview: Details of required initial and ongoing training programs
8. Quality Standards: Detailed quality standards and compliance requirements
9. Reporting Templates: Required formats for financial and operational reporting
10. Supply Chain Requirements: Specifications for approved suppliers and products
Relevant legal definitions
Clauses
Relevant Industries
Retail
Food and Beverage
Hospitality
Professional Services
Education and Training
Automotive
Health and Fitness
Real Estate
Technology Services
Home Services
Beauty and Personal Care
Business Services
Relevant Teams
Legal
Operations
Finance
Business Development
Compliance
Brand Management
Training
Quality Assurance
Commercial
Executive Leadership
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Chief Legal Officer
Franchise Development Manager
Territory Development Manager
Legal Counsel
Commercial Director
Business Development Manager
Operations Director
Compliance Manager
Brand Manager
Finance Director
Training Manager
Quality Assurance Manager
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