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Franchise Lease Agreement

Franchise Lease Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Franchise Lease Agreement

"I need a Franchise Lease Agreement for a UAE-based international coffee shop chain, with the franchisor also acting as landlord, including specific provisions for food preparation areas and outdoor seating arrangements, targeting commencement in March 2025."

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Document background
The Franchise Lease Agreement is utilized when a business wants to establish a franchised operation at a specific location in the UAE, combining both the franchise rights and property lease into a single integrated agreement. This document is particularly relevant for international franchisors entering the UAE market or local franchisors expanding their operations within the emirates. It must comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law), Federal Law No. 5 of 1985 (Civil Code), and relevant emirate-specific property regulations. The agreement addresses both the operational aspects of the franchise and the physical premises requirements, including brand standards, territorial rights, rental terms, and maintenance obligations. It's designed to protect both parties' interests while ensuring compliance with local laws regarding commercial agency relationships and property leasing.
Suggested Sections

1. Parties: Identification of the Franchisor (Landlord), Franchisee (Tenant), and any guarantors

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Franchise: Terms of franchise license, territory rights, and permitted use of intellectual property

5. Grant of Lease: Terms of the property lease, including premises description and permitted use

6. Term and Renewal: Duration of both franchise and lease agreements, renewal conditions and procedures

7. Fees and Rent: Financial terms including franchise fees, royalties, rent, service charges, and payment terms

8. Franchisor's Obligations: Support, training, and services to be provided by the franchisor

9. Landlord's Obligations: Maintenance, insurance, and other landlord responsibilities regarding the premises

10. Franchisee's Obligations: Operational requirements, brand standards, and reporting obligations

11. Tenant's Obligations: Property maintenance, utilities, compliance with regulations, and other tenant duties

12. Intellectual Property: Use of trademarks, trade secrets, and other IP rights

13. Insurance and Indemnity: Required insurance coverage and mutual indemnification provisions

14. Default and Termination: Events of default, remedies, and termination procedures for both franchise and lease aspects

15. Post-Termination: Obligations after termination, including de-branding and property surrender

16. Governing Law and Dispute Resolution: Applicable UAE laws and dispute resolution procedures

Optional Sections

1. Guarantee: Personal or corporate guarantee provisions, used when additional security is required

2. Territory Protection: Specific territorial rights and restrictions, used when exclusive territory rights are granted

3. Sub-Franchising Rights: Terms for sub-franchising, included when sub-franchising is permitted

4. Development Schedule: Timeline for property improvements or franchise development, used for new locations

5. Assignment and Transfer: Detailed provisions for transfer of franchise or lease rights, used in larger franchise systems

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID

7. Local Authority Compliance: Specific provisions for emirate-level compliance, used based on property location

Suggested Schedules

1. Property Description: Detailed description of premises, including floor plans and measurements

2. Financial Terms: Detailed breakdown of all financial obligations including fees, rent, and payment schedules

3. Operating Manual Summary: Key provisions from the franchise operating manual

4. Brand Standards: Specific requirements for maintaining brand standards in the premises

5. Approved Suppliers: List of approved suppliers and contractors for franchise operations

6. Initial Inventory: Required initial inventory and equipment specifications

7. Training Program: Details of required initial and ongoing training programs

8. Maintenance Schedule: Regular maintenance requirements for both franchise operations and property

9. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

10. Form of Guarantee: Template guarantee agreement if applicable

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions




































Clauses




































Relevant Industries

Retail

Food & Beverage

Hospitality

Fashion & Apparel

Healthcare Services

Education & Training

Automotive Services

Beauty & Wellness

Entertainment & Leisure

Professional Services

Relevant Teams

Legal

Operations

Real Estate

Commercial

Compliance

Business Development

Finance

Brand Management

Property Management

Franchise Development

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Franchise Development Manager

Property Manager

Real Estate Director

Commercial Director

Operations Director

Legal Counsel

Franchise Operations Manager

Business Development Manager

Compliance Officer

Property Portfolio Manager

Brand Manager

Regional Director

Leasing 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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