The Master Franchise Agreement serves as the foundational document for expanding a franchise system through a master franchisee in Austria. This agreement is utilized when a franchisor wishes to develop their brand in a specific territory through an intermediary (master franchisee) who will be responsible for sub-franchising and maintaining system standards. The document comprehensively addresses Austrian legal requirements, including provisions from the Unternehmensgesetzbuch (UGB) and relevant EU regulations, particularly regarding competition law and vertical agreements. It outlines the complex relationship between franchisor and master franchisee, including development obligations, fee structures, sub-franchising rights, quality control mechanisms, and brand protection measures. This agreement is particularly crucial for international franchisors entering the Austrian market or Austrian franchisors expanding domestically through a master franchise structure.
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1. Parties: Identification of the Franchisor and Master Franchisee, including full legal names, registration details, and addresses
2. Background: Description of the franchise system, business concept, and purpose of the agreement
3. Definitions: Comprehensive list of defined terms used throughout the agreement
4. Grant of Rights: Scope of master franchise rights, territory definition, and exclusivity provisions
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Master Franchisee Obligations: Core duties including development schedule, sub-franchising requirements, and system standards maintenance
7. Franchisor Obligations: Support, training, and assistance to be provided by the franchisor
8. Fees and Payments: Initial fees, ongoing royalties, and revenue sharing structure for sub-franchising
9. Intellectual Property: Usage rights and restrictions for trademarks, patents, and other IP
10. Quality Control: Standards maintenance, inspection rights, and compliance requirements
11. Confidentiality: Protection of confidential information and trade secrets
12. Sub-Franchising Process: Procedures and requirements for granting sub-franchises
13. Training and Support: Initial and ongoing training requirements for master franchisee and sub-franchisees
14. Reporting and Auditing: Financial reporting requirements and audit rights
15. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions
16. Termination: Grounds for termination and post-termination obligations
17. Governing Law and Dispute Resolution: Choice of law, jurisdiction, and dispute resolution mechanisms
1. Non-Compete Provisions: Restrictions on competitive activities, used when specific territorial or business restrictions are needed
2. Development Rights: Rights to develop company-owned units, included when master franchisee has rights to operate own units
3. Import/Export Restrictions: Regulations on cross-border product movement, needed for international operations
4. Local Adaptation Rights: Rights to modify the system for local market, important for international markets
5. Digital Rights: Online presence and e-commerce provisions, needed for digital operations
6. Crisis Management: Procedures for handling emergencies or crises, important in certain industries
7. Environmental Compliance: Environmental standards and requirements, needed for environmentally sensitive businesses
1. Territory Map: Detailed description and/or map of the granted territory
2. Brand Standards Manual: Detailed operational and brand standards requirements
3. Development Schedule: Timeline and targets for sub-franchise development
4. Initial and Ongoing Fees: Detailed fee structure and calculation methods
5. Training Programs: Description of required training programs and materials
6. Approved Suppliers: List of approved suppliers and procurement requirements
7. Standard Sub-Franchise Agreement: Template agreement for use with sub-franchisees
8. Trademark Register: List of registered trademarks and usage guidelines
9. Required Insurance: Detailed insurance requirements and minimum coverage
10. Financial Reporting Forms: Standard forms for financial reporting
11. Initial Investment Schedule: Breakdown of required initial investment
Relevant legal definitions
Clauses
Relevant Industries
Food & Beverage
Retail
Hospitality
Education & Training
Health & Fitness
Professional Services
Automotive
Real Estate
Personal Care & Beauty
Home Services
Technology & Software
Fashion & Apparel
Relevant Teams
Legal
Business Development
Operations
Commercial
International Development
Compliance
Brand Management
Finance
Strategy
Relevant Roles
Chief Executive Officer
Chief Legal Officer
Chief Development Officer
Franchise Development Director
Legal Counsel
Business Development Manager
Operations Director
Commercial Director
Territory Development Manager
Franchise Manager
Brand Manager
Compliance Officer
Contract Manager
International Business Director
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