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Franchise Development Agreement

Franchise Development Agreement Template for Australia

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Key Requirements PROMPT example:

Franchise Development Agreement

"I need a Franchise Development Agreement for a national cafe chain expansion in Australia, granting development rights for 25 units across Queensland to be developed by March 2025, with specific provisions for drive-through locations and co-branding opportunities."

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Document background
The Franchise Development Agreement is a crucial document used when a franchisor wishes to expand their franchise system through a developer who will establish multiple franchise units within a defined territory in Australia. This agreement type is distinct from a standard franchise agreement as it focuses on the broader development rights and obligations rather than individual unit operations. It must comply with the Australian Franchising Code of Conduct and related legislation while addressing development schedules, territorial exclusivity, site selection criteria, and construction requirements. The agreement typically includes provisions for fees, development timelines, support services, and the relationship between the development agreement and subsequent unit franchise agreements. It's particularly important for franchisors pursuing rapid expansion or entering new geographic markets through experienced developers.
Suggested Sections

1. Parties: Identification of the franchisor and developer/master franchisee

2. Background: Context of the agreement, including brief description of the franchise system and development rights being granted

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Grant of Development Rights: Scope of development rights, territory, and exclusivity provisions

5. Development Schedule: Timeline and requirements for opening new franchise units

6. Development Fees and Payments: Financial terms including development fees, royalties, and payment schedules

7. Obligations of Developer: Developer's duties including site selection, construction, and operational requirements

8. Obligations of Franchisor: Franchisor's support, training, and assistance obligations

9. Intellectual Property: Usage rights and restrictions for trademarks and system property

10. Confidentiality: Protection of confidential information and trade secrets

11. Term and Renewal: Duration of agreement and conditions for renewal

12. Default and Termination: Events of default, remedies, and termination provisions

13. Post-Termination Obligations: Obligations and restrictions following agreement termination

14. Dispute Resolution: Procedures for resolving disputes as per Franchising Code requirements

15. General Provisions: Standard legal provisions including notices, governing law, and entire agreement

Optional Sections

1. International Development Rights: Include when development rights extend to international territories

2. Sub-Franchising Rights: Include when developer has right to grant sub-franchises

3. Multiple Brand Development: Include when agreement covers development of multiple franchise brands

4. Financing Provisions: Include when franchisor provides or arranges financing

5. Special Development Incentives: Include when offering specific incentives for accelerated development

6. Co-Branding Rights: Include when developer has rights to co-brand with other concepts

7. Right of First Refusal: Include when granting rights for additional territories

8. Development of Alternative Formats: Include when allowing development of non-traditional locations or formats

Suggested Schedules

1. Development Territory: Maps and descriptions of exclusive or non-exclusive territory

2. Development Schedule and Milestones: Detailed timeline for unit openings and development benchmarks

3. Fee Schedule: Comprehensive breakdown of all fees and payments

4. Approved Locations: List of pre-approved or targeted development sites

5. Site Selection Criteria: Specific requirements for acceptable franchise locations

6. Construction and Design Requirements: Specifications for building and designing franchise units

7. Training Requirements: Details of required training programs

8. Form of Unit Franchise Agreement: Template agreement for individual franchise units

9. Financial Requirements: Detailed financial qualifications and ongoing requirements

10. Brand Standards: Specific requirements for maintaining brand standards

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 and Beverage

Hospitality

Personal Services

Business Services

Education and Training

Automotive

Health and Fitness

Real Estate

Technology Services

Home Services

Relevant Teams

Legal

Business Development

Operations

Property

Finance

Compliance

Commercial

Franchise Development

Real Estate

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Chief Development Officer

Franchise Development Manager

Legal Counsel

Commercial Director

Business Development Manager

Operations Director

Property Manager

Franchise Sales Manager

Development Director

Territory Manager

Compliance Officer

Contract Manager

Real Estate 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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