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Franchise Lease Agreement Template for Australia

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Key Requirements PROMPT example:

Franchise Lease Agreement

"I need a Franchise Lease Agreement for a Cafe franchise in Melbourne, Australia, where I'm the franchisor leasing a corner property to a new franchisee, with the lease term starting March 1, 2025, including specific provisions for outdoor seating and early morning trading hours."

Document background
A Franchise Lease Agreement is essential when a franchisor leases premises to a franchisee or controls the lease arrangements for the franchise location. This document is specifically tailored for the Australian market, incorporating requirements from the Franchising Code of Conduct and state-based retail leasing legislation. It serves multiple purposes: establishing the franchise relationship, securing the business location, ensuring compliance with franchise standards, and protecting both parties' interests in the property arrangement. The agreement is particularly important in retail and service-based franchise systems where location and premises presentation are crucial to business success. It includes comprehensive provisions for both the franchise relationship and property management, making it a fundamental document for any franchise system involving premises control.
Suggested Sections

1. Parties: Identification of the franchisor/lessor and franchisee/lessee, including ABN/ACN and registered addresses

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

3. Definitions: Comprehensive definitions covering both franchise and lease-specific terms

4. Grant of Lease: Terms of the lease grant, including premises description and permitted use

5. Term and Option Periods: Duration of lease, commencement date, and any option periods

6. Rent and Other Payments: Base rent, franchise fees, outgoings, security deposit, and payment terms

7. Use of Premises: Permitted use, trading hours, and franchise system requirements

8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

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

10. Assignment and Subletting: Conditions for transfer of lease or franchise rights

11. Default and Termination: Events of default, remedies, and termination procedures

12. Make Good Obligations: End of lease restoration requirements and franchise-specific debranding

13. Dispute Resolution: Process for resolving both lease and franchise disputes

14. General Provisions: Standard boilerplate clauses including governing law and notices

Optional Sections

1. Franchise Territory: Used when the lease premises correspond to a defined franchise territory

2. Development Works: Include when initial fit-out or substantial modifications are required

3. Marketing Fund Contributions: Required if the franchise system includes a marketing fund

4. Competition Restrictions: Used when specific non-compete provisions apply to the premises

5. Multiple Site Provisions: Include when the franchisee operates multiple locations

6. Guarantee Requirements: Used when personal or bank guarantees are required

7. Environmental Obligations: Include for businesses with specific environmental impacts

8. Drive-Through Provisions: Required for premises with drive-through facilities

Suggested Schedules

1. Schedule 1 - Premises Plan: Detailed plan showing the leased premises and common areas

2. Schedule 2 - Rent Schedule: Detailed breakdown of rent calculations and review mechanisms

3. Schedule 3 - Franchise Fees: Schedule of all franchise-related fees and payments

4. Schedule 4 - Fit-out Requirements: Specifications for premises fit-out meeting franchise standards

5. Schedule 5 - Operating Requirements: Detailed franchise system operating procedures for the premises

6. Schedule 6 - Maintenance Schedule: Detailed maintenance obligations and schedules

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage

8. Appendix A - Disclosure Statement: Franchise Code of Conduct required disclosure document

9. Appendix B - Guarantees: Forms of any required guarantees

10. Appendix C - Condition Report: Initial condition report of the premises

Authors

Alex Denne

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

Relevant legal definitions














































Clauses
































Relevant Industries

Retail

Food and Beverage

Automotive

Health and Fitness

Education and Training

Professional Services

Real Estate

Hospitality

Personal Services

Home Services

Relevant Teams

Legal

Property

Operations

Finance

Compliance

Risk Management

Business Development

Real Estate

Franchise Development

Commercial

Relevant Roles

Franchise Development Manager

Property Manager

Legal Counsel

Commercial Leasing Manager

Business Development Manager

Operations Manager

Compliance Officer

Chief Financial Officer

Real Estate Manager

Franchise Operations Director

Risk Manager

Property Portfolio 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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