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Master Franchise License Template for Australia

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Key Requirements PROMPT example:

Master Franchise License

"I need a Master Franchise License Agreement for my Australian coffee shop chain, granting rights for New South Wales and Victoria territories, with a planned commencement date of March 1, 2025, including provisions for at least 25 sub-franchises over 5 years."

Document background
The Master Franchise License is a crucial document used when a franchise business wishes to expand its operations through a master franchisee who will develop and manage a territory in Australia. This agreement type is specifically structured to comply with Australian franchise law, particularly the Franchising Code of Conduct and relevant provisions of the Competition and Consumer Act 2010. It establishes the master franchisee as an intermediary between the franchisor and sub-franchisees, granting them the right to issue sub-franchises while maintaining the franchisor's brand standards and system integrity. The document includes comprehensive provisions for territory development, support services, fee structures, intellectual property protection, and operational requirements, ensuring all parties' interests are protected while facilitating business growth in compliance with Australian regulations.
Suggested Sections

1. Parties: Identification of the franchisor and master franchisee, including full legal names and addresses

2. Background: Context of the agreement, description of the business system, and purpose of the master franchise arrangement

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: Initial term of the agreement and conditions for renewal

6. Fees and Payments: Initial fees, ongoing royalties, and payment terms for both master franchisee and sub-franchisees

7. Obligations of the Franchisor: Support, training, and assistance to be provided by the franchisor

8. Obligations of the Master Franchisee: Development schedule, operational requirements, and sub-franchising obligations

9. Sub-Franchising Process: Procedures and requirements for granting sub-franchises

10. Intellectual Property: Usage rights and restrictions for trademarks, copyrights, and other IP

11. Quality Control: Standards maintenance and compliance requirements

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition: Restrictions during and after the term of the agreement

14. Reporting and Audit Rights: Financial reporting requirements and franchisor's audit rights

15. Insurance: Required insurance coverage and minimum limits

16. Default and Termination: Events of default, termination rights, and consequences

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

18. Dispute Resolution: Procedures for resolving disputes as per Australian law

19. General Provisions: Standard legal provisions including governing law, notices, and assignment

Optional Sections

1. Development Schedule: Required when the agreement includes specific targets for opening sub-franchised units

2. International Trade: Needed when the master franchise involves cross-border operations or international supply chains

3. Supply Arrangements: Required when the master franchisee will act as a supplier to sub-franchisees

4. Marketing Fund: Included when there is a separate marketing fund for the territory

5. Territory Development: Required when specific territory development obligations exist

6. Currency and Exchange: Needed when payments involve multiple currencies

7. Local Adaptation: Required when the system needs significant adaptation for the local market

8. Sub-Franchisor Operations: Included when the master franchisee will operate their own units

Suggested Schedules

1. Territory Description: Detailed description and/or maps of the granted territory

2. Intellectual Property: List of trademarks, copyrights, and other IP included in the license

3. Initial Fee Structure: Breakdown of all initial fees and payment schedules

4. Ongoing Fee Structure: Details of continuing fees, royalties, and payment terms

5. Development Schedule: Timeline and targets for sub-franchise development

6. Training Requirements: Initial and ongoing training programs and requirements

7. Operations Manual Table of Contents: Overview of the operations manual contents

8. Sub-Franchise Agreement Template: Approved form of sub-franchise agreement

9. Brand Standards: Detailed specifications for maintaining brand standards

10. Reporting Forms: Templates for required financial and operational reports

11. Insurance Requirements: Detailed insurance specifications and minimum coverage

12. Confidentiality Agreement: Form of confidentiality agreement for employees and contractors

13. Transfer Forms: Standard forms for transfer of franchise rights

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

Relevant legal definitions


































































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Relevant Industries

Food and Beverage

Retail

Hospitality

Education and Training

Health and Fitness

Professional Services

Automotive

Real Estate

Home Services

Beauty and Personal Care

Technology Services

Child Care

Pet Services

Business Services

Relevant Teams

Legal

Operations

Franchise Development

Business Development

Compliance

Finance

Brand Management

Training

Sales

Executive Leadership

Commercial

Risk Management

International Development

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Franchise Development Manager

Legal Counsel

Operations Director

Business Development Manager

Franchise Operations Manager

Commercial Director

Territory Development Manager

Compliance Officer

Brand Manager

Training Manager

Financial Controller

General Counsel

Managing Director

Franchise Sales Manager

Chief Financial Officer

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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