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Multi Unit Franchise Agreement Template for Australia

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Key Requirements PROMPT example:

Multi Unit Franchise Agreement

"I need a Multi Unit Franchise Agreement for a quick-service restaurant chain in Australia, granting rights to develop 5 units across New South Wales over 3 years, with the first unit to open by March 2025 and including provisions for potential sub-franchising rights."

Document background
The Multi Unit Franchise Agreement is utilized when a franchisor grants rights to a franchisee to develop and operate multiple franchise units within specified territories in Australia. This agreement type is more complex than a single-unit franchise agreement, as it must address the additional complications of multiple location development, territory protection, and cross-unit operations. The document must strictly comply with Australian legislation, particularly the Franchising Code of Conduct, Competition and Consumer Act, and relevant state laws. It includes comprehensive provisions for development schedules, operational standards, financial obligations, and reporting requirements across multiple units. This agreement is particularly suitable for experienced franchisees or companies with the financial and operational capability to develop multiple units, and it often includes more sophisticated provisions for territory development, support systems, and cross-default mechanisms.
Suggested Sections

1. Parties: Identification of the franchisor and multi-unit franchisee, including their legal status and contact details

2. Background: Context of the agreement, description of the franchise system, and the basis for granting multiple units

3. Definitions: Comprehensive glossary of terms used throughout the agreement, including multi-unit specific terminology

4. Grant of Franchise: Terms of the multi-unit franchise grant, including development rights and territorial exclusivity

5. Term and Renewal: Duration of the agreement, renewal conditions, and development schedule requirements

6. Development Schedule: Mandatory timeline for opening and operating multiple franchise units

7. Fees and Payments: Financial obligations including initial fees, royalties, and marketing contributions for multiple units

8. Territorial Rights: Definition of territories for each unit and protection rights

9. Training and Support: Franchisor's obligations for initial and ongoing training across multiple units

10. Operations and Standards: Operating requirements and quality standards for all units

11. Marketing and Advertising: Marketing obligations and rights for multiple units, including local and national campaigns

12. Intellectual Property: Use of trademarks, systems, and proprietary information across multiple units

13. Reporting and Auditing: Financial reporting requirements and audit rights for all units

14. Insurance and Indemnification: Required insurance coverage and indemnification obligations

15. Default and Termination: Conditions for default and termination, including unit-specific and system-wide implications

16. Post-Termination Obligations: Obligations and restrictions following termination

17. Dispute Resolution: Procedures for resolving disputes in compliance with the Franchising Code of Conduct

18. Assignment and Transfer: Rights and procedures for transferring units or the entire multi-unit agreement

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

Optional Sections

1. Cross-Default Provisions: Provisions linking the performance and compliance of multiple units, used when stronger system-wide controls are desired

2. Sub-Franchising Rights: Terms for granting sub-franchising rights, included when the multi-unit operator has the right to sub-franchise

3. International Operations: Specific provisions for international operations, needed when units may be developed across different countries

4. Equipment Leasing: Terms for equipment leasing arrangements, included when the franchisor provides equipment to units

5. Development Financing: Provisions regarding financing arrangements for unit development, included when specific financing terms are offered

6. Area Development Rights: Additional rights and obligations for developing an entire territory, used in area development agreements

7. Co-Branding Rights: Terms for operating co-branded units, included when multiple brands may be operated together

8. Special Venue Rights: Provisions for operating in special venues (airports, hospitals, etc.), included for non-traditional locations

Suggested Schedules

1. Schedule 1 - Unit Development Schedule: Detailed timeline and locations for developing each franchise unit

2. Schedule 2 - Approved Locations: List and details of approved locations for each franchise unit

3. Schedule 3 - Fee Schedule: Comprehensive breakdown of all fees, including any multi-unit discounts

4. Schedule 4 - Territory Maps: Detailed maps and descriptions of exclusive territories for each unit

5. Schedule 5 - Initial Training Program: Details of required initial training for each unit

6. Schedule 6 - Operations Manual Table of Contents: Index of the operations manual (full manual provided separately)

7. Schedule 7 - Equipment and Inventory Requirements: Specifications for required equipment and inventory for each unit

8. Schedule 8 - Approved Suppliers: List of approved suppliers and terms of supply

9. Schedule 9 - Reporting Requirements: Forms and schedules for required financial and operational reporting

10. Schedule 10 - Insurance Requirements: Detailed insurance requirements for each unit

11. Appendix A - Compliance Checklist: Checklist for ongoing compliance requirements

12. Appendix B - Transfer Procedures: Detailed procedures for unit transfers

13. Appendix C - Standard Unit Specifications: Design and layout specifications for standard units

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

Food and Beverage

Retail

Hospitality

Health and Fitness

Education and Training

Automotive Services

Professional Services

Home Services

Beauty and Personal Care

Real Estate

Healthcare

Child Care

Technology Services

Quick Service Restaurants

Relevant Teams

Legal

Operations

Finance

Compliance

Business Development

Property

Training

Marketing

Risk Management

Franchise Relations

Development

Regional Management

Relevant Roles

Franchise Development Manager

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Legal Counsel

Compliance Officer

Operations Director

Territory Manager

Business Development Manager

Property Manager

Training Manager

Marketing Director

Finance Manager

Risk Manager

Franchise Relations Manager

Development Director

Area Manager

Regional 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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