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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."
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
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
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
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
Legal
Operations
Finance
Compliance
Business Development
Property
Training
Marketing
Risk Management
Franchise Relations
Development
Regional Management
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
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