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Non Exclusive Franchise Agreement Template for Australia

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Key Requirements PROMPT example:

Non Exclusive Franchise Agreement

"I need a Non-Exclusive Franchise Agreement for my retail clothing business expanding into Western Australia, with provisions for multiple franchisees in each major city and a requirement for all franchisees to participate in our national e-commerce platform starting March 2025."

Document background
The Non-Exclusive Franchise Agreement is a fundamental document used when a business (franchisor) wishes to expand its operations through franchising while retaining the right to appoint multiple franchisees in the same area. This agreement type is particularly relevant in the Australian market, where it must comply with the Franchising Code of Conduct and related legislation. It establishes the framework for the franchise relationship, including detailed provisions for business operations, brand standards, territory definitions, fee structures, and support services. The non-exclusive nature allows for strategic market development while protecting the franchisor's ability to grow the network through multiple franchisees. This agreement is essential for businesses expanding through franchising in Australia and requires careful consideration of both parties' rights and obligations under Australian law.
Suggested Sections

1. Parties: Identification of the franchisor and franchisee with full legal details

2. Background: Context of the agreement, description of the franchise system, and business concept

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Grant of Franchise: Terms of the non-exclusive franchise rights, territory definition, and reserved rights

5. Term and Renewal: Initial term of the agreement and conditions for renewal

6. Fees and Payments: Initial franchise fee, ongoing royalties, marketing contributions, and payment terms

7. Franchisor Obligations: Support, training, and services provided by the franchisor

8. Franchisee Obligations: Operating standards, compliance requirements, and performance obligations

9. Operations Manual: Reference to and compliance with the operations manual

10. Intellectual Property: Use of trademarks, copyright, and other IP rights

11. Marketing and Advertising: Marketing requirements, contributions, and approval processes

12. Reports and Audits: Financial reporting requirements and audit rights

13. Insurance: Required insurance coverage and minimum limits

14. Transfer and Assignment: Conditions for transferring the franchise rights

15. Termination: Grounds for termination and processes

16. Post-Termination Obligations: Duties and restrictions after agreement ends

17. Dispute Resolution: Process for resolving disputes as per Franchising Code requirements

18. Confidentiality: Protection of confidential information and trade secrets

19. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Multi-Unit Development: Include when franchisee has rights to develop multiple units

2. Equipment and Fit-out: Include for retail or hospitality franchises requiring specific equipment or premises setup

3. Supply Arrangements: Include when specific supplier relationships or arrangements are required

4. Online Operations: Include for franchises with e-commerce components

5. Training Requirements: Include when specific ongoing training programs are mandatory

6. Territory Development: Include when minimum performance targets for territory development apply

7. Sub-Franchising Rights: Include if sub-franchising is permitted

8. Personal Guarantees: Include when personal guarantees from franchisee directors are required

Suggested Schedules

1. Schedule 1 - Territory Description: Detailed description and/or maps of the franchise territory

2. Schedule 2 - Initial Fee and Ongoing Payments: Detailed breakdown of all fees, royalties, and payment structures

3. Schedule 3 - Initial Training Program: Details of required initial training and support

4. Schedule 4 - Approved Products and Services: List of authorized products/services and specifications

5. Schedule 5 - Intellectual Property: Details of licensed trademarks, copyrights, and other IP

6. Schedule 6 - Initial Equipment and Inventory: Required starting equipment and inventory specifications

7. Schedule 7 - Key Performance Indicators: Specific performance metrics and targets

8. Schedule 8 - Disclosure Document: Franchising Code of Conduct required disclosure document

9. Appendix A - Operations Manual Table of Contents: Overview of operations manual content

10. Appendix B - Standard Operating Procedures: Key operational procedures and requirements

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

Hospitality

Professional Services

Health and Fitness

Education and Training

Automotive

Real Estate

Home Services

Business Services

Relevant Teams

Legal

Operations

Finance

Compliance

Business Development

Brand Management

Training

Territory Management

Executive Leadership

Commercial

Relevant Roles

Franchise Development Manager

Legal Counsel

Chief Executive Officer

Chief Operating Officer

Business Development Manager

Franchise Operations Manager

Commercial Director

Compliance Officer

Chief Financial Officer

Brand Manager

Territory Manager

Training 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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