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Restaurant Franchise Agreement Template for Australia

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Key Requirements PROMPT example:

Restaurant Franchise Agreement

"I need a Restaurant Franchise Agreement for my gourmet burger chain expanding into Western Australia, with specific provisions for ghost kitchen operations and third-party delivery services, targeting to launch in March 2025."

Document background
The Restaurant Franchise Agreement is a crucial document used when a restaurant brand owner (franchisor) grants rights to an independent operator (franchisee) to operate a restaurant under their brand and system in Australia. This agreement is essential for protecting the interests of both parties and ensuring consistent brand standards across all franchised locations. It must comply with the Australian Franchising Code of Conduct and various federal and state laws governing franchising, food service, and business operations. The document typically includes detailed provisions for operational standards, quality control, training requirements, financial obligations, intellectual property usage, and territory rights. It's designed to create a clear framework for the franchise relationship while maintaining the brand's integrity and supporting the franchisee's business success.
Suggested Sections

1. Parties: Identification of the franchisor and franchisee, including full legal names and relevant business details

2. Background: Context of the agreement, description of the franchise system, and brief history of the restaurant brand

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Grant of Franchise: Terms of the franchise license, territory rights, and exclusivity provisions

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

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

7. Franchisor Obligations: Support services, training, operations manual, marketing support, and ongoing assistance provided by franchisor

8. Franchisee Obligations: Operational requirements, compliance with standards, reporting obligations, and maintenance of premises

9. Training Requirements: Initial and ongoing training requirements for franchisee and staff

10. Operating Standards: Required adherence to brand standards, quality control, and operational procedures

11. Intellectual Property: Use of trademarks, trade secrets, and other intellectual property

12. Marketing and Advertising: Marketing fund contributions, local advertising requirements, and approval processes

13. Records and Reporting: Financial record-keeping requirements, reporting obligations, and audit rights

14. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

15. Transfer and Assignment: Conditions for transfer of franchise rights and franchisor's right of first refusal

16. Termination: Grounds for termination, cure periods, and consequences of termination

17. Post-Termination Obligations: Obligations after agreement ends, including non-compete and confidentiality

18. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration processes

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

Optional Sections

1. Multi-Unit Development: Include when franchisee has rights to develop multiple locations under specific conditions

2. Equipment Leasing: Include when franchisor provides or requires specific equipment leasing arrangements

3. Third-Party Delivery Services: Include when addressing relationship with delivery platforms and related obligations

4. International Operations: Include for franchises operating across international borders

5. Ghost Kitchen Operations: Include when allowing for delivery-only kitchen operations

6. Co-Branding: Include when permitting operation of other brands within the same premises

7. Sustainability Requirements: Include when implementing specific environmental or sustainability standards

Suggested Schedules

1. Schedule 1 - Franchise Details: Key commercial terms, territory definition, and specific grant details

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

3. Schedule 3 - Premises Requirements: Specifications for restaurant premises, including size, layout, and fit-out requirements

4. Schedule 4 - Initial Training Program: Details of required initial training, including duration, location, and content

5. Schedule 5 - Approved Suppliers: List of approved suppliers and products for restaurant operations

6. Schedule 6 - Menu Items: Approved menu items and pricing guidelines

7. Schedule 7 - Equipment Requirements: Detailed list of required equipment and specifications

8. Schedule 8 - Marketing Guidelines: Specific marketing requirements and approved marketing materials

9. Schedule 9 - Operating Manual Table of Contents: Overview of the operating manual contents (full manual provided separately)

10. Schedule 10 - Key Performance Indicators: Specific performance metrics and minimum requirements

11. Appendix A - Form of Guarantee: Personal guarantee form for franchisee principals

12. Appendix B - Confidentiality Agreement: Standard confidentiality agreement for staff and contractors

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


















































Clauses















































Relevant Industries

Food & Beverage

Hospitality

Restaurant & Catering

Retail

Franchising

Food Service

Quick Service Restaurants

Casual Dining

Fine Dining

Commercial Property

Relevant Teams

Legal

Operations

Finance

Business Development

Compliance

Training & Development

Quality Assurance

Property Management

Brand Management

Commercial

Relevant Roles

Franchise Development Manager

Legal Counsel

Operations Director

Commercial Manager

Chief Executive Officer

Chief Financial Officer

Brand Manager

Restaurant Owner

Business Development Manager

Compliance Officer

Training Manager

Quality Assurance Manager

Property Manager

Area Manager

Franchise Consultant

Restaurant General 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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