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Franchise Broker Agreement Template for Canada

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Key Requirements PROMPT example:

Franchise Broker Agreement

"I need a Franchise Broker Agreement for my Canadian restaurant chain expanding into Western Canada, with exclusive territory rights for British Columbia and Alberta, including a 5% commission structure and minimum performance requirements of 10 qualified leads per quarter starting March 2025."

Document background
A Franchise Broker Agreement is essential when a franchisor wishes to engage professional intermediaries to expand their franchise network in Canada. This document is typically used when a franchisor needs to establish a formal relationship with experienced brokers who will identify, qualify, and introduce potential franchisees. The agreement must comply with various Canadian regulations, including provincial franchise laws (such as Ontario's Arthur Wishart Act), business brokerage regulations, and federal privacy laws. It outlines crucial elements such as territorial rights, commission structures, compliance requirements, and the scope of the broker's authority. The document is particularly important for maintaining regulatory compliance while protecting both the franchisor's interests and the broker's rights in the franchise sales process.
Suggested Sections

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

2. Background: Context of the agreement, brief description of the franchise system, and purpose of engaging a broker

3. Definitions: Key terms used throughout the agreement, including 'Franchise', 'Territory', 'Prospect', 'Qualified Lead', etc.

4. Appointment and Scope: Terms of broker's appointment, exclusivity/non-exclusivity, and detailed scope of services

5. Territory: Definition of geographical area where broker is authorized to operate

6. Broker's Obligations: Detailed responsibilities including lead generation, prospect screening, and compliance requirements

7. Franchisor's Obligations: Support, materials, and information to be provided by the franchisor

8. Commission Structure: Detailed compensation terms, payment triggers, and calculation methods

9. Regulatory Compliance: Requirements for compliance with franchise laws and broker regulations

10. Confidentiality: Protection of confidential information and trade secrets

11. Term and Termination: Duration of agreement, renewal terms, and termination provisions

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

13. Representations and Warranties: Standard representations by both parties

14. Indemnification: Mutual indemnification provisions and liability allocation

15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Training Requirements: Include when broker needs specific training on franchise system - details training programs and certification requirements

2. Marketing Obligations: Include when broker is responsible for marketing activities - specifies approved methods and cost sharing

3. International Provisions: Include for cross-border activities - addresses international compliance and currency issues

4. Sub-Broker Relationships: Include if broker is permitted to engage sub-brokers - defines terms for such arrangements

5. Non-Compete Provisions: Include when restricting broker from representing competing franchise systems

6. Performance Targets: Include when setting specific sales or lead generation targets - defines minimum performance requirements

7. Dispute Resolution: Include when parties want specific arbitration or mediation procedures

Suggested Schedules

1. Schedule A - Commission Structure: Detailed breakdown of commission rates, bonus structures, and payment terms

2. Schedule B - Territory Map: Detailed map and description of broker's authorized territory

3. Schedule C - Required Documentation: Forms, checklists, and templates broker must use in operations

4. Schedule D - Compliance Procedures: Step-by-step procedures for regulatory compliance

5. Schedule E - Approved Marketing Materials: List and samples of authorized marketing materials and usage guidelines

6. Appendix 1 - Broker Qualification Requirements: Required licenses, certifications, and qualifications

7. Appendix 2 - Reporting Templates: Standard forms for activity reporting and lead tracking

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

Healthcare

Education and Training

Automotive

Home Services

Business Services

Personal Care and Beauty

Fitness and Recreation

Real Estate

Relevant Teams

Legal

Franchise Development

Business Development

Compliance

Operations

Executive Leadership

Sales

Contract Administration

Relevant Roles

Franchise Development Director

Franchise Sales Manager

Business Development Manager

Franchise Broker

Legal Counsel

Compliance Officer

Chief Development Officer

Franchise Operations Director

Business Broker

Contract Manager

Chief Executive Officer

Franchise Recruitment 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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