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Non Exclusive Franchise Agreement Template for Canada

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Key Requirements PROMPT example:

Non Exclusive Franchise Agreement

"I need a Non-Exclusive Franchise Agreement for my Canadian coffee shop chain, allowing franchisees to operate in Ontario and Quebec, with specific provisions for local sourcing requirements and the option for franchisees to operate multiple locations starting March 2025."

Document background
The Non-Exclusive Franchise Agreement is a fundamental document used in Canadian franchise operations where the franchisor wishes to maintain flexibility in granting franchise rights within specified territories. This agreement is particularly important in expanding business operations while maintaining brand consistency and operational standards across multiple locations. It must comply with provincial franchise legislation in provinces such as Ontario (Arthur Wishart Act), Alberta (Franchises Act), and other jurisdictions with specific franchise regulations. The document includes detailed provisions for operational requirements, fee structures, territory definitions, and brand usage rights, while explicitly preserving the franchisor's right to operate or grant additional franchises within the same territory. This type of agreement is commonly used in competitive markets where multiple franchise locations can coexist and serve the same general area.
Suggested Sections

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

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

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

4. Grant of Franchise: Specific rights granted, territory definition, and non-exclusive nature of the franchise

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

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

7. Franchisor's Obligations: Training, support, operations manual, ongoing assistance, and other franchisor commitments

8. Franchisee's Obligations: Operational standards, compliance requirements, reporting obligations, and performance standards

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

10. Marketing and Advertising: Marketing requirements, advertising fund contributions, and local marketing obligations

11. Records and Reporting: Financial records maintenance, reporting requirements, and audit rights

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

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

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

15. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures

16. General Provisions: Standard contract clauses including governing law, notices, and entire agreement

Optional Sections

1. Multi-Unit Development: Used when granting rights to develop multiple franchise units under specific conditions and timelines

2. E-commerce Rights: Required when addressing online sales channels and territorial protection in digital commerce

3. International Operations: Necessary for franchises operating across international borders, addressing import/export requirements

4. Equipment Leasing: Include when the franchisor leases equipment to the franchisee

5. Supply Chain Requirements: Detailed when specific supplier relationships or exclusive supply arrangements exist

6. Co-Branding: Required when allowing operation of other brands or businesses within the franchise premises

7. Training Program Fees: Include when additional training programs are offered beyond initial training

8. Guarantees and Security: Used when personal guarantees or additional security is required from franchisee principals

Suggested Schedules

1. Schedule A - Territory Description: Detailed description of the granted territory including maps and boundaries

2. Schedule B - Initial Fees and Payments: Comprehensive breakdown of all initial fees, deposits, and payment schedules

3. Schedule C - Equipment and Inventory Requirements: List of required equipment, inventory levels, and approved suppliers

4. Schedule D - Initial Training Program: Details of mandatory initial training, duration, location, and attendees

5. Schedule E - Operations Standards: Key operational requirements and performance standards

6. Schedule F - Approved Products and Services: List of authorized products and services that may be offered

7. Schedule G - Intellectual Property: Details of licensed trademarks, patents, and copyrighted materials

8. Schedule H - Form of Confidentiality Agreement: Standard confidentiality agreement for employees and contractors

9. Schedule I - Personal Guarantee: Form of personal guarantee required from franchisee principals

10. Appendix 1 - Financial Reporting Forms: Standard forms for required financial reporting

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

Automotive

Education and Training

Professional Services

Health and Fitness

Real Estate

Home Services

Business Services

Personal Care Services

Technology Services

Relevant Teams

Legal

Operations

Business Development

Finance

Compliance

Brand Management

Training and Development

Quality Assurance

Sales

Executive Leadership

Franchise Relations

Commercial

Relevant Roles

Franchise Development Manager

Legal Counsel

Business Development Director

Operations Manager

Compliance Officer

Chief Executive Officer

Chief Financial Officer

Brand Manager

Territory Manager

Training Coordinator

Quality Assurance Manager

Franchise Relations Manager

Commercial Director

Business Owner

Corporate Counsel

Franchise Sales Director

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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