Master Franchise Contract

Master Franchise Contract Template for England and Wales

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Key Requirements PROMPT example:

"I need a Master Franchise Contract for my UK-based coffee shop chain to appoint a master franchisee for Northern Europe, with specific provisions for minimum store opening requirements of 50 locations by January 2025 and strict quality control measures for coffee sourcing."

Document background

The Master Franchise Contract is utilized when a business wishes to expand its franchise network through an intermediary (Master Franchisee) who will develop and manage sub-franchises within a defined territory. This agreement, governed by English and Welsh law, establishes the framework for the relationship, including development schedules, fee arrangements, support obligations, and quality control measures. It's particularly important for international franchise expansion, requiring careful consideration of cross-border trade regulations, intellectual property protection, and territory-specific requirements.

Suggested Sections

1. Parties: Identification and details of the Franchisor and Master Franchisee

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

3. Definitions: Key terms used throughout the agreement

4. Grant of Rights: Scope of master franchise rights, territory, and exclusivity provisions

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

6. Fees and Payments: Initial fees, ongoing royalties, and payment terms

7. Obligations of the Franchisor: Support, training, and ongoing assistance provisions

8. Obligations of the Master Franchisee: Development schedule, operating standards, and reporting requirements

9. Intellectual Property: Protection and usage of trademarks, copyright, and other IP rights

10. Confidentiality: Protection of confidential information and trade secrets

11. Termination: Grounds for termination and consequences

Optional Sections

1. International Trade Provisions: Required when the master franchise involves cross-border operations and international trade considerations

2. Property Requirements: Specifications for premises and locations when the franchise requires physical premises

3. Supply Chain Obligations: Requirements for sourcing products or materials when the franchise involves product distribution

4. Data Protection: Specific GDPR and data protection obligations when personal data processing is involved

Suggested Schedules

1. Territory Schedule: Detailed definition of the territorial rights granted

2. Development Schedule: Timeline and targets for opening sub-franchises

3. Operations Manual: Detailed operating procedures and standards

4. Brand Standards: Specifications for use of trademarks and brand elements

5. Fee Schedule: Detailed breakdown of all fees and payment terms

6. Training Requirements: Initial and ongoing training specifications

7. Form of Sub-Franchise Agreement: Template agreement for use with sub-franchisees

8. KPIs and Reporting Requirements: Performance metrics and reporting templates

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Food & Beverage
Retail
Services
Education
Hospitality

Relevant Teams

Legal
Operations
Finance
Business Development
Compliance
International Development

Relevant Roles

Franchise Development Director
Legal Counsel
Operations Director
Commercial Director
Business Development Manager

Industries

Competition Act 1998: Primary legislation governing competition law in the UK, including provisions on anti-competitive agreements and abuse of dominant market position

Enterprise Act 2002: Legislation dealing with competition law, market investigations, and consumer protection

Consumer Rights Act 2015: Key consumer protection legislation that consolidates and clarifies consumer rights

Companies Act 2006: Primary legislation governing company formation and operation in the UK

Bribery Act 2010: Anti-corruption legislation that addresses bribery and corporate offenses

Data Protection Act 2018 and UK GDPR: Legislation governing the processing and protection of personal data

Trade Marks Act 1994: Legislation protecting trademarks and intellectual property rights

Copyright, Designs and Patents Act 1988: Comprehensive legislation covering various forms of intellectual property protection

Common Law Passing Off: Common law doctrine protecting goodwill of businesses from misrepresentation

Employment Rights Act 1996: Primary legislation governing employment rights and obligations

National Minimum Wage Act 1998: Legislation establishing minimum wage requirements for workers

Equality Act 2010: Legislation prohibiting discrimination and promoting equality in the workplace

Working Time Regulations 1998: Regulations governing working hours, rest periods, and annual leave

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts and limiting exclusion clauses

Misrepresentation Act 1967: Legislation dealing with false statements inducing contract formation

Vertical Agreements Block Exemption Regulation: Retained EU law governing vertical agreements including franchise arrangements

Food Safety Act 1990: Legislation ensuring food safety standards (if applicable to franchise business)

Landlord and Tenant Act 1954: Legislation governing commercial property leases and tenant rights

Law of Property Act 1925: Fundamental property law legislation in England and Wales

Financial Services and Markets Act 2000: Regulation of financial services and markets (if applicable)

Money Laundering Regulations 2017: Regulations preventing money laundering and terrorist financing

BFA Guidelines: British Franchise Association's guidelines for ethical franchising practices

European Code of Ethics for Franchising: Ethical guidelines for franchising adopted by European franchise associations

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Authors

Alex Denne

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