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Franchise Agreement
I need a franchise agreement for a new franchisee in Ireland, detailing the initial franchise fee, ongoing royalty payments, and marketing contributions. The agreement should include a 10-year term with renewal options, training and support provisions, and compliance with local regulations.
What is a Franchise Agreement?
A Franchise Agreement is a binding legal contract between a business owner (franchisor) and someone who wants to use their proven business model (franchisee). Under Irish law, it sets out how the franchisee can use the company's brand name, trading systems, and intellectual property while maintaining consistent standards across all locations.
The agreement covers essential elements like territory rights, royalty payments, training requirements, and quality control measures. It must comply with Irish competition laws and EU regulations on vertical agreements. Most Irish franchise agreements run for 5-10 years and include specific provisions for renewal, termination, and dispute resolution through Irish courts.
When should you use a Franchise Agreement?
Use a Franchise Agreement when expanding your successful business model through independent operators in Ireland. This legal framework becomes essential once you're ready to let others use your brand name, operating systems, and business methods while maintaining control over quality and consistency.
The timing is right when you have proven systems, documented procedures, and protected intellectual property ready for replication. Many Irish businesses implement franchise agreements when entering new markets or regions, particularly in retail, food service, and professional services. Having this agreement in place protects both parties and ensures compliance with Irish competition law and EU franchise regulations.
What are the different types of Franchise Agreement?
- Franchise Contract Agreement: Standard comprehensive agreement covering all basic franchise rights and obligations under Irish law
- Franchise License Agreement: Focuses specifically on intellectual property usage and brand standards
- Franchise Development Agreement: Used for multi-unit development rights within specific territories
- Franchise Lease Agreement: Combines franchise rights with property leasing terms
- Food Franchise Agreement: Tailored for restaurants with specific health, safety, and quality requirements
Who should typically use a Franchise Agreement?
- Franchisors: Business owners who develop and license their business model, typically established Irish companies with proven systems and protected intellectual property
- Franchisees: Independent operators who invest in and run local franchise units, following the franchisor's established systems
- Commercial Solicitors: Draft and review Franchise Agreements to ensure compliance with Irish and EU law
- Business Advisors: Help evaluate franchise opportunities and negotiate terms
- Bank Representatives: Review agreements when providing franchise financing
- Irish Franchise Association: Provides guidance and standards for franchise operations
How do you write a Franchise Agreement?
- Business Details: Gather complete information about your brand, operating systems, and intellectual property rights
- Territory Mapping: Define exact geographical boundaries and exclusivity zones for the franchise operation
- Financial Terms: Calculate initial fees, ongoing royalties, and marketing contributions
- Quality Standards: Document specific operational requirements and performance metrics
- Training Program: Outline initial and ongoing training requirements for franchisees
- Term Length: Decide on agreement duration and renewal conditions
- Automated Generation: Use our platform to create a customised, legally-compliant Franchise Agreement that includes all essential elements under Irish law
What should be included in a Franchise Agreement?
- Party Details: Full legal names, registered addresses, and company numbers of franchisor and franchisee
- Grant of Rights: Specific franchise rights, territory boundaries, and exclusivity terms
- Financial Terms: Initial fees, ongoing royalties, payment schedules, and reporting requirements
- Operating Standards: Detailed quality control measures and compliance with Irish food safety regulations
- Intellectual Property: Trademark usage rights and protection under Irish IP law
- Term and Renewal: Agreement duration, renewal conditions, and termination procedures
- GDPR Compliance: Data protection obligations and privacy requirements
- Dispute Resolution: Irish jurisdiction clause and mediation procedures
What's the difference between a Franchise Agreement and an Agency Agreement?
A Franchise Agreement differs significantly from a Agency Agreement in several key aspects, though both involve business relationships. While both documents establish commercial partnerships under Irish law, their scope, control levels, and operational frameworks are quite different.
- Business Model Control: Franchise Agreements transfer complete business systems and branding, while Agency Agreements simply authorize selling products or services on behalf of another
- Investment Structure: Franchisees make substantial investments in their business, whereas agents typically work on commission without major capital requirements
- Operational Independence: Franchisees operate as independent business owners following strict guidelines, while agents act as representatives of the principal company
- Brand Usage: Franchise Agreements include comprehensive brand and intellectual property rights; Agency Agreements offer limited brand representation rights
- Duration and Commitment: Franchises typically involve long-term commitments (5+ years), while agency relationships can be more flexible and shorter-term
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