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Sub Franchise Agreement
"I need a Sub Franchise Agreement for my New Zealand-based retail clothing business, where I'll be the master franchisee granting rights to a sub-franchisee to operate three stores in the Wellington region, with the first store opening planned for March 2025."
1. Parties: Identification of the master franchisee and sub-franchisee, including full legal names and addresses
2. Background: Context of the agreement, including reference to the master franchise agreement and authority to grant sub-franchises
3. Definitions: Comprehensive list of defined terms used throughout the agreement
4. Grant of Sub-Franchise: Specific rights granted to the sub-franchisee, including territory and scope of operations
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Fees and Payments: Initial franchise fee, ongoing royalties, marketing contributions, and payment terms
7. Training and Support: Training requirements and ongoing support provisions from the master franchisee
8. Intellectual Property: Use of trademarks, copyright materials, and other IP owned by the franchisor
9. Operations Manual: Reference to and compliance with the franchise system's operations manual
10. Quality Control: Standards and requirements for maintaining quality and consistency
11. Marketing and Advertising: Marketing obligations and restrictions, including local area marketing
12. Reporting Requirements: Financial and operational reporting obligations
13. Sub-Franchisee Obligations: Detailed responsibilities and commitments of the sub-franchisee
14. Master Franchisee Obligations: Ongoing support and obligations of the master franchisee
15. Insurance: Required insurance coverage and minimum limits
16. Default and Termination: Events of default, remedies, and termination procedures
17. Post-Termination Obligations: Obligations and restrictions after agreement termination
18. Dispute Resolution: Process for resolving disputes, including mediation and arbitration
19. Confidentiality: Protection of confidential information and trade secrets
20. Assignment: Restrictions and conditions for transferring the sub-franchise
21. General Provisions: Standard legal provisions including notices, governing law, and entire agreement
1. Multi-Unit Rights: Used when granting rights to operate multiple units or territories
2. Development Schedule: Include when there are specific timeline requirements for opening multiple units
3. Equipment and Suppliers: Required when specific equipment or approved suppliers are mandatory
4. Employee Requirements: Include when there are specific staffing or training requirements
5. Computer Systems: Used when specific POS or management systems are required
6. E-commerce Rights: Include when online sales or digital presence needs regulation
7. Guarantee: Used when personal guarantees from directors/shareholders are required
8. Right of First Refusal: Include when granting rights to acquire additional territories
9. Change of Control: Used when specific provisions for ownership changes are needed
10. Covid-19 or Force Majeure Provisions: Include specific provisions for managing operations during extraordinary circumstances
1. Territory Description: Detailed description and/or maps of the granted territory
2. Initial Fee Schedule: Breakdown of initial fees and payment structure
3. Ongoing Fees Schedule: Details of recurring fees, royalties, and marketing contributions
4. Initial Training Program: Overview of required initial training and support
5. Approved Products and Services: List of authorized products/services for the sub-franchise
6. Equipment and Fit-out Specifications: Required equipment, furniture, and premises specifications
7. KPIs and Performance Criteria: Measurable performance standards and targets
8. Insurance Requirements: Detailed insurance requirements and minimum coverage
9. Form of Guarantee: Standard form of personal/corporate guarantee if required
10. Intellectual Property Schedule: List of trademarks, copyrights, and other IP included in the grant
11. Required Reports and Forms: Templates for required operational and financial reporting
Authors
Retail
Food and Beverage
Hospitality
Professional Services
Education and Training
Health and Fitness
Automotive
Real Estate
Home Services
Technology
Personal Care Services
Business Services
Child Care
Pet Care
Cleaning Services
Legal
Operations
Finance
Commercial
Compliance
Business Development
Training and Development
Quality Assurance
Brand Management
Risk Management
Franchise Support
Executive Leadership
Franchise Development Manager
Legal Counsel
Operations Director
Chief Executive Officer
Chief Financial Officer
Commercial Director
Business Development Manager
Compliance Officer
Territory Manager
Training Manager
Quality Assurance Manager
Brand Manager
Financial Controller
Risk Manager
Franchise Support Manager
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