A franchise agreement outlines the proposed relationship between a franchisor and franchisee.
The sample can help organize territory, brand use, fees, operating responsibilities, support, and exit arrangements for discussion. Franchise transactions need terms and disclosures specific to the arrangement; treat the editable document as a draft for professional review.
| File type | Word (.docx) |
|---|---|
| Category | Agreement Templates |
| Cost | Free |
What a Franchise Agreement Covers
A franchise agreement lets a franchisee run a business under the franchisor’s brand and system in return for fees. It is usually long and detailed; this template gives you the structure so you can see what must be negotiated.
- Grant of franchise and territory (exclusive or not)
- Initial franchise fee and ongoing royalties, often a percentage of sales
- Marketing fund contributions
- Training, operations manual and support from the franchisor
- Brand and trademark use rules
- Term, renewal and transfer conditions
- Termination and post-termination restrictions
Before Signing a Franchise Deal
Many countries regulate franchising with disclosure rules, so the franchisor may need to give you specific documents before you sign. Speak to existing franchisees about real costs and support, and have a franchise lawyer review the final agreement.
Questions to ask the franchisor
- What support is given at launch and afterwards?
- How is the territory defined and protected?
- What are the total upfront and ongoing costs?
- What happens if the franchisor sells the brand?
Before signing, ask a lawyer familiar with local law to review the completed franchise agreement; this page offers a drafting starting point, not legal advice.
Franchise Agreement FAQ
What is a franchise royalty?
An ongoing fee the franchisee pays the franchisor, often a percentage of sales.
Can a franchise agreement be transferred?
Usually only with the franchisor’s written consent, as set out in the transfer clause.
Do I need a lawyer for a franchise agreement?
It is strongly advised; franchise deals are long-term and often regulated.
Is the franchise agreement template free for business use?
Yes. No charge, no account: the franchise agreement download is open to everyone.
Related Franchise Agreement Templates and Guides
- Purchase Agreement Template
- Construction Agreement Template
- Partnership Agreement Template
- Software License Agreement Template
Tip: follow Microsoft’s steps for exporting to PDF.
