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Sales and commercial

Franchise agreement template

Franchise agreement: A franchise agreement licenses a business model, brand and know-how to a franchisee who runs its own outlet in return for fees and royalties.

Last reviewed 6 November 2026 · 6 clauses · General guidance, not legal advice

Upload yours for a review and e-signature, or save it as a team template.

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When to use a franchise agreement

  • Expanding a proven business through franchising
  • Master franchises for a country
  • Licensing a restaurant or retail concept

Franchise agreement template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Grant

    The Franchisor grants the Franchisee the right to operate one [business] under the System and Marks at [location] for [10] years.

  2. Fees

    The Franchisee pays an initial fee of [amount] and a monthly royalty of [x]% of gross sales, plus [y]% to the marketing fund.

  3. Operations manual

    The Franchisee will operate in line with the Franchisor’s operations manual, as updated.

  4. Training and support

    The Franchisor will provide initial training and ongoing support.

  5. Territory

    The Franchisor will not open another outlet within [area] during the term.

  6. Restrictions after termination

    For [12] months after termination, the Franchisee will not run a competing business within [area].

What to check before you sign

  • Do franchise disclosure or registration laws apply where you operate?
  • Are fees and the marketing fund transparent?
  • Is the territory protection meaningful?

Signing formalities: Franchising is regulated in several countries, with mandatory disclosure, waiting periods or registration before signing.

How to send a franchise agreement for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Franchise agreement template: frequently asked questions

Do I need to register a franchise?

Some countries and US states require pre-sale disclosure documents or registration. Check before offering franchises.

How are franchise royalties calculated?

Usually as a percentage of gross sales, sometimes with a minimum monthly fee.

Is an electronically signed franchise agreement legally binding?

Often, but not always. Franchising is regulated in several countries, with mandatory disclosure, waiting periods or registration before signing. econtracts.ai shows the rules for the contract’s governing law before you send it.

Can I get a franchise agreement I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

Related contract templates

Licensing agreement templateLicensing agreementDistribution agreement templateDistribution agreementNon-compete agreement templateNon-compete agreement

This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.