Company Franchise Agreement Template for Austria

The Company Franchise Agreement is a crucial document used when a business (franchisor) grants another entity (franchisee) the right to operate under its business system and brand in Austria. This agreement is essential for businesses expanding through franchising and must comply with Austrian commercial law (Unternehmensgesetzbuch), EU regulations, and relevant competition laws. The document comprehensively covers all aspects of the franchise relationship, including intellectual property rights, operational standards, financial obligations, territory rights, and quality control measures. It's particularly important to note that while Austria doesn't have specific franchise laws, the agreement must align with EU competition regulations and Austrian commercial code requirements. The document serves as the foundational contract governing the entire franchise relationship and typically includes detailed schedules and operational manuals as integral components.

1. Parties: Identification of the franchisor and franchisee, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, description of the franchise system, and business concept

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Grant of Franchise: Specific rights being granted, including territory, exclusivity, and scope of the franchise

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

6. Franchise Fees and Payments: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms

7. Franchisor Obligations: Support, training, and assistance to be provided by the franchisor

8. Franchisee Obligations: Operating standards, compliance requirements, and performance obligations

9. Intellectual Property Rights: Usage of trademarks, patents, copyright, and other IP

10. Operations Manual and System: Reference to and compliance with the operations manual and franchise system

11. Training and Support: Initial and ongoing training requirements and support services

12. Marketing and Advertising: Marketing obligations, advertising requirements, and brand standards

13. Quality Control: Quality standards, inspection rights, and compliance requirements

14. Records and Reporting: Financial reporting requirements, record-keeping obligations, and audit rights

15. Non-Competition and Confidentiality: Non-compete provisions and protection of confidential information

16. Transfer and Assignment: Conditions for transfer of the franchise and change of control

17. Termination: Grounds for termination, procedures, and consequences

18. Post-Termination Obligations: Obligations and restrictions after agreement termination

19. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

20. General Provisions: Standard contractual provisions including notices, amendments, and severability