Franchise License Agreement Template for Austria

The Franchise License Agreement is a crucial document used when establishing a franchise business relationship in Austria. It serves as the foundational contract between a franchisor who wishes to expand their business through franchising and a franchisee who wants to operate under the franchisor's established business system. The agreement must comply with Austrian commercial law (UGB), civil law (ABGB), and EU regulations, particularly regarding competition law and territorial restrictions. This document outlines the complete franchise relationship, including initial and ongoing fees, operational requirements, quality standards, territory rights, intellectual property usage, and termination conditions. It's essential for protecting both parties' interests while ensuring compliance with Austrian and EU legal frameworks, including data protection regulations (GDPR) and trade secrets protection.

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

2. Background: Description of the franchise system, business concept, and purpose of the agreement

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

4. Grant of Franchise: Scope of franchise rights, territory, and exclusivity provisions

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

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

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

8. Franchisee Obligations: Operational requirements, compliance with system standards, and reporting obligations

9. Intellectual Property Rights: Use of trademarks, trade secrets, and other IP assets

10. Quality Control: Standards maintenance, inspection rights, and compliance requirements

11. Marketing and Advertising: Marketing obligations, advertising fund, and promotional requirements

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition: Competition restrictions during and after the agreement term

14. Transfer and Assignment: Rights and procedures for transferring the franchise

15. Termination: Grounds for termination and procedures

16. Post-Termination Obligations: Obligations and restrictions after agreement end

17. Dispute Resolution: Procedures for handling disputes, including jurisdiction and applicable law

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