Real Estate Franchise Agreement Template for Canada

The Real Estate Franchise Agreement serves as the foundational document for establishing and operating a franchised real estate brokerage within Canada. This agreement is essential when a real estate brand (franchisor) grants rights to an independent operator (franchisee) to use its trademarks, systems, and business methods in operating a real estate brokerage. The document must comply with both federal and provincial regulations, including franchise disclosure requirements and real estate licensing laws. It covers crucial aspects such as territory rights, royalty structures, operational standards, training requirements, and brand compliance. The agreement is particularly important in the Canadian context where franchise operations are regulated at both federal and provincial levels, and real estate operations must adhere to specific provincial licensing and regulatory requirements.

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

2. Background: Context of the agreement, description of the franchise system, and general purpose

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Grant of Franchise: Specific rights being granted, including territory definition and any exclusivity provisions

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

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

7. Franchisor's Obligations: Training, support, operations manual, ongoing assistance, and other franchisor commitments

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

9. Real Estate Operations: Specific requirements related to real estate brokerage operations and compliance

10. Training and Support: Initial and ongoing training requirements, support systems, and resources

11. Intellectual Property: Use of trademarks, trade names, and system intellectual property

12. Advertising and Marketing: Marketing requirements, contributions, and approved advertising practices

13. Records and Reporting: Required business records, financial reporting, and audit rights

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

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

16. Post-Termination Obligations: Obligations after termination including non-compete and confidentiality

17. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

18. General Provisions: Standard legal provisions including notices, governing law, and entire agreement