The Franchise Sale Agreement is a crucial document used when establishing a new franchise relationship under English and Welsh law. It serves as the primary contract between a franchisor selling rights to their business model and a franchisee purchasing those rights. The agreement covers essential aspects including brand usage, operational requirements, territory rights, fee structures, and support services. It must comply with UK competition law, intellectual property legislation, and industry regulations while protecting both parties' interests. This document is particularly important as it forms the foundation of the ongoing franchise relationship and sets clear expectations for both parties.
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1. Parties: Details of the franchisor and franchisee, including registered addresses and company numbers
2. Background: Context of the franchise sale, including brief description of the business and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Franchise', 'Territory', 'Know-how', 'Intellectual Property Rights'
4. Grant of Franchise: Terms of the franchise grant, including territory rights and exclusivity provisions
5. Franchise Fees: Initial fees, ongoing royalties, and payment terms
6. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, patents, and other IP
7. Obligations of the Franchisor: Training, support, and ongoing assistance commitments
8. Obligations of the Franchisee: Operational standards, compliance requirements, and performance targets
9. Term and Termination: Duration of agreement and circumstances for termination
10. Post-Termination Obligations: Requirements after agreement ends, including non-compete provisions
1. Property Provisions: Required if premises are part of the franchise package - use when the franchise includes specific premises or property requirements
2. Equipment Supply: Terms for supply and maintenance of equipment - use when specific equipment is required for franchise operations
3. Staff Transfer: TUPE provisions and employment terms - use when existing staff will transfer to the franchisee
4. International Operations: Cross-border operational requirements - use for franchises operating in multiple jurisdictions
1. Operations Manual: Detailed operational procedures and standards
2. Territory Map: Detailed description or map of the franchise territory
3. Initial Fee Structure: Breakdown of all initial fees and payment terms
4. Intellectual Property Schedule: List of all relevant trademarks, patents, and other IP
5. Training Program: Details of initial and ongoing training requirements
6. Equipment Specifications: Required equipment and approved suppliers
7. Performance Targets: Specific KPIs and minimum performance requirements
8. Form of Guarantee: Standard form of personal guarantee if required
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