The Master Franchise Agreement is a sophisticated commercial contract used when a franchise business wishes to expand its operations through an intermediary (master franchisee) who will develop and manage a territory. This agreement, governed by Irish law, grants the master franchisee both the right to operate the franchise business and to recruit, train, and manage sub-franchisees within their designated territory. The document incorporates key provisions required under Irish and EU law, including competition regulations, intellectual property protections, and consumer protection measures. It establishes the commercial framework for the relationship, including development obligations, fee structures, operational standards, and support mechanisms, while ensuring compliance with Irish legal requirements and business practices. This type of agreement is particularly suitable for international franchisors entering the Irish market or Irish franchisors expanding domestically or internationally through a master franchise structure.
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1. Parties: Identification of the franchisor and master franchisee
2. Background: Context of the agreement, description of the franchise system and business
3. Definitions and Interpretation: Key terms used throughout the agreement
4. Grant of Rights: Scope of master franchise rights, exclusivity provisions, and territorial rights
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Development Schedule: Minimum performance requirements and development obligations
7. Fees and Payments: Initial fees, ongoing royalties, and payment terms
8. Franchisor's Obligations: Support, training, and assistance to be provided by the franchisor
9. Master Franchisee's Obligations: Operational, reporting, and compliance requirements
10. Sub-Franchising Rights: Rights and procedures for appointing sub-franchisees
11. Intellectual Property: Use and protection of trademarks, know-how, and other IP
12. Confidentiality: Protection of confidential information and trade secrets
13. Non-Competition: Restrictions during and after the agreement term
14. Termination: Grounds and procedures for termination
15. Post-Termination: Obligations and restrictions after agreement ends
16. Indemnification: Mutual indemnification obligations
17. Dispute Resolution: Procedures for handling disputes
18. General Provisions: Standard boilerplate clauses
1. Currency and Exchange Rates: Required for international agreements where multiple currencies are involved
2. Local Adaptation Rights: When the franchise system needs significant local market modifications
3. Import/Export Provisions: When products need to be imported/exported across territories
4. Data Protection: Detailed GDPR compliance section when extensive personal data processing is involved
5. Marketing Fund: When a separate marketing fund is established for the territory
6. Supply Chain Requirements: When specific supplier relationships or product sourcing requirements exist
7. Training Programs: Detailed training requirements when complex operational procedures exist
8. Quality Assurance: Detailed quality control procedures for complex operations or regulated industries
1. Territory Definition: Detailed description and/or maps of the granted territory
2. Development Schedule: Specific timeline and targets for opening sub-franchised units
3. Initial and Ongoing Fees: Detailed fee structure including calculations and examples
4. Operations Manual Table of Contents: Overview of the operations manual contents
5. Trademark Schedule: List of registered and pending trademarks in the territory
6. Initial Training Program: Details of required initial training
7. Form of Sub-Franchise Agreement: Template agreement for use with sub-franchisees
8. Technical Standards: Required equipment, software, and technical specifications
9. Product Schedule: Approved products and services for the franchise system
10. Reporting Requirements: Forms and templates for required periodic reports
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