The Franchise Agreement serves as the foundational document for establishing and managing franchise relationships under Maltese law. This contract type is essential when a business (franchisor) wishes to expand its operations by allowing other parties (franchisees) to operate under its established brand and business system. While Malta doesn't have specific franchise legislation, the agreement must comply with various Maltese laws including the Commercial Code, Civil Code, and Competition Act, as well as relevant EU regulations. The document typically includes comprehensive provisions covering operational standards, intellectual property usage, financial obligations, territory rights, quality control measures, and termination procedures. It's particularly important in Malta's growing commercial sector, where international franchises often seek to establish presence while ensuring compliance with both local and EU requirements.

1. Parties: Identifies and defines the franchisor and franchisee, including their registered addresses and company details

2. Background: Explains the franchisor's business, ownership of the franchise system, and the franchisee's desire to operate under the franchise

3. Definitions: Defines key terms used throughout the agreement

4. Grant of Franchise: Details the rights being granted, territory, and exclusivity terms

5. Term and Renewal: Specifies initial term duration and conditions for renewal

6. Franchise Fees: Outlines initial franchise fee, ongoing royalties, and payment terms

7. Franchisor's Obligations: Lists all obligations including training, support, and operational assistance

8. Franchisee's Obligations: Details operational requirements, standards maintenance, and reporting obligations

9. Intellectual Property: Covers usage of trademarks, patents, copyright, and trade secrets

10. Training and Support: Specifies initial and ongoing training requirements and support services

11. Operations Manual: References the manual and its role in franchise operations

12. Marketing and Advertising: Details marketing requirements, fees, and cooperative advertising

13. Quality Control: Establishes standards and monitoring procedures

14. Records and Reporting: Specifies financial reporting requirements and record-keeping obligations

15. Insurance: Details required insurance coverage

16. Transfer and Assignment: Conditions for transferring the franchise

17. Termination: Grounds and procedures for termination

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

19. Confidentiality: Protection of confidential information

20. Non-Competition: Restrictions during and after the franchise term

21. Governing Law: Specifies Malta law as governing law and jurisdiction

22. Dispute Resolution: Procedures for handling disputes

23. General Provisions: Standard boilerplate clauses