Sub-Franchise Agreement: Empowering Growth through Authorized Delegation
The Sub-Franchise Agreement template empowers franchisors and sub-franchisors to structure a clear, legally sound relationship with sub-franchisees. It defines rights, obligations, territory, fees, intellectual property usage, and more—ensuring that brand standards and business integrity are maintained throughout the chain.
Why You Need a Sub-Franchise Agreement
- Clarity of Roles & Authority — Precisely delineates what rights the sub-franchisor can grant, and what the sub-franchisee may or may not do.
- Fee & Royalty Structure — Includes clauses for initial fees, ongoing royalties, marketing contributions, and related financials.
- Standards & Compliance — Enforces consistency in operations, branding, quality, and legal compliance.
- Protection of Intellectual Property & Confidentiality — Safeguards trademarks, trade secrets, manuals, and proprietary methods.
- Termination & Exit Mechanisms — Provides clear rules for termination, non-performance, breach events, and post-termination obligations.
- Dispute Resolution & Governing Law — Establishes a framework to resolve disagreements and designates applicable legal jurisdiction.
What’s Included in the Download
- Fully editable Microsoft Word (.docx) version of the Sub-Franchise Agreement
- A cover page and title page
- All major clauses: grant of franchise rights, term, payments, obligations, IP, termination, confidentiality, dispute resolution, and more
- Guidance notes and placeholder text (in brackets) so you can fill in names, dates, amounts, and jurisdictional specifics
- Optional clauses and flexible sections you can adapt or remove depending on your local legal requirements
How to Use This Template
- Download the file (below).
- Customize all bracketed placeholders (e.g., [Franchisor Name], [Territory], [Royalty Rate], [Governing Law]) to match your business structure.
- Add or remove clauses as necessary—e.g,. more detailed audit rights, non-compete constraints, or local regulatory compliance sections.
- Seek legal review in your jurisdiction before final use, to ensure enforceability and compliance with local laws.
- Send to the sub-franchisor / sub-franchisee for review, negotiation, signature, and proper recordkeeping.
Note: This template is provided for general guidance and is not a substitute for professional legal advice. Always consult an attorney in your jurisdiction before entering into binding agreements.
