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Sub Franchise Agreement
"I need a Sub Franchise Agreement for my national fitness center chain, allowing my master franchisee in Queensland to grant sub-franchises, with specific requirements for equipment standards and trainer certifications, planned to commence from March 2025."
1. Parties: Identifies the master franchisor, master franchisee (sub-franchisor), and sub-franchisee
2. Background: Explains the franchise system, master franchise arrangement, and context for the sub-franchise agreement
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles
4. Grant of Sub-Franchise: Details the rights granted to the sub-franchisee and territory allocation
5. Term and Renewal: Specifies initial term, renewal conditions, and processes
6. Fees and Payments: Outlines all fees, royalties, and payment terms
7. Obligations of the Sub-Franchisee: Lists all operational, financial, and compliance obligations
8. Training and Support: Details initial and ongoing training requirements and support services
9. Intellectual Property: Covers usage rights and restrictions for trademarks, systems, and materials
10. Operations Manual: References the manual and compliance requirements
11. Marketing and Advertising: Specifies marketing obligations, fees, and approval processes
12. Records and Reporting: Details required business records, reports, and audit rights
13. Insurance: Specifies required insurance coverage and limits
14. Transfer Provisions: Outlines conditions and processes for transfer of the business
15. Termination: Details grounds and processes for termination
16. Post-Termination Obligations: Specifies obligations after agreement ends
17. Restraint of Trade: Non-compete and confidentiality provisions
18. Dispute Resolution: Processes for handling disputes as per Code requirements
19. Warranties and Representations: States warranties given by all parties
20. General Provisions: Includes standard boilerplate clauses
1. Premises: Required if the franchise operates from specific premises - includes lease terms and requirements
2. Equipment and Fitout: Required if specific equipment or store fitout is necessary
3. Supply Arrangements: Include if there are mandatory supplier relationships or product requirements
4. Online Operations: Required if the franchise includes online business components
5. Multiple Unit Rights: Include if sub-franchisee has rights to operate multiple units
6. Development Schedule: Required if the sub-franchisee must open multiple units over time
7. Employee Requirements: Include if there are specific staffing requirements or restrictions
8. Local Area Marketing: Required if specific local marketing obligations exist
9. Master Franchisor Direct Rights: Include specific provisions for master franchisor to act directly with sub-franchisee
1. Schedule 1 - Business Details: Key business information, territory definition, commencement date
2. Schedule 2 - Fees and Payments: Detailed fee structure, calculation methods, payment terms
3. Schedule 3 - Intellectual Property: List of trademarks, copyrights, and other IP rights
4. Schedule 4 - Initial Training Program: Training requirements, duration, and content
5. Schedule 5 - Equipment and Inventory Requirements: Required equipment, specifications, approved suppliers
6. Schedule 6 - Key Performance Indicators: Performance standards and metrics
7. Schedule 7 - Approved Products and Services: List of authorized products/services and specifications
8. Schedule 8 - Reporting Requirements: Forms, frequency, and content of required reports
9. Appendix A - Guarantee and Indemnity: Personal guarantees from sub-franchisee principals
10. Appendix B - Deed of Restraint: Detailed non-compete provisions
11. Appendix C - Direct Debit Authority: Banking and payment authorization forms
Authors
Retail
Food and Beverage
Professional Services
Healthcare
Education and Training
Automotive
Cleaning Services
Real Estate
Personal Services
Home Services
Fitness and Recreation
Technology Services
Business Services
Hospitality
Legal
Operations
Finance
Business Development
Compliance
Training and Development
Property Management
Brand Management
Commercial
Risk Management
Chief Executive Officer
Chief Legal Officer
Franchise Development Manager
Legal Counsel
Operations Director
Franchise Operations Manager
Business Development Manager
Compliance Officer
Territory Manager
Commercial Director
Chief Financial Officer
Training Manager
Property Manager
Brand Manager
Contract Administrator
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