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Dealer Franchise Agreement Template for England and Wales

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Key Requirements PROMPT example:

Dealer Franchise Agreement

"I need a Dealer Franchise Agreement for my luxury watch business expanding into the UK market, with specific provisions for maintaining brand exclusivity and detailed quality control measures for our authorized dealers across London and Manchester."

Document background
The Dealer Franchise Agreement is a crucial document for businesses operating through authorized dealer networks in England and Wales. It provides the legal framework for the relationship between manufacturers or suppliers and their authorized dealers, establishing clear rights, obligations, and operational standards. This agreement type is particularly important in regulated industries and where brand consistency is crucial. It includes specific provisions required by UK competition law, particularly the Vertical Agreements Block Exemption Order 2022, and addresses key aspects such as territory rights, performance standards, and brand protection measures.
Suggested Sections

1. Parties: Identification of franchisor and dealer, including registered addresses and company numbers

2. Background: Context of the agreement, nature of the business, and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Territory: Terms of dealer appointment and defined territorial boundaries

5. Term and Renewal: Duration of agreement and renewal conditions

6. Dealer Obligations: Core responsibilities and performance requirements

7. Franchisor Obligations: Support, training, and supply commitments

8. Products and Pricing: Product range, ordering process, and pricing structure

9. Quality Standards: Required operational and service standards

10. Intellectual Property: Usage rights and restrictions for brands and trademarks

11. Termination: Grounds and process for agreement termination

Optional Sections

1. Marketing and Advertising: Marketing requirements and restrictions for dealer's promotional activities

2. After-Sales Service: Requirements and standards for after-sales service and customer support

3. Non-Compete: Restrictions on competitive activities during and after the agreement term

4. Insurance: Specific insurance requirements and minimum coverage levels

Suggested Schedules

1. Territory Map: Detailed map and description of authorized territory

2. Product List: Complete list of authorized products covered by the agreement

3. Price List: Current pricing structure and terms for all products

4. Performance Targets: Specific sales and performance requirements for the dealer

5. Operating Manual: Detailed operational procedures and standards to be followed

6. Brand Guidelines: Rules and requirements for brand usage and marketing

7. Training Requirements: Required training programs and schedules for dealer staff

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions































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Industries

Competition Act 1998: Primary UK competition law legislation that prohibits anti-competitive agreements and abuse of dominant market position, crucial for franchise territory and pricing provisions

UK Vertical Agreements Block Exemption Order 2022 (VABEO): Post-Brexit regulation providing block exemption for certain vertical agreements, including distribution and franchise agreements that meet specified criteria

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts, ensuring fairness in contractual relationships

Consumer Rights Act 2015: Consolidates consumer protection law, relevant if the franchise involves consumer-facing business

Commercial Agents Regulations 1993: Regulates relationships between principals and commercial agents, may be relevant for certain franchise structures

Sale of Goods Act 1979: Governs contracts for the sale of goods, important for product-based franchises

Trade Marks Act 1994: Protects and regulates the use of trademarks, crucial for franchise brand protection and licensing

UK GDPR and Data Protection Act 2018: Governs the processing and handling of personal data, essential for customer data management in franchises

Employment Rights Act 1996: Important for establishing clear distinction between franchise and employment relationships

Consumer Protection from Unfair Trading Regulations 2008: Protects consumers from unfair practices, relevant for consumer-facing franchises

Money Laundering Regulations 2017: Sets out anti-money laundering requirements, important for financial compliance in franchise operations

Motor Vehicle Block Exemption Regulation: Specific regulation for automotive sector franchises, providing competition law exemptions for vehicle distribution

Financial Services and Markets Act 2000: Regulatory framework for financial services, essential if franchise involves financial products or services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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