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Master Franchise Contract Template for New Zealand

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Key Requirements PROMPT example:

Master Franchise Contract

"I need a Master Franchise Contract for our Australian coffee shop chain expanding into New Zealand, with rights to establish and manage sub-franchises across both North and South islands, planning to commence operations in March 2025."

Document background
The Master Franchise Contract is a sophisticated legal instrument used when a franchisor wishes to expand their business through a master franchisee who will both operate and sub-franchise the business concept within New Zealand or a specified territory. This document, governed by New Zealand law, serves as the foundation for creating a multi-tiered franchise network, incorporating provisions that comply with New Zealand's commercial law framework, including the Fair Trading Act 1986 and Contract and Commercial Law Act 2017. It details the master franchisee's rights to develop the territory, grant sub-franchises, and maintain the franchise system's standards, while also outlining the franchisor's ongoing support obligations and control mechanisms. The agreement is particularly crucial for international franchisors entering the New Zealand market, as it must balance global brand consistency with local market requirements and legal compliance.
Suggested Sections

1. Parties: Identification of the franchisor and master franchisee, including full legal names and registered addresses

2. Background: Context of the agreement, description of the franchise system, and purpose of the master franchise arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules for interpretation

4. Grant of Master Franchise: Scope of rights granted, territory definition, and exclusivity provisions

5. Term and Renewal: Initial term of the agreement and conditions for renewal

6. Master Franchisee Obligations: Core obligations including development schedule, maintenance of standards, and support to sub-franchisees

7. Sub-Franchising Rights and Obligations: Rights and procedures for granting sub-franchises, including approval processes and restrictions

8. Intellectual Property: Usage rights and restrictions regarding trademarks, copyright, and other IP

9. Training and Support: Training obligations of franchisor to master franchisee and master franchisee to sub-franchisees

10. Fees and Financial Obligations: All financial terms including initial fees, ongoing royalties, and revenue sharing from sub-franchises

11. Reporting and Audit Rights: Financial and operational reporting requirements and audit provisions

12. Marketing and Advertising: Marketing obligations, advertising fund contributions, and local marketing requirements

13. Confidentiality: Protection of confidential information and trade secrets

14. Non-Competition and Restraint of Trade: Restrictions during and after the term of the agreement

15. Default and Termination: Events of default, termination rights, and consequences of termination

16. Post-Termination Obligations: Obligations and restrictions following termination

17. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

18. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Development Schedule Obligations: Used when the master franchisee must meet specific development targets for opening sub-franchised units

2. International Operations: Required when the master franchise territory covers multiple countries or involves cross-border operations

3. Supply Chain Requirements: Included when there are specific supplier relationships or product sourcing requirements

4. Technology and Systems: Required when proprietary software or technology systems are crucial to the franchise operation

5. Sub-Franchisor Training Program: Detailed when specific training programs must be established for sub-franchisees

6. Alternative Dispute Resolution: Additional detailed ADR procedures for complex international arrangements

7. Local Adaptation Rights: Used when the master franchisee needs rights to adapt the system for local market conditions

8. Currency and Exchange Provisions: Required for international arrangements involving multiple currencies

Suggested Schedules

1. Territory Definition: Detailed description and/or maps of the master franchise territory

2. Initial Fee and Ongoing Payments: Comprehensive breakdown of all fees, royalties, and payment structures

3. Brand Standards Manual: Operating standards and brand requirements to be maintained

4. Development Schedule: Timeline and targets for sub-franchise development

5. Training Requirements: Detailed training programs and requirements for master franchisee and sub-franchisees

6. Approved Suppliers: List of approved suppliers and supply chain requirements

7. Sub-Franchise Agreement Template: Standard form agreement to be used with sub-franchisees

8. Intellectual Property Register: List of all trademarks, copyrights, and other IP included in the franchise

9. Required Insurance: Details of mandatory insurance coverage

10. Reporting Templates: Standard forms for financial and operational reporting

11. Initial Training Program: Details of initial training provided by franchisor

12. Marketing Guidelines: Standards and requirements for marketing and advertising

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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Relevant Industries

Retail

Food and Beverage

Hospitality

Professional Services

Education and Training

Health and Fitness

Automotive Services

Real Estate

Home Services

Beauty and Personal Care

Technology Services

Business Services

Child Care Services

Cleaning Services

Relevant Teams

Legal

Operations

Business Development

Finance

Compliance

Brand Management

Training and Development

Commercial

Strategy

International Development

Risk Management

Marketing

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Franchise Development Manager

Legal Counsel

Commercial Director

Operations Director

Business Development Manager

Franchise Operations Manager

Territory Development Manager

Compliance Officer

Brand Manager

Training Manager

Financial Controller

Managing Director

Head of Franchising

Regional Director

General Counsel

Franchise Recruitment Manager

Industries










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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