This agreement is between a restaurant franchise and a third party interested in
becoming a franchisee. This agreement can be fully customized to ensure that the
understandings of the parties are properly set forth. Customizable clauses include the
name of the franchise, the grant of franchise license, the terms of franchise, the location
of the franchised business, license fees, and termination procedure. This agreement
can be used by small businesses or other entities that want to grant a license, or obtain
a license, to operate a franchised business.
RESTAURANT FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT (the “Agreement”) is made this ____ day of
___________, 2___, (the “Effective Date”) by and between ___________________, located at
_____________________________ (the “Franchisor”) and _____________________, located at
____________________ (the “Franchisee”), hereinafter collectively referred to as (the
WHEREAS the Franchisor is the owner and operator of prepared food franchises known
to the public as ____________________ (“Franchised Business”);
AND WHEREAS the Franchisor’s Business entails certain systems, designs, menus,
food, store layouts and equipment which are unique to the Franchisor’s Business;
AND WHEREAS the Franchisor is the owner and has all of the right, title and interest in
and to the Franchisor’s trade names, service names, trademarks, and service marks used in
association with the Franchised Business which is known as _____________________ (the
“Intellectual Property”) and which Intellectual Property is registered in the United States Patent
and Trademark Office under registration numbers [insert registration numbers for each registered
AND WHEREAS the Franchisee desires to obtain a license from the Franchisor to own
and operate a Franchised Business, including the right and license to use the Intellectual Property
pursuant to the terms, conditions and provisions contained herein.
NOW THEREFORE in consideration of and with the mutual covenants set forth herein
the Franchiser and the Franchisee acknowledge and agree as follows:
I. GRANT OF FRANCHISE LICENSE
1.01 The Franchisor hereby grants to the Franchisee a non-exclusive license to own and
operate a Franchised Business of the Franchisor including the granting of a license to the
Franchisee to use the Intellectual Property associated with the Business for the sole purpose of
the Franchisee operating a Franchised Business.
1.02 The Franchisee shall open the Franchised Business in the City of ________________,
which shall be located at the address known as [include the full street address]. The Franchised
Business of the Franchisee shall bear the store number __________.
1.03 The Franchisor hereby acknowledges and agrees that while this Agreement is in full force
and effect, the Franchisor shall not at any time; grant a similar license to any other party to
operate a Franchised Business within a _________ (___) mile radius of the Franchised Business
of the Franchisee.
1.04 The Franchisee agrees that it shall at all times, only use the Intellectual Property of the
Franchisor associated with the Franchised Business to market and promote its Franchised
Business and acknowledges that all Intellectual Property is and shall remain the sole property of
the Franchisor. The Franchisee further agrees that it shall at all times use, including but not
limited to, all designs, menus, store layouts, recipes, advertising, ingredients and prepared foods
as dictated and used by the Franchisor.
II. TERM OF FRANCHISE
2.01 The Term of this Agreement shall be for an initial period of _______ (___) years (the
“Initial Term”) from the Effective Date unless this Agreement is terminated earlier in accordance
with the termination provisions contained herein.
2.02 Upon the expiration of the Initial Term, the Franchisee shall have the option to renew this
Agreement for an additional term(s) of ________ (____) years each, (the “Additional Terms”)
upon ninety (90) days written notice to Franchisor. Franchisor’s written consent shall not be
unreasonably withheld. In the event this Agreement is renewed, all of the terms, conditions and
provisions contained herein shall apply and shall remain in full force and effect.
III. LOCATION OF FRANCHISED BUSINESS
3.01 The location of the Franchised Business shall be at ______________________ (the
3.02 The Franchisee agrees that it shall from time to time, as required by the Franchisor, make
any renovations, upgrades and/or alterations to the Location as may be deemed necessary to
maintain the integrity of the Franchised Business.
3.03 The Franchisee acknowledges and agrees that the Franchisor shall have the right to enter
and inspect the location from time to time, by providing at least _______ (___) hours advance
notice to the Franchisee, to ensure that the location and the Franchised Business is being
conducted by the Franchisee in accordance with the specifications of the Franchisor.
IV. LICENSE FEES
4.01 The Franchisee shall pay to the Franchisor a Franchise Licensing Fee of
_______________ ($________) Dollars (the “Franchise Licensing Fee”) for the Franchised