Franchise Contract Document

A franchise contract document is one which highlights the manner in which a franchise is allotted to a certain individual or groups of individuals. It is a legal document and must contain verified data. Information regarding the company which will allot franchise rights must be provided as well as regarding the individual to which franchise rights will be granted. The franchise contract document must be composed by professionals.

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Sample Franchise Contract Document:

Franchise Contract Document

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The following is a franchise contract document between Selma’s Boutique [henceforth referred to as the parent company] and Mrs. Annabel Rogers of 45 Redwood Avenue [henceforth referred to as the franchisee]. The duration of the franchise contract is two years. The dates of commencement and termination of franchise contract are the 12th of April 2011 and the 12th of April 2013 respectively. After the termination of the franchise contract, it may be renewed or extended as per the discretion of the parent company and contingent on the performance and success of the franchisee. Some points are to be noted:

  • The franchisee will be expected to pay 30 percent of ever sale to the parent company.
  • The franchisee shall receive goods [garments mainly] at the start of every month for the two year period of the franchise contract.
  • She will be required to maintain accurate log books and accounts which will be verified from time to time.
  • Unsold material shall be absorbed into the parent company at the end of every month.
  • The franchisee shall have to sell a minimum amount of stock [as specified overleaf] every month or her franchise contract is liable to be cancelled.

Signature of parent company representative: _______________

Signature of franchisee: _________________________

Posted in Contract Documents