Master Franchise Contract
Index of the contract
The Master Franchise Contract is a type of document whereby a company (the Franchisor) grants another (the Master Franchisee) the right to exploit and assign franchises on an exclusive basis, creating a franchise units network in a defined territory, usually in the country where the Master Franchisee has its headquarters. This type of contract is very well suited for the international expansion of a franchise business as the Master Franchisee is very knowledgeable of the market allocated to it and has contacts to develop a network of establishments.
The Master Franchise Contract regulates the most important aspects of the relationship between the Franchisor and the Master Franchisee, such as exclusivity, the franchise network, the fees payable, the supply of products, the pricing policy or non-competition agreements. Annexes are also included with additional information on the Intellectual Property Rights (commercial names, marks), description of products and general conditions of sale.
The model contract is designed for Master Franchises, both nationally and internationally, with territorial exclusivity for a region, geographical area or country. It should preferably be used for product franchises, though with some modifications it can also be used for service franchises.The language of this contract is English. It is also available in Spanish.