Franchise Agreement Service
Structure your franchise agreement around your business model, the rights and duties of both sides, the fees and your brand's operating standards.
- FRANZBIZ drafts and structures franchise agreements for business owners preparing to sell franchises, and for brands that want their existing agreement to cover how the business really works
- From the franchise fee, royalty fee, marketing fee, territory, term and renewal, branch standards and trademark use to the terms when the agreement ends
Why a franchise shouldn't use a generic contract or a ready-made template
A franchise agreement isn't just a document that lets someone else use your brand name. It is one of the key tools that defines the relationship between franchisor and franchisee for the whole term.
Every business has its own revenue model, operating system, territory rights, supply chain and standards. An agreement that doesn't fit the business can cause problems later, for example:
Unclear fee collection
The franchise fee, royalty fee and marketing fee have no clear calculation, payment dates or conditions.
Territory disputes
Territory and the right to open more branches aren't properly defined.
Branch standards are hard to enforce
The agreement isn't linked to the SOPs, franchise manual and standards the franchisee must follow.
Intellectual property misused
The scope for using the brand name, trademark, recipes, know-how or brand materials is unclear.
Problems when the business closes
No proper procedure for ending the agreement, transferring the business or handling things after the term ends.
The agreement doesn't fit the real model
As branch numbers grow, terms not set from the start can limit how you manage the network.
A good franchise agreement starts with understanding the business
We don't start from a template; we start from your franchise model
Before drafting, FRANZBIZ looks at the business structure and franchise format so the terms match how the brand will actually manage its franchise network.
We consider the fee structure, the rights and duties of both sides, the operating system, territory, purchasing, brand use, standards control and the growth plan.
What should a franchise agreement cover?
- 01
Right to use the brand
The scope for using the trade name, trademark, logo and the brand's intellectual property.
- 02
Franchise Fee
The initial fee, how it is paid and the related conditions.
- 03
Royalty & Marketing Fee
Ongoing fees, how they are calculated, the payment cycle and each side's duties.
- 04
Territory
The operating area, territory rights and the rules for opening more branches.
- 05
Term and renewal
The length of the agreement, renewal conditions and related fees.
- 06
Operating standards
The franchisee's duty to follow the SOPs, franchise manual and brand standards.
- 07
Supply Chain
Terms for buying ingredients, products and equipment, and approved suppliers.
- 08
Training & Support
The scope of training and support, and the head office's duties.
- 09
Marketing & Brand Guidelines
Rules for marketing, social media and use of brand materials.
- 10
Quality Control & Audit
The right to inspect branches, assess standards and require fixes when they fall short.
- 11
Transfer / Termination
Terms for transferring rights, ending the agreement, breach and termination.
- 12
Post-Termination
What must happen after the agreement ends, such as stopping use of the brand, returning data or property, and other related terms.
How FRANZBIZ prepares your franchise agreement
- 1Franchise Business ReviewStudy the business, the franchise format, the pilot branch and the expansion plan.
- 2Franchise Structure ReviewReview the franchise fee, royalty fee, marketing fee, territory, contract term and rights structure.
- 3Agreement StructureSet the sections and key terms the business model needs.
- 4Draft Franchise AgreementDraft the agreement to match the agreed structure.
- 5Review & RevisionExplain the key terms and revise within the agreed scope.
- 6Final Franchise AgreementDeliver the final agreement as part of the brand's franchise system.
The franchise agreement is only one part of a complete franchise system
Having an agreement alone doesn't mean the business is ready to sell franchises. Before expanding, the brand owner should have a business structure where every part connects.
- 01
Franchise Financial Model & Unit Economics
Know how much the business costs to open, how much it makes and how it pays back.
- 02
Franchise Structure
Set the franchise fee, royalty, marketing fee and territory.
- 03
Franchise Agreement
Set the rights, duties and terms for both sides.
- 04
SOP & Franchise Manual
Turn the brand's standards into a system franchisees can follow.
- 05
Training & Quality Control
Pass the system on and keep the standard after branches open.
- 06
Marketing & Franchise Recruitment
Take the ready system to market and find investors.
Building a franchise from scratch?
FRANZBIZ offers a Franchise Development Program for businesses that want a complete franchise system, from the business model, SOPs and franchise agreement to getting ready to sell franchises.
Who is the franchise agreement service for?
It suits business owners starting to sell franchises who want an agreement that fits their business model, and brands already selling franchises that want to review or update their agreement for today's systems and expansion plans.
It also suits businesses changing their franchise fee, royalty fee, territory, supply chain or the way they manage franchisees, and that need their documents to reflect the new structure.
Why choose FRANZBIZ for your franchise system and agreement
FRANZBIZ treats the franchise agreement as part of the franchise business system, not a document separate from how the business runs.
Our experience with franchise businesses across many industries lets us connect the terms of the agreement with the business's financial model, SOPs, operations, marketing, territory and expansion plan.
- Brands we have developed franchise systems for
- 300
- Industries of experience
- 10
- Years in franchising
- 13
- Recognised work and standards
- Thai Franchise Award 2020
Frequently asked questions about franchise agreements
What is a franchise agreement?
A franchise agreement is the contract between the franchisor and the franchisee that sets out rights, duties, brand use, fees, operating standards and the other terms of the business relationship.
What should a franchise agreement include?
Usually the right to use the brand, fees, royalty fee, marketing fee, territory, term, renewal, operating standards, purchasing, marketing, standards audits, breach, termination and post-termination terms. The details should be designed around each business's model.
Can we use a franchise agreement template from the internet?
A template is useful for learning the usual sections, but it shouldn't be used without considering the real business model, because every brand's franchise fee, territory, supply chain, SOPs, marketing and support system are different.
How long should a franchise agreement last?
No single term suits every business. It should reflect the type of business, the investment, the life of the assets, the payback period and the brand's expansion plan.
What is the difference between a franchise agreement and a franchise manual?
The franchise agreement sets the relationship, rights, duties and terms between the parties. The franchise manual or SOP explains how to operate and the business's standards. They do different jobs but should match.
Once we have an agreement, can we start selling franchises?
Not necessarily. The business should also check that its financial model, operating system, SOPs, training, quality control and franchisee support are ready, so expansion can run systematically.
Need a new or updated franchise agreement?
Whether you are building a new franchise or want to restructure an existing agreement to fit your business better, the FRANZBIZ team can analyse your franchise format and recommend the right scope of work.
- For business owners and brands developing or expanding a franchise system
Franchise agreements and complete franchise system development
FRANZBIZ prepares franchise agreements and develops franchise systems for business owners who want to build and expand systematically, aligning the business structure, franchise fee, royalty fee, marketing fee, territory, SOPs, franchise manual and operating standards.
For businesses without a franchise system yet, FRANZBIZ offers the Franchise Development Program, covering the franchise financial model and unit economics, franchise structure design, SOPs and operations manuals, the franchise agreement, and preparation for franchise marketing and sales.