FREE UK Franchise Agreement

This free Franchise Agreement can be used to define the relationship between a Franchisee and a Franchisor in the United Kingdom. It contains many of the terms necessary in these types of contracts.

Disclaimer:This was not drafted by an attorney & should not be used as a legal document.


This Franchise Agreement (“Agreement”) entered into at [Place] on the [Date] by and between:

[Company], having its registered office at [Address] (hereinafter referred to as Franchisor), which expression shall mean and include its successors and assigns of the First Part;


[Name of Franchisee] of [Address of Franchisee] (hereinafter referred to as the ‘Franchisee’) which expression shall mean and include its successors and permitted assigns of the Other Part:


(A) Franchisor wishes to expand or franchised network and are therefore willing to grant Franchisee the franchise right for the business in the territory,

(B) Franchisee desires the right during the continuance of this agreement to carry on the business in the territory.


2. Definitions:

Franchisor Business shall mean and include the business carried on by the Franchisor.

Franchisor Services shall mean and include the services provided by the Franchisor and the right granted by the Franchisor to the Franchisee under this agreement in terms of this Agreement.

3. The Franchisor Business:

4.1 The Franchisor have developed a [Description] which is developed by the Franchisor solely and a proprietary ownership held by the Franchisor.

4.2 The Franchisor has a priority right to use the term “[Brand]”, which is understood and agreed by the Franchisee.

4. Rights granted to Franchisee:

5.1 The Franchisor hereby grants to Franchisee a license to operate the Services of Franchisor within the Territory at and only the Premise as agreed between the Franchisor and Franchisee.

5.2 Franchisee shall not have the right to novate, assign or delegate rights or obligation under this agreement.

5. Term and Renewal:

6.1 Except as otherwise provided, this franchise shall be for a term of twenty-five (25) years from the date of this Agreement (the Term) unless sooner terminated pursuant to terms herein.

6.1.1 Franchisee shall give notice of its intent to renew to Franchisor in writing at least one hundred eighty (180) days prior to the expiration of the then current term.

6. Franchisor’s initial obligation:

7.1 The Franchisor shall provide Franchisee with:

7.1.1 the shop fitting including but not limited to all fixtures, fittings and furniture;

7.1.2 the start up marketing information to be distributed by the Franchisee to their customers;

7. Franchisee as Independent Contractor:

8.1 Franchisee is an independent contractor and shall not be deemed an agent, partner, joint venture or employee of Franchisor. Franchisee shall exhibit at the Franchised Business, in such places and in such forms as may be designated by Franchisor a notification that Franchisee is the owner of the Franchise.

8. Equipment and materials:

9.1 Franchisee must ensure that the products and any of the equipment and Materials or other items that are purchased by Franchisee from Franchisor are purchased on standard terms and conditions of business. All faulty products, equipment, materials or items will be dealt with accordingly.

9. Confidentiality and undertaking:

11.1 Franchisee must not divulge or communicate to any person (other than to those whose province it is to know or upon instructions or approval of Franchisor), or use for Franchisee’s own purpose other than Franchise Business, any of trade secret or other confidential information Franchisee may have received or obtained during the Term of this agreement or any renewal of it from Franchisor.

15. Franchisee’s financial obligation

15.1 Franchisee must pay to Franchisor from time to time as required the following sums without deduction or set-off:

15.1.1 Immediately upon executing this agreement; in consideration of the right to operate and commence the rights granted under this Agreement, Franchisee agrees to pay to the Franchisor an initial Franchise Fee being £ [Amount] (including VAT as applicable). The initial Franchise Fee shall be paid in full by chcque or bank draft. The Initial Franchisee fee shall be non-refundable in whole or in part by Franchisor for any reason whatsoever.

15.1.2 The Service Fee being an amount of £ [Amout] per week (including VAT), payable at the 28th of every month from the start of that particular month;

16. Termination:

16.1 The Franchisor may terminate this agreement forthwith by notice in writing to Franchisee if Franchisee has failed to remedy any remediable breach within a period of fifteen [15] days of the receipt of a notice in writing from us requiring Franchisee to do so.

20 Arbitration:

The Parties hereby agree that all disputes and differences between the Parties which may arise, either during the continuation of this Franchise Agreement or after its termination or on any account touching this Agreement or in the construction or the application of any clause of this Agreement or in respect of any matter of omission and commission of with regard to rights, duties, obligations, dues and liabilities of any of the Parties, the same shall be settled by reference to arbitration as per provisions of the Arbitration laws applicable in the State of [State]. This Arbitration clause shall survive the termination of this Agreement. During the continuation of any arbitration proceedings, the business of the Franchised Outlets will not be stopped and the obligations of both the Parties under this Agreement shall continue to be in force unless this Agreement is determined or terminated by either Party.

21 Choice of law and jurisdiction

This Agreement shall take effect and be construed in accordance with the laws of United Kingdom.

IN WITNESS WHEREOF the parties above named have executed these presents in the presence of the Witnesses attesting hereunder on the dates and place mentioned herein below:

For Franchisor For Franchisee

___________________ __________________________




1. (…………….................…)

2. (............................………)


The details (list) of the product to be supplied by the Franchisor to the Franchisee:




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