Franchise Agreement
(Full Service Restaurant)

Summary

This franchise agreement template is structured for a full service restaurant franchise. This template includes practical guidance, drafting notes, and alternate clauses. In the United States, sales of franchises are regulated by the Federal Trade Commission (FTC) and various state statutes and regulations. Pursuant to the FTC’s Amended Franchise Rule and most of the state registration laws, the three key elements to a franchise are (1) the franchisor and franchisee being mutually associated with a common trademark, logo, or trade name; (2) the franchisor must promise to provide the franchisee with significant assistance and/or the franchisor must impose significant controls over the franchisee; and (3) the franchisee is required to pay a franchise fee. Note that this template uses the terms “license agreement,” “licensor,” and “licensee” instead of franchise agreement, franchisor, and franchisee. Note that this template uses the terms “license agreement”, “licensor”, and “licensee” instead of franchise agreement, franchisor, and franchisee. For more information, see Franchising: An Updated Look at the Basics, State Websites for Franchises and Business Opportunities, and Franchisees and Prospective Franchisees Considerations. For other franchising agreements, see Franchise Agreement (Unit Franchise), Franchise Agreement (Fast Casual / Fast Food Restaurant), and Area Development Agreement.