franchise-agreement

name	franchise-agreement
title	Franchise Agreement
description	Drafts FTC-compliant U.S. Franchise Agreements covering rights grants, territory, fees, operational standards, IP protection, transfer restrictions, default/termination, and post-term obligations. Flags state relationship and registration law issues. Use when drafting initial or renewal franchise agreements, negotiating franchise terms, or expanding a franchise system.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/franchise-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	commercial
language	en

Franchise Agreement

Drafts a litigation-hardened, FTC-compliant U.S. Franchise Agreement that protects franchisor IP and system standards while defining franchisee rights and obligations.

Prerequisites

Collect before drafting:

• Parties — legal names, state of organization, principal place of business (both sides)
• Brand/IP — trademarks, service marks, trade names, logos, proprietary system description
• Territory — exclusive/non-exclusive/protected; defined by address, radius, zip codes, or other demarcation
• Fees — initial fee, royalty rate/basis, ad fund %, technology fees, transfer fee, renewal fee
• Training — duration, location, attendee requirements, cost allocation
• Site/format — fixed location or mobile; site selection responsibility; lease approval requirements
• Carve-outs — any deviations from franchisor's standard form

Quick Start

1. Confirm FDD exists and is current — agreement must not contradict FDD disclosures
2. Draft agreement sections per the structure below using collected prerequisites
3. Build fee schedule with precise Gross Sales definition
4. Draft default/termination matrix with cure periods
5. Add post-term non-compete tailored to jurisdiction
6. Attach exhibits (territory map, personal guaranty, operations manual acknowledgment)
7. Run regulatory checks (FTC Rule, state relationship laws, registration states)

Agreement Structure

Section	Key Points
Parties & Recitals	Franchisor IP ownership; franchisee license desire
Grant of Rights	Marks licensed; format; territory type and boundaries
Term & Renewal	Initial term; renewal conditions (good standing, upgrade, current-form FA, fee); lapse consequences
Financial Obligations	Per fee schedule below
Franchisor Obligations	Training; ongoing support; Operations Manual; site/pre-opening assistance
Franchisee Obligations	System conformity; hours/staffing/service standards; owner involvement; insurance; reporting
Site Development	Approval process; deadlines (site selection, lease, construction, opening); failure-to-open remedy