| 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
- Confirm FDD exists and is current — agreement must not contradict FDD disclosures
- Draft agreement sections per the structure below using collected prerequisites
- Build fee schedule with precise Gross Sales definition
- Draft default/termination matrix with cure periods
- Add post-term non-compete tailored to jurisdiction
- Attach exhibits (territory map, personal guaranty, operations manual acknowledgment)
- 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 |
