Going globally is one of the biggest milestones a company can achieve since they are able to tap into a more diverse and bigger market thus an increase in revenue. While there can be challenges once local companies find themselves allied with their international counterparts, the important thing to consider is to assess, review and evaluate if such alliance is feasible in terms of costs and profitability, not to mention cultural differences can play a part. But once local companies are able to come to terms and decide to proceed with an international franchise then they would need to produce an international franchise agreement to lay out the terms of the deal. To learn more about this, let us discuss it further below. And if you need to prepare a franchise agreement, check out our free international franchise agreement samples that are available for download on this page.

10+ International Franchise Agreement Samples

1. International Franchise Agreement Template

international franchise agreement template

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2. International Franchise Agreement

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3. Sample International Franchise Agreement

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4. Standard International Franchise Agreement

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5. International Franchise Contract Agreement

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6. International Franchise Development Agreement

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7. International Franchise Agent Agreement

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8. Basic International Franchise Agent Agreement

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9. International Company Franchise Agreement

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10. Addendum to International Franchise Agreement

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11. International Distribution Franchise Agreement

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What Is an International Franchise Agreement?

Franchises are all around us, and they are most prominent in the food industry with the likes of McDonalds, Pizza Hut, Dunkin Donuts, and many others. Of course, hotels like the Hilton or Marriott are franchises as well. When you think about it all those mentioned are global brands, and if you find yourself in Europe or in Asia, it is impossible not to see these establishments. For local companies, acquiring franchises from international establish can be very appealing especially if these are well-known companies. Once the decision is on the table, the next step to the process is to secure an international franchise agreement, a legal document in which the franchisor grants the franchisee (both from different countries) exclusive rights to distribute its product or services in establishments that are uniformly equipped and furnished. Included in the agreement is the consent to use intellectual property rights and providing a handbook or manual, technical and commercial support for proper distribution.

How To Create an International Franchise Agreement?

A general franchise agreement can be used as a model to create this particular type of agreement. Which is designed for product franchises such as cosmetics, food, fashion, etc. where the franchisee is given the right to distribute products manufactured or supplied by the franchisor under their trademark. Even for service franchises (real estate, catering, financial services, etc.) where the franchisee is granted the right to provide services developed by the franchisor, under the franchisor’s trademark with commercial assistance. That being said, this type of agreement will contain some modifications to fit the terms. In creating an international franchise agreement, there are several important elements that must be included in the document, let us break this down into two components in regards to the franchisee and franchisor and its general elements.

I. Both Parties

The names/company names including the addresses must be included in the document.

II. Franchisor

  • the franchisor must be able to provide an operational manual and training support system to the franchisee
  • marketing and promotional strategies must be shared by the franchisor
  • the right to use intellectual property rights such as trademarks, ensuring these are licensed to the franchisee
  • provisions in regards to the assistance in managing the franchise and distribution

III. Franchisee

  • the rights and obligations of the franchisor must be listed in the contract
  • payment such as franchise fees and ongoing fees for the right to use the assets
  • training courses provided by the franchisor must be attended
  • strict compliance with the franchisor’s commercial standards

IV. Termination and Confidentiality Clause

Like most contracts and agreements, it is important to set the terms in case the franchise needs to be terminated or canceled due to unforeseen or a breach. Also, trade secrets and other important proprietary data and information must be protected at all-cause, hence a confidentiality clause should also apply to both parties.

V. Signatures

Lastly, both parties must sign the agreement to close the deal.

FAQs

What Is the Advantage of International Franchises?

It allows international companies or brands to tap into the local market thus expanding and reaching out to new customers and additional profits.

Why are Franchise Agreements Important?

When you enter a franchise deal, a franchise agreement is the most critical document to your franchise investment. Since this document will point out the terms and conditions of the franchise.

What Is a Master Franchise?

A master franchise is a type of franchising that operates as a channel between potential franchisees in a certain territory and the master franchisor.

There are great opportunities for businesses to engage in international franchising, so to ensure a strong and firm working relationship with your international business partner make sure to have an international franchise agreement on hand. Check out our free samples to make it easier for you to prepare.

 

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