Below are some clauses typically found in these documents:
Provincial exclusivity
Territorial exclusivity is a contract clause that defines the exclusive territory in which an international master’s franchise will operate. This ensures brand consistency and quality for customers and reduces competition from other organizations owned by the same franchise within this area.
Granting Intellectual Property Rights
A business with a master franchise agreement will license its brands, trademarks, or other intellectual property to be used by the franchisor.
Franchise Fees
Franchise fees are the associated costs that a master franchise pays for the licensing rights of the franchise.
Assistance and training
The franchisor will provide initial and ongoing assistance and training for the master franchise.
Post-contractual non-competition
Post-contractual non-competition can be described as a written agreement that specifies the temporal and geographic scope of restrictions on a master franchise owner who is leaving to join or start up another business.
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