Restaurant Franchise agreement


A Restaurant franchise agreement is an agreement between a franchisor that has a restaurant business and a franchise that enters into a contractual relationship with the franchisor for opening a restaurant under the same brand name. This type of agreement mentions all the terms and conditions which are agreed between the franchisor and the franchisee organization.

Sample Restaurant Franchise Agreement

This Restaurant Franchise Agreement is entered between

Spice Cottage Restaurant

Stanford Street, Alabama, USA

AND

Picasso Restaurant

James Street, Alabama, USA

DATED

OCTOBER, 20, 2010

DURATION OF AGREEMENT

The agreement will start from 25/10/2010 and will hold valid till 25/10/2015 which is a period of 5 years.

PAYMENT TERMS

–          The total franchisee fees agreed by both the parties is $120,000

–          40% of the agreement amount should be paid by the franchisee to the franchisor at the time of signing the agreement.

–          The remaining 20% should be paid after the period of 6 months.

–          The final 40% should be paid at the end of the 1st year.

TERMS & CONDITIONS

  • The agreement holds valid till the period of 5 years. The terms of the agreement may change in case of renewal. 
  • Both the parties can break the agreement by giving a prior notice of 1 month.

SIGNATURE

FOR Spice Cottage Restaurant

Jack Hobbs

FOR Picasso Restaurant

Shirley Winston

Category: Franchise Agreements

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