Master Franchise Agreement
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MASTER FRANCHISE AGREEMENT
FOR CANADA
THIS AGREEMENT is made and entered into on [franchise agreement date] by and between [Franchisor]
(“[Franchisor]”), a corporation organized under the laws of the Province of [province], and [MASTER
FRANCHISEE], a company incorporated under the laws of the Province of [province] (“Master
Franchisee”).
WHEREAS:
A.
[Franchisor], as the result of the expenditure of time, skill, effort, and money, has developed and
owns a unique and distinctive system relating to the establishment and operation of [description
of franchise business], [using the unique operating system and tools developed and maintained
by [Franchisor] to [description] and using the proprietary software program designed by
[Franchisor] and made available to its franchisees to assist in the management of the franchise
business (“System”);
B.
The distinguishing characteristics of the System include without limitation a distinctive design
and layout, and training management, and promotional assistance, in connection with the
establishment and ongoing operation of [franchise business] Centres, all of which may be
changed, improved, and further developed by [Franchisor] from time to time;
C.
[Franchisor] identifies the System, in the Province(s) of [provinces] (“Territory”), by means of
certain trade names, trademarks, logos, and indicia of origin, including the mark [TRADE
MARK] and such other trade names and trademarks as are now designated or may hereafter by
designated by [Franchisor] in writing, for use in connection with the System (“Proprietary
Marks”);
D.
Master Franchisee wishes to obtain the right and license to use the Proprietary Marks and the
exclusive right to grant franchises to other persons (“Franchisees”) to establish and operate
[franchise business] Centres using the Proprietary Marks and System (“[Franchisor] Centres) in
the Territory; and wishes to receive the training and other assistance provided by [Franchisor] in
connection therewith; and
E.
Master Franchisee understands and acknowledges the importance of [Franchisor]‘s high
standards of quality, appearance, and service, and the necessity of operating the [Franchisor]
Centres in conformity with [Franchisor]‘s standards and specifications.
NOW, THEREFORE, the parties agree as follows:
1. GRANT
1.1 [Franchisor] grants to Master Franchisee the right, in the Territory, and Master Franchisee
accepts the obligations, pursuant to the terms and conditions of this Agreement, and in accordance with
the development schedule described in Section 2.3 hereof:
(a) The right and license to use the Proprietary Marks in connection with the business to be
conducted by Master Franchisee pursuant to the provisions of this Agreement: and
(b) To license Franchisees (“FRANCHISEE(S)”) to establish and operate Franchised Centres
pursuant to a separate Franchise Agreement for each such Franchised Centre unit as
described in Section 2 hereof. Master Franchisee owned centres, and Franchised Centres
shall be referred to collectively in this agreement ([Franchisor] Centre(s)”); and
1.2 Except as otherwise described in Section 2.8 hereof, neither [Franchisor] nor any affiliate of
[Franchisor] shall establish or operate, or franchise any entity to establish or Operate, a business using the
Proprietary Marks and System at any location within the Territory.
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