A franchise development contract is a legal contract document that is developed between an organization referred to as the franchisor and an individual or an organization referred to as the developer. As per the contract the developer gets the development rights of the franchise of the franchisor within a specified location.

Sample Franchise Development Contract

Franchise development contract number: Er 45

Effective date of contract: 12th November 2011

This franchise development contract has been made and entered into between Ralph Lauren Group referred to as the franchisor with its principal place of business located at 234 Hen Road, New York, New Jersey and John Smith referred to as the developer with his principal place of business located at 12 Cock Road, New York, New Jersey.

The franchisor owns certain property rights, logo types, trademarks and commercial for their restaurant business which they may from time to time as per the contract authorize the developer to use in a franchise developed by the developer within a specified location.

The developer assures that he has knowledge about the specifications of the business of the franchisor and is entering into the contract at his own discretion and not influenced by any representative of the franchisor.

The terms and conditions to be followed are:

  1. Within thirty days of the contract effective date, the developer has to meet the representative of the franchisor and prepare a market development plan.
  2. The developer will not be held responsible for any change in market economics or real estate values.

Signature of developer:                                                      Signature of franchisor:

John Smith                                                                 Bruce Lee

(MD, Ralph Lauren Group)

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