McDonalds Franchise Contract is one that provides a business opportunity to an individual or an organization who wishes to open a McDonald’s outlet. The franchise contract provides all the terms specified by the parent company that needs to be agreed by the franchisee in order to have validity for the contract. It is on account of the franchise contract that the other company gets the license to sell the products under the name of the parent company.

Sample McDonalds Franchise Contracts

This contract of franchise agreement is signed on 7th May, 2012 between McDonald’s restaurants and Oak Brook Hospitality Company.

Interpretation of contract :-

  • The license issued to the franchise is one that includes the comprehensive restaurant system followed by the parent company along with proprietary food recipes, beverages and inventory methodology.
  • The franchise is provided to the franchise company on the basis of the trust and relationship that both the companies enjoy.
  • The franchise company is required to pay $20,000 as one time franchise fee and a minimum of 3% of the revenue that is generated by the franchise restaurant each month to the parent company.
  • The franchise agrees to abide by the standards and intellectual property rights according to the standards prescribed by the parent company at all times mandatorily.
  • The parent company McDonalds grants unconditional rights to the franchise company to operate the restaurant in the areas as desirable to the franchise company.
  • The franchise has the right to advertise about being a franchise of the parent McDonald’s restaurant by bearing all the necessary costs related to advertising.
  • The franchise does not have the right to sub-license the franchise to any other company without the prior approval of the parent company.
  • The term of franchise is valid for 10 years and can be extended further if both the party agrees to the same.

In agreement to all the above conditions, both the parties provide their signature below:

Signature of the parent company: _______________

Signature of the franchisee company: ____________

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