SignSolú

Franchise agreement template: free in Word, or sign it online

Reviewed in October 2026

A franchise agreement lets a franchisee run a business under the franchisor's brand and system for a fee. It sets the territory, the initial fee, royalties, training, standards and how the relationship ends. In the US it goes with a disclosure document delivered beforehand.

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Ten documents free, no card. Signed by the franchisor and the franchisee.

Franchise agreement example, filled in with sample data
Example filled in with sample data

The full franchise agreement

FRANCHISE AGREEMENT

This Franchise Agreement (the "Agreement") is made on [date] between [Franchisor legal name], with address at [address] (the "Franchisor"), and [Franchisee legal name], with address at [address] (the "Franchisee").

1. Grant

The Franchisor grants the Franchisee the right to operate one [type of business] under the [brand] name and system (the "Franchise") at [address or area].

2. Territory

The Franchisor will not open or license another [brand] location within [territory description] during the Term, while the Franchisee complies with this Agreement.

3. Term

This Agreement lasts [number] years from the opening date. The Franchisee may renew once for [number] years if it is not in default.

4. Initial fee

The Franchisee will pay an initial franchise fee of [amount] when signing this Agreement. The fee is [non-refundable or refundable under these conditions].

5. Royalties and marketing fund

The Franchisee will pay a royalty of [percentage] of gross sales and a marketing contribution of [percentage], by [day] of each month for the previous month.

6. Training and opening support

The Franchisor will train the Franchisee and [number] managers for [number] days before opening and will provide on-site support during the first [number] days of operation.

7. Standards

The Franchisee will follow the operations manual, buy required products from approved suppliers and keep the location as the brand standards require.

8. Trademarks

The Franchisee may use the [brand] marks only to run the Franchise. All goodwill belongs to the Franchisor.

9. Reports and audits

The Franchisee will report gross sales monthly and allow the Franchisor to audit its books with [number] days of notice.

10. Transfer

The Franchisee may not sell the Franchise without the Franchisor's written approval, which will not be unreasonably withheld.

11. Termination

The Franchisor may end this Agreement if the Franchisee fails to pay, abandons the location or materially breaches the standards and does not cure within [number] days of notice.

12. After termination

The Franchisee will stop using the marks, return the manual and, for [number] months, will not run a competing business within [distance] of the location.

13. Disclosure acknowledgment

The Franchisee confirms it received the Franchisor's disclosure document on [date], at least 14 calendar days before signing this Agreement or paying any fee.

14. Governing law and signature

This Agreement is governed by the laws of [state]. The parties agree to sign it electronically, with the same effect as a handwritten signature.

Franchisor

Name and title: ______________

Date: ______________

Franchisee

Name and title: ______________

Date: ______________

What the template includes

  • Right to operate under the brand at one location
  • Protected territory
  • Term and renewal
  • Initial fee and refund terms
  • Royalty and marketing contribution
  • Training and opening support
  • Operations manual and approved suppliers
  • Trademark use and goodwill
  • Sales reports and audits
  • Transfer with franchisor approval
  • Termination, post-term non-compete and governing law
  • Acknowledgment of the disclosure document date

What you fill in

FieldExample
FranchisorSunny Bowl Franchising LLC
FranchiseeR&J Eats Inc.
Location1420 Main Street, Columbus, Ohio
Territory3-mile radius
Term10 years
Initial feeUSD 35,000
Royalty6% of gross sales
Marketing fund2% of gross sales
Disclosure document receivedSeptember 30, 2026

How it gets signed

  1. 1Choose «Use this template», fill in the fields and review the full franchise agreement.
  2. 2Send it by WhatsApp or email. The other party opens the link on their phone without an account.
  3. 3They tap the brown bar at the bottom that says «Sign as …» and draw their signature once.
  4. 4Everyone gets the signed PDF with its signature certificate. Anyone can check it at signsolu.com/verificar.

The signing screen tells each signer that signing means agreeing to sign electronically. It links to the electronic signature disclosure that the ESIGN Act asks for.

What you get once everyone signs

  • The signed PDF. The final franchise agreement with every drawn signature in place.
  • The signature certificate. It lists each signer and the date and time of each signature.
  • A record you can check. The folio on the certificate opens the document history at signsolu.com/verificar.
  • Reminders. Turn them on and SignSolú reminds every signer who has not signed yet.

Your first ten documents are free and need no card.

What the law says

The FTC Franchise Rule, 16 CFR 436, asks the franchisor to give the prospective franchisee its disclosure document at least 14 calendar days before signing a binding agreement or paying any fee.

Several states add their own registration or disclosure rules for franchise sales. Check the state where the franchise will operate before you sign.

The ESIGN Act, 15 U.S.C. 7001 gives an electronic signature the same legal effect as one on paper. A contract cannot be denied effect only because it was signed electronically.

Signing order that keeps the dates clean

  1. 1Send the disclosure document and ask the franchisee to sign the receipt page.
  2. 2Wait at least fourteen calendar days from that signature.
  3. 3Send this agreement with the receipt date filled in clause 13.
  4. 4Collect the initial fee only after both parties sign.

Each step leaves a signed PDF with its certificate. Keep them together in the franchisee's file.

Franchise agreement and disclosure document

The disclosure document explains the system, the costs and the franchisor's history. The agreement is the contract the franchisee signs after reading it.

SignSolú records the date each document is signed. That record helps show the 14-day gap was respected.

Fees franchisees compare

  • Initial fee. Paid once, at signing.
  • Royalty. A percentage of gross sales, paid monthly.
  • Marketing fund. A smaller percentage for brand advertising.
  • Renewal and transfer fees. Paid when the term renews or the franchise is sold.

Common mistakes

Signing before the 14 days. Send the disclosure document first and wait the full period before asking for a signature.

Vague territory. Describe it with a map, a radius or zip codes so both sides read it the same way.

Renewal and transfer

Renewal usually depends on being current on payments and meeting the brand standards. Some franchisors ask for a remodel before renewing.

A franchisee who sells needs the franchisor's approval of the buyer. The buyer signs a new agreement on the terms in force at that time.

What franchisees check before signing

  • Total opening cost, not just the initial fee.
  • Royalty base, gross sales or net sales.
  • Whether the territory is exclusive or only protected.
  • Supplier rules and markups on required products.
  • Post-term non-compete length and distance.

Franchisors that answer these points in writing close faster. The franchisee signs with fewer questions and less back and forth.

Talk with two or three current franchisees before signing. Their numbers say more than any projection in a sales deck.

Before you sign

Other templates

Frequently asked questions

Is a franchise agreement signed online legally binding?

Yes. The ESIGN Act gives electronic signatures the same effect as handwritten ones. The signed PDF and its certificate show who signed and when.

Can I send the disclosure document through SignSolú too?

Yes. Send it first for acknowledgment. Fourteen days later, send the agreement. Each signature keeps its own date.

Does this template replace a franchise disclosure document?

No. The disclosure document is separate and has its own required content.

Does the other party need a SignSolú account?

No. They open the link on their phone and sign with the brown bar at the bottom.

Can I edit the clauses before sending it?

Yes. After «Use this template» you can change any clause before you send it.

Who signs for the franchisee if it is a company?

An officer with authority. Many franchisors also ask the owners to sign a personal guaranty.

Can the owners sign a personal guaranty in the same request?

Yes. Upload the guaranty with the agreement and add each owner as a signer.

Does the 14-day period count weekends?

Yes. The FTC rule speaks of calendar days, so weekends and holidays count.

See also

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