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Franchise Agreements

Franchise Agreement

Drafting franchise agreements manually requires hours of repetitive work—copying boilerplate clauses, customizing fee structures, ensuring compliance with disclosure requirements, and coordinating multiple exhibits. Each agreement demands meticulous attention to territory definitions, royalty calculations, and termination provisions, leaving little time for strategic client counseling.

Automation ROI

Time savings at a glance

Manual workflow8 hoursAverage time your team spends by hand
With CaseMark15 minutesDelivery time with CaseMark automation
EfficiencySave 32.5x time with CaseMark

The Problem

Franchise agreements are complex transactional documents requiring careful attention to FTC compliance, intellectual property protection, territorial rights, and dozens of interdependent provisions. Manually drafting these agreements from scratch takes 8+ hours and risks inconsistencies, missing critical clauses, or non-compliance with federal and state franchise laws.

The CaseMark Solution

CaseMark automates franchise agreement drafting by intelligently analyzing your franchise terms, business model, and uploaded documents to generate comprehensive, FTC-compliant agreements in minutes. Our AI ensures all critical provisions are included—from IP protection and territorial grants to termination rights and post-term covenants—while maintaining consistency across your franchise system.

Key benefits

How CaseMark automations transform your workflow

Generate complete franchise agreements in 12 minutes vs. 6+ hours manually

Ensure consistent fee structures, territory terms, and compliance provisions across all franchise contracts

Automatically populate royalty calculations, advertising contributions, and renewal terms

Reduce drafting errors with AI-powered clause consistency and cross-reference checking

Scale your franchise practice by handling more clients without increasing drafting time

What you'll receive

Header and Parties
Grant of Franchise
Territory and Exclusivity
Term and Renewal Rights
Initial Franchise Fee
Royalty Fee Structure
Advertising Contributions
Training and Support Obligations
Operations Manual Requirements
Site Selection and Development
System Compliance Standards
Reporting and Audit Rights
Transfer Restrictions and Right of First Refusal
Termination Provisions
Post-Termination Obligations
Signature Block

Document requirements

Required

  • Franchise Business Information
  • Financial Terms Sheet

Optional

  • Territory Map or Description
  • Prior Franchise Agreements
  • Negotiated Terms Summary
  • Operations Manual Outline

Perfect for

Franchise attorneys representing franchisors
Corporate counsel for franchise companies
Business attorneys handling franchise transactions
Franchise development consultants
Transactional attorneys in hospitality and retail sectors

Also useful for

This workflow is applicable across multiple practice areas and use cases

Franchise expansion often requires formation of new corporate entities for franchisees, and franchise agreements are critical documents in structuring these business formations.

Corporate formation attorneys frequently work with franchisors and franchisees to establish legal entities, and franchise agreements define the relationship and operational requirements that inform entity structure decisions.

Franchise agreements are essentially IP licensing agreements that grant franchisees rights to use trademarks, trade secrets, and proprietary systems, requiring careful IP protection provisions.

The workflow includes franchise IP protection as a key feature, and franchise agreements contain extensive licensing provisions for trademarks, service marks, and proprietary business methods that are core IP licensing concerns.

M&A transactions involving franchise businesses require review and drafting of franchise agreements as key transaction documents, particularly for transfer provisions and franchisor consent requirements.

Franchise agreements contain critical transfer restrictions and rights of first refusal that directly impact M&A deal structure, and acquirers need compliant agreements when purchasing franchise systems or individual franchise units.

Commercial Leasing70% relevant

Franchise agreements include site selection and development provisions that must coordinate with commercial lease terms, and many franchisors require lease approval or control provisions.

The workflow specifically includes site selection and development sections, and franchise attorneys often need to ensure franchise agreement provisions align with commercial lease obligations for franchise locations.

Frequently asked questions

Q

How does CaseMark ensure franchise agreements comply with FTC regulations?

A

CaseMark's AI is trained on FTC Franchise Rule requirements and incorporates mandatory disclosures, prohibited provisions, and compliance standards into every agreement. The system flags state-specific franchise relationship laws that may affect termination, renewal, or transfer provisions. All generated agreements include appropriate disclaimers and comply with federal franchise disclosure requirements.

Q

Can I customize the franchise agreement for different franchisees or territories?

A

Yes, CaseMark allows you to input specific terms for each franchise relationship, including unique territorial boundaries, negotiated financial terms, and special provisions. The AI maintains your core franchise system standards while accommodating franchisee-specific modifications. You can also upload prior agreements to ensure consistency across your franchise network.

Q

What intellectual property protections are included in the franchise agreement?

A

Every CaseMark franchise agreement includes comprehensive IP protection provisions: limited trademark licenses, goodwill assignment clauses, unauthorized use prohibitions, confidentiality obligations that survive termination, and post-term de-identification requirements. The agreement clearly establishes franchisor ownership of all marks and proprietary systems while defining permitted franchisee usage.

Q

How long does it take to generate a complete franchise agreement?

A

CaseMark generates a comprehensive, professionally formatted franchise agreement in approximately 15 minutes after you provide the necessary business information and financial terms. This represents a 97% time savings compared to the 8+ hours typically required for manual drafting. The agreement is immediately ready for attorney review and client presentation.

Q

Does the agreement address both termination rights and post-termination obligations?

A

Yes, CaseMark includes detailed termination provisions distinguishing between curable and non-curable defaults, with appropriate notice periods. Post-termination obligations cover immediate cessation of mark usage, premises de-identification, return of confidential materials, payment of outstanding amounts, and reasonable non-compete covenants. The agreement protects franchisor interests while ensuring enforceability.