SUB-FRANCHISEE Clause Samples

The SUB-FRANCHISEE clause defines the rights and obligations of a party that is granted a sub-franchise under the main franchise agreement. Typically, this clause outlines the conditions under which a sub-franchisee may operate, such as adherence to brand standards, payment of fees, and compliance with operational guidelines set by the franchisor or master franchisee. By clearly establishing the relationship and expectations for sub-franchisees, this clause ensures consistency across the franchise network and helps prevent disputes regarding authority and responsibilities.
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SUB-FRANCHISEE. The Master Franchisee shall at all times comply with each provision of this Agreement and shall use its best endeavors to ensure that each of its Sub-Franchisees complies with their Franchise Agreement and, without limiting the generality of the foregoing, if in the Franchisor's opinion any Sub-Franchisee is in breach of its Franchise Agreement, the Master Franchisee shall take all steps reasonably required by the Franchisor to ensure that each Sub-Franchisee corrects any such breach.