A Franchise Agreement defines the relationship between a franchisor and franchisee, setting the terms for brand use, operations, and ongoing support. This playbook outlines key negotiation strategies, performance obligations, and critical clauses to protect both parties’ long-term interests.
Why This Matters: Clear IP provisions prevent future disputes over ownership, ensure freedom to operate, and protect proprietary assets. They support innovation and maintain competitive advantage.
Negotiation strategy
If you're the Franchisor:
Ensure that all background IP remains with the Company and negotiate for joint ownership or exclusive licenses for newly created IP. Include strong indemnity clauses to protect against infringement claims.
If you're the Franchisee:
Negotiate for fair compensation for any IP created and ensure the ability to use and license the IP independently. Seek to limit indemnity obligations to reasonable levels.
Essential elements
1
IP Ownership
Defines who owns the IP.
2
Licensing Terms
Outlines usage and licensing rights.
3
Infringement Indemnity
Protects against IP infringement claims.
Action framework
ACCEPT
Propose edits if the IP ownership terms do not align with strategic goals or if indemnity clauses are insufficient.
EDIT
Reject if the clause fails to protect proprietary assets or imposes unreasonable restrictions.
ADD
Add language to address any missing elements such as usage rights or indemnity provisions.
PRO TIP
Always ensure IP clauses are tailored to the specific needs of the project and business objectives.
Example clauses
FAVORABLE
Preferred IP Ownership
"The ownership of all background IP remains with the originating party, while any newly created IP under this agreement shall be jointly owned/licensed as per the terms outlined herein."
NEUTRAL
Co-ownership for Joint Projects
"For joint development projects, the parties agree to co-own any resulting IP, with each party having the right to use and license the IP independently."
UNFAVORABLE
Unclear IP Rights
"The parties will discuss IP ownership as needed, without any predefined terms."
Fallbacks
Joint Development Projects
In joint development projects, ensure equitable distribution of IP rights and benefits, allowing both parties to use and license the IP independently.
High-Risk Projects
For high-risk projects, prioritize strong indemnity clauses and clear ownership terms to mitigate potential legal challenges.
Cross-Border Agreements
In cross-border agreements, consider jurisdictional differences in IP laws and ensure compliance with international standards.
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WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
Launch
We support you in rolling out DocJuris to a pilot group or your full organization—with launch materials, training, and hands-on support to drive adoption from day one.
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