Business · avanzado

Basic Franchise Agreement

This basic franchise agreement template is designed for use in Paraguay, with formal structure, party appearance and editable clauses. You can adapt it online before generating a professional PDF.

Edit now View category Ask a contract lawyer

Wording version

Choose the depth before editing: short, medium, long or detailed.

Short Medium Long Detailed

Editable guide

Information you will replace

These references appear inside the contract text so you know exactly what to change before generating the PDF.

Party A name Example: e.g. Juan Pérez

Party A ID Example: e.g. 1,234,567

Party B name Example: e.g. María González

Party B ID/Tax ID Example: e.g. 80012345-6

Amount Example: Initial fee: e.g. Gs. 25,000,000 (twenty-five million guaraníes)

Date Example: e.g. 05/02/2026

BASIC FRANCHISE AGREEMENT

In the city of Asunción, Republic of Paraguay, on [Date: e.g. 05/02/2026], appears on one side [Party A name: e.g. Juan Pérez], holder of ID No. [Party A ID: e.g. 1,234,567], domiciled at [Party A address: e.g. Asunción], hereinafter "PARTY A"; and on the other side [Party B name: e.g. María González], holder of ID/Tax ID No. [Party B ID/Tax ID: e.g. 80012345-6], domiciled at [Party B address: e.g. San Lorenzo], hereinafter "PARTY B". The parties state that they have sufficient capacity to bind themselves and agree to execute this private instrument, subject to the following clauses:

FIRST: PURPOSE

PARTY A and PARTY B agree to to authorize the FRANCHISEE limited use of the brand, trade dress and know-how of [Brand: e.g. Café Centro] in [Location: e.g. Luque]. This agreement shall be interpreted in good faith, according to its economic purpose and prudent Paraguayan legal practice.

SECOND: PRICE AND PAYMENT METHOD

As consideration, price, rent, contribution or economic acknowledgment, according to the nature of the act, the parties establish [Initial fee: e.g. Gs. 25,000,000 (twenty-five million guaraníes)] and [Royalty: e.g. 5% of monthly net sales]. Every payment must be documented by receipt, bank voucher or sufficient written record.

THIRD: TERM

The term or effectiveness shall be [Term: e.g. 3 years], subject to compliance with manuals and operating standards. Any extension, suspension or amendment must be made in writing and physically or digitally signed by the parties.

FOURTH: OBLIGATIONS OF THE PARTIES

The FRANCHISOR shall deliver manuals, initial training and brand guidelines.
The FRANCHISEE shall operate the business respecting image, quality, authorized suppliers and own tax obligations.
Operational audits shall be conducted with reasonable notice, except brand or safety urgencies.

EIGHTH: JURISDICTION

For any dispute arising from this instrument, the parties shall seek an amicable solution. If disagreement persists, they submit to the competent ordinary courts of the Republic of Paraguay, without prejudice to mandatory rules applicable by subject matter or territory.

NINTH: ACCEPTANCE

Having read this document and as evidence of agreement, the parties sign two counterparts of the same tenor and for one single effect, at the place and date indicated above.

PARTY A signature: ___________________________

PARTY B signature: ___________________________