All templatesFRANCHISE AGREEMENT
THIS AGREEMENT is made on 1 October 2026
BETWEEN
(1) JAVA BITES KENYA LIMITED (the Franchisor); and
(2) ELDORET BREW COMPANY LIMITED (the Franchisee).
RECITALS
(A) The Franchisor has developed a business system operated under its trade marks.
(B) The Franchisor has agreed to grant the Franchisee a franchise to operate that business in the territory described, on the terms of this Agreement.
IT IS AGREED as follows:
1. Definitions
1.1 In this Agreement, unless the context otherwise requires:
(a) "Business" means the business the Franchisee operates under this Agreement;
(b) "Business Day" means a day other than a Saturday, a Sunday or a public holiday in Kenya;
(c) "Manual" means the Franchisor's operations manual, as updated from time to time;
(d) "System" means the Franchisor's methods, standards and know-how for operating the Business;
(e) "Territory" means Eldoret town, Uasin Gishu County;
(f) "Trade Marks" means the trade marks and trade names under which the Franchisor's business system is operated.
2. Grant
2.1 The Franchisor grants the Franchisee the right to operate the Business under the Trade Marks and in accordance with the System, in the Territory and nowhere else.
2.2 The Franchisee shall operate the Business only from premises in the Territory that the Franchisor has approved in writing.
2.3 The right granted under this clause is personal to the Franchisee.
3. Term
3.1 This Agreement starts on its date and continues for a term of 5 years, unless it is ended earlier under the Termination clause.
4. Fees
4.1 The Franchisee shall pay the Franchisor a franchise fee of KES 3,500,000 on the signing of this Agreement.
4.2 The Franchisee shall pay the Franchisor an ongoing royalty of:
(a) 6% of monthly gross sales; and
(b) 2% marketing levy.
4.3 The Franchisee shall give the Franchisor, within 10 days after the end of each month, a written statement of its sales for that month and shall pay the royalty due with it.
4.4 All payments under this Agreement shall be made in cleared funds without set-off.
5. Training and Support
5.1 The Franchisor shall provide the following training and support:
(a) four-week initial training at the Nairobi training centre;
(b) access to the confidential operations manual;
(c) site-selection support; and
(d) quarterly field visits.
5.2 The Franchisee shall ensure that the people who run the Business complete the training.
6. Quality Control
6.1 The Franchisee shall at all times operate the Business in accordance with the Manual and the System.
6.2 The Franchisee shall maintain the standards of quality, service and cleanliness that the Manual sets.
6.3 The Franchisee shall sell only the products and services that the Franchisor has approved.
6.4 The Franchisor may enter and inspect the premises of the Business at any reasonable time.
6.5 The Franchisee shall put right any failure to meet the standards set by the Manual within 30 days of the Franchisor's written notice to do so.
7. Trade Marks
7.1 The Franchisor grants the Franchisee a non-exclusive, non-transferable licence to use the Trade Marks in the Territory, only for the Business and only in the form the Manual prescribes.
7.2 All goodwill arising from that use belongs to the Franchisor.
7.3 The Franchisee shall not register or use any mark or name confusingly similar to the Trade Marks, and shall not use the Trade Marks as part of its own company or business name without the Franchisor's written consent.
7.4 The Franchisee shall tell the Franchisor promptly of any infringement of the Trade Marks that it learns of.
8. Manual and Confidentiality
8.1 The Manual and the System are the confidential property of the Franchisor.
8.2 The Franchisee shall use the Manual and the System only to operate the Business.
8.3 The Franchisee shall not copy the Manual, and shall not disclose the Manual or the System to any person except an employee who needs it to operate the Business and who is bound to keep it confidential.
8.4 The Franchisee shall return the Manual to the Franchisor when this Agreement ends.
8.5 The duty of confidence under this clause continues after this Agreement ends.
9. Records and Audit
9.1 The Franchisee shall keep complete and accurate records of the sales of the Business.
9.2 The Franchisor may, on reasonable notice, inspect and audit those records itself or by its accountants.
9.3 The Franchisee shall pay any royalty the audit shows to be unpaid within 14 days of being told the amount.
10. Termination
Business and deals
Franchise agreement template (Kenya)
Also called: Franchise Agreement
What it is for
Letting someone run a business under your brand, or taking a franchise.
The Kenyan law it follows
- Trade Marks Act Cap 506
- Law of Contract Act Cap 23
Who prepares it
You can prepare this yourself. It is still wise to have an advocate read it before you sign, especially where a lot of money or a long commitment is involved.
Fill this in with your own details
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Sample franchise agreement
The first part of the sample is shown here. The names, amounts and facts are made up to show how the document reads.
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This is a sample for general information. It is not legal advice and may not suit your situation. Laws change, and a document has to fit your own facts; have an advocate check it before you rely on it.