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Franchise Agreement Amendment Form

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FRANCHISE AGREEMENT AMENDMENT

This Franchise Agreement Amendment (the "Amendment") is made as of Effective Date: by and between Franchisor: , a organized under the laws of , with principal place of business at (hereinafter "Franchisor"), and Franchisee: , with mailing address at (hereinafter "Franchisee"). The Franchisor and Franchisee are sometimes referred to herein individually as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, the Parties entered into a Franchise Agreement dated (the "Agreement"), which sets forth the rights and obligations of the Parties with respect to the operation of the franchised business; and

WHEREAS, the Parties desire to amend certain provisions of the Agreement as set forth in this Amendment to reflect mutually agreed modifications to territory, fees, term, operational standards, or other provisions; and

WHEREAS, except as expressly modified by this Amendment, the Agreement shall remain in full force and effect.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. AMENDMENT TO AGREEMENT

1.1 Amendment. The Agreement dated is hereby amended as set forth in Section 2 below. Except as expressly modified by this Amendment, all terms, covenants and conditions of the Agreement remain unchanged and in full force and effect.

2. SPECIFIC MODIFICATIONS

2.1 Sections Amended. The Agreement is amended to modify the following provision(s): Section(s) . The existing language of each identified provision is hereby deleted in its entirety and replaced with the language set forth below or in the Replacement Text field.

2.2 Optional Adjustment of Fees or Royalties. If this Amendment effects a change to any fees, royalties or other monetary obligations, such adjustments shall be as follows: . Any change to payment timing or method shall be set forth in writing and signed by both Parties.

2.3 Term and Renewal. To the extent this Amendment affects the term or renewal provisions of the Agreement, the Parties agree: .

3. REPRESENTATIONS AND WARRANTIES

3.1 Each Party represents and warrants that (a) it has the full power and authority to enter into and perform this Amendment; (b) the execution and delivery of this Amendment and the performance of its obligations hereunder have been duly authorized by all necessary corporate or other action; and (c) this Amendment constitutes a valid and binding obligation enforceable against such Party in accordance with its terms.

3.2 No Conflict. Except as disclosed in writing prior to the Effective Date, neither the execution nor the performance of this Amendment will (i) violate any law, judgment, order or decree applicable to the Party, nor (ii) result in a breach of, or constitute a default under, any agreement to which such Party is a party.

4. EFFECT OF AMENDMENT; CONTINUING EFFECT

4.1 Except as expressly amended by this Amendment, all rights, obligations, covenants and restrictions contained in the Agreement shall remain in full force and effect. This Amendment shall be read together with the Agreement and, except as expressly modified hereby, shall not be construed as a waiver or release of any rights or remedies under the Agreement.

5. NOTICES

5.1 Notice Addresses. All notices required or permitted under this Amendment shall be in writing and delivered in accordance with the Agreement. For the purposes of this Amendment, the Parties designate the following notice recipients and addresses:

6. MISCELLANEOUS PROVISIONS

6.1 Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of , without giving effect to conflicts of law principles that would result in the application of the laws of another jurisdiction.

6.2 Entire Agreement. This Amendment and the Agreement constitute the entire agreement between the Parties with respect to the subject matter hereof and supersede all prior or contemporaneous understandings, agreements, negotiations and discussions, whether oral or written, of the Parties regarding the subject matter of this Amendment.

6.3 Severability. If any provision of this Amendment is held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

6.4 Amendments; Waiver. No amendment, modification or waiver of any provision of this Amendment shall be effective unless set forth in a writing signed by both Parties. No waiver of any breach or default shall constitute a waiver of any subsequent breach or default.

6.5 Counterparts and Electronic Signatures. This Amendment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be binding and treated as original signatures for all purposes.

7. AUTHORITY

Each signatory below represents and warrants that he or she is authorized to execute this Amendment on behalf of the Party for which such signatory purports to act and that the Party will be bound thereby.

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Effective Date first written above.

Franchisor - Printed Name:

By:

Date:

Franchisee - Printed Name:

By:

Date:

Enter text✕

What the Franchise Agreement Amendment Form Is and when it’s used

A Franchise Agreement Amendment Form is a written modification to an existing franchisor–franchisee contract that records agreed changes to term, territory, fees, services, or operational requirements. It supplements the original franchise agreement without replacing it and must identify the original agreement, specify the amended provisions clearly, state the effective date, and be executed by authorized signatories. Amendments are often used to add new locations, change royalty or advertising fees, adjust renewal terms, or resolve compliance updates while maintaining the original contract’s remaining provisions in force.

Why a clear, well-drafted amendment matters

A precise Franchise Agreement Amendment Form reduces dispute risk, preserves franchise system integrity, and clarifies obligations after change. Under U.S. law electronic amendments can be binding if ESIGN (15 U.S.C. ch. 96) or state UETA requirements are met.

Why a clear, well-drafted amendment matters

Who typically prepares and signs an amendment

Common participants include franchisor legal or operations teams, franchisee owners, and their counsel; accountants or franchise consultants may also review financial changes.

  • Franchisor legal teams: Drafts amendment language, ensures consistency with system policies, and confirms required approvals.
  • Franchisee owners: Reviews business impact, obtains internal approvals, and confirms financial or operational feasibility.
  • Outside counsel or advisors: Reviews enforceability, tax consequences, and state-specific compliance issues before signature.

Final execution requires the parties designated in the original agreement or their authorized representatives; track authority and dates carefully to avoid disputes.

Authorized signers and their roles

Franchisor Authorized Signatory

Typically a VP of Legal, General Counsel, CEO, or an officer with delegated authority who executes amendments on behalf of the franchisor. Their signature should be backed by corporate resolution or written delegation showing authority to bind the franchisor; include printed name, title, and date to reduce later challenges.

Franchisee Authorized Signatory

Usually the individual who signed the original agreement or another person with written authorization (owner, managing member, or corporate officer). The amendment should reference the franchisee entity, show the signer’s capacity, and attach any power of attorney or board minutes if authority is delegated.

Step-by-step: how to complete and execute an amendment

Follow these sequential steps to prepare, approve, and execute a Franchise Agreement Amendment Form.

  • 01
    Draft Amendment: Identify clauses to modify and draft precise replacement language.
  • 02
    Internal Review: Obtain approvals from legal, operations, and finance stakeholders.
  • 03
    Signatory Confirmation: Verify delegated authority and prepare supporting delegation documents.
  • 04
    Execute and Distribute: Obtain signatures, date the amendment, and circulate final fully executed copies.

How to set up an online amendment workflow

Configure a clear signing order and authentication steps to streamline e-execution and preserve an audit trail.

Field Configuration
Signing Order Set franchisor then franchisee sequential signing
Authentication Email + SMS code or stronger, depending on sensitivity
Required Attachments Attach power of attorney or board resolution if applicable
Audit Trail Record IP, timestamp, and signer details for each action

Where to send and file the executed amendment

Route executed copies to the parties, legal files, and relevant franchise operations teams; determine any required external filings.

  • Franchisor Records: Maintain signed original or certified electronic copy in corporate contract repository.
  • Franchisee Records: Keep an executed copy at the local business and with corporate counsel.
  • Accounting/Finance: Update royalty or fee schedules and billing systems.
  • Regulatory Filings: File with state agencies only if required by local franchise law.

Technical and security considerations for e-signing

Ensure your eSignature platform supports required authentication, audit trails, and retention to meet legal and franchise-system requirements.

  • Authentication: Email, SMS code, or stronger
  • Audit Trail: IP, timestamp, and signer metadata
  • File Formats: PDF/A export and long-term storage

Typical timing and critical deadlines for amendments

Account for internal approval cycles and any notice or cure periods before an amendment takes effect.

Internal Review Cycle:

Allow 5–15 business days for legal and finance review

Notice Periods:

Respect original agreement notice requirements when changing substantive terms

Effective Date:

Record as MM/DD/YYYY; can be retroactive only if parties expressly agree

Billing Changes:

Give 30–60 days’ notice for fee or royalty adjustments

Filing Windows:

File with regulators within deadline if state law requires notification

Common mistakes to avoid when preparing an amendment

  • Vague language: Leaving terms undefined creates future disputes and increases litigation risk.
  • Missing authority: Signing without documented delegation can lead to unenforceability or later repudiation.
  • Inconsistent cross-references: Failing to reference clause numbers or original dates causes ambiguity.
  • Improper effective date: Using oral or ambiguous dates can affect performance obligations and notice periods.

Key legal and business risks from incorrect amendments

Breach Claims: Monetary damages
Enforceability: Judicial invalidation
Regulatory Fines: State franchise law penalties
Tax Consequences: Recharacterized income
Operational Disruption: Service or supply gaps
Reputational Harm: Franchisee relations strained

Essential components of a professional amendment form

A complete amendment should be structured, precise, and reference the original agreement so it integrates cleanly into the contract record.

Clear reference

Identify the original agreement by title and date, name all parties exactly as in the original, and state that the document is an amendment to avoid ambiguity about intent.

Scope of changes

List each clause being changed, quote the original clause number, and provide the amended text in full rather than describing changes qualitatively.

Effective date

Specify the exact effective date in MM/DD/YYYY format and indicate whether changes are prospective or retroactive, plus any transitional obligations.

Consideration

If applicable, state the consideration supporting the amendment (dollar amounts, credit, or mutual promises) and the payment schedule.

Authority statement

Include a representation that each signer has authority to bind their party and attach any required corporate or franchisee approvals or resolutions.

Execution blocks

Provide signature lines with printed name, title, date, and space for witness or notary acknowledgements if required by law or the original agreement.

eSignature vendor pricing and capability snapshot

Compare basic starting prices and key capability differences when choosing an eSignature provider for executing amendments; signNow is listed first per vendor comparison rules.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes Varies by plan
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year limit Varies by plan Varies by plan Varies by plan

Frequently asked questions about amendments and e-execution

Answers to common legal, technical, and procedural questions encountered when preparing or signing franchise agreement amendments.


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