Letter of Intent Sample for Franchise

LETTER OF INTENT: FRANCHISE ACQUISITION

Document ID: TR-FRAN-2026-001
Effective Date: [//2026]

INSTRUCTIONS FOR USE

• Completion: This document is to be completed by the prospective Franchisee (or authorized entity representative) and submitted to the Franchisor’s business development department.
• Filing/Retention: Upon execution, all parties must retain a digital and physical copy for a minimum of seven (7) years to comply with standard document retention and auditing protocols.
• Attachments: Mandatory attachments include: (i) Proof of Liquidity/Capital Verification, (ii) Franchise Disclosure Document (FDD) Acknowledgment of Receipt, and (iii) Executive Summary/Personal Financial Statement.

1. PARTIES & FRANCHISE OPPORTUNITY

Prospective Franchisee: []
Franchisor Entity: []
Target Territory/Location: []
Franchise Brand Name: []

2. PROPOSED TERMS & FINANCIAL COMMITMENT

Initial Franchise Fee: $[]
Estimated Total Investment: $[]
Term of Franchise Agreement: [__________] years
Renewal Option: [ ] Yes / [ ] No

3. PRELIMINARY OPERATIONAL REQUIREMENTS

• Site Selection: Franchisee acknowledges that site approval remains the sole discretion of the Franchisor.
  • Proposed Location Type: [ ] Commercial [ ] Retail [ ] Industrial [ ] Other: [__________]
• Training & Certification: Franchisee agrees to complete initial training requirements at [__________] (location) prior to commencement of operations.
• Legal Structure of Franchisee Entity:
  • LLC [ ] Corporation [ ] Partnership [ ] Sole Proprietorship

4. DUE DILIGENCE & NON-BINDING NATURE

The parties acknowledge that this Letter of Intent is intended to serve as a preliminary expression of interest only. Except for the sections regarding Confidentiality and Governing Law, this document is non-binding and does not constitute a formal Franchise Agreement. The issuance of a formal Franchise Agreement is subject to:

1. Successful review of the Franchise Disclosure Document (FDD).
2. Approval of the Franchisee’s financial and operational qualifications.
3. Execution of definitive legal documentation.

5. CONFIDENTIALITY

The Prospective Franchisee agrees to hold all proprietary information, trade secrets, and operational protocols disclosed by the Franchisor in strict confidence. This obligation survives the expiration of this letter.

6. EXECUTION & SIGNATURES

PROSPECTIVE FRANCHISEE:

Signature: __________________________
Printed Name: []
Title: []
Date: [//2026]

FRANCHISOR REPRESENTATIVE:

Signature: __________________________
Printed Name: []
Title: []
Date: [//2026]

Disclaimer: This document is provided as a standardized framework. Consult qualified legal counsel for jurisdiction-specific statutory compliance.