MKB Juristen drafts custom legal documents
It is best not to cobble together or copy important contracts, terms and conditions, and other legal documents yourself. We help entrepreneurs on a budget with customized legal solutions, clear costs upfront, and practical explanations.
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Having a franchise agreement drafted by a legal expert typically costs between €1,000 and €3,500, depending on the complexity of the formula and whether it involves an entirely new contract or a review of an existing model. For that amount, you receive a contract that complies with the Franchise Act (2021): including a correct pre-contractual information obligation, the four-week standstill period, the right of consent, a goodwill arrangement, and a non-compete clause within legal limits. Below are the costs, the process, and what you can expect from each step.
The short answer
- Costs: approximately €1,000 – €3,500 for a custom franchise agreement.
- Checking existing contract: often €500 – €1,500.
- Process: intake, pre-contractual file, draft, 4-week standstill, signing.
- What you get: a contract that complies with the Franchise Act, including fees, goodwill, and a non-compete clause.
- Who: primarily franchisors, but also franchisees have a concept tested.
Why have a franchise agreement drawn up?
Since the Franchise Act of 2021, a franchise agreement is a named contract with mandatory rules. If you deviate to the detriment of the franchisee, that clause is void — with all the consequences that entails, especially if you use the same model with multiple franchisees. A legal expert ensures that the fee, goodwill, and non-compete clauses are correct and that the pre-contractual process is demonstrably conducted properly.
How much does it cost?
- New tailor-made contract: €1,500 – €3,500, depending on the formula and the number of specific features (multiple regions, online sales, derivative formulas).
- Standard formula, limited customization: € 1.000 – € 1.800.
- Review of an existing or proposed contract: €500 – €1,500, often including point-by-point feedback.
- Pre-contractual information document: sometimes separate, €500 – €1,500.
The range depends on how unique the formula is and whether negotiation is required. An hourly rate agreement or a fixed price are both common.
The process step by step
- Intake: the lawyer maps out the formula, the fees, the territory, and your wishes.
- Pre-contractual file: preparing the information you must provide to the franchisee before signing.
- Draft agreement: the contract with all statutory components.
- Standstill: the franchisee is given a minimum of four weeks' reflection period before signing.
- Signing: after the standstill, with any final adjustments.
What a good lawyer processes
- Pre-contractual duty to provide information plus the four-week standstill in the proceedings.
- Fee structure: entry fee, franchise fee, and marketing contribution, transparent and responsible.
- Right of consent for significant formula changes.
- Goodwill arrangement: how goodwill is determined and compensated at termination.
- Non-competition: maximum of one year, geographically limited to the territory.
Franchisor or franchisee?
A franchisor has the full contract drawn up because it is reused for every franchisee. A franchisee usually has a proposed concept reviewed: is the forecast accurate, is the fee reasonable, is the non-compete clause not too broad, and is there a goodwill arrangement? This review is relatively inexpensive and fits perfectly within the four-week standstill period.
A brief practical example
A new franchisee is offered a contract and has it reviewed for €900. The legal expert notes that the goodwill clause is missing and that the non-compete clause covers two years and is nationwide. Both points are adjusted before signing: a goodwill clause is included, and the non-compete clause is reduced to one year within the territory. The review more than pays for itself in the event of a potential departure.
Honest recommendation
For a franchisor, a tailor-made contract is almost always worthwhile: it is used everywhere, and an error has repercussions for every location. For a franchisee, a review within the four-week standstill period is a small investment with significant value. Choose a lawyer who is familiar with the Franchise Act and looks not only at the text but also at the process.
When do you not need a lawyer? If you are still exploring your options or simply want to outline your formula and fees, you can prepare this yourself. However, as soon as a concrete contract is drawn up that must comply with the Franchise Act and is about to be signed, professional guidance is advisable.
Read more: franchise agreement, what is a franchise agreement and drafting a franchise agreement.
Frequently Asked Questions
Typically €1,000 – €3,500 for a tailored contract, depending on the complexity of the formula. Reviewing an existing or proposed contract often costs €500 – €1,500. A separate pre-contractual information document can cost €500 – €1,500.
Through the intake, the preparation of the pre-contractual file, a draft agreement, the mandatory four-week standstill period, and finally, signing. The legal expert ensures that both the content and the process comply with the Franchise Act.
Because the Franchise Act establishes mandatory rules regarding information, standstill, right of consent, goodwill, and non-competition. An error renders a clause void, and in the case of a franchisor, such an error affects every franchisee. Legal review prevents this.
Recommended. Have the proposed proposal reviewed regarding the forecast, the fee, the goodwill arrangement, and the non-compete clause. Such a review costs relatively little and fits perfectly within the four-week standstill period.
Drafting a concept usually takes one to several weeks. After that, a statutory standstill of at least four weeks applies before signing is permitted. So, from the initial consultation to the signature, you can easily count on six to eight weeks.
That varies by lawyer. Sometimes the pre-contractual information is part of the package, sometimes it is drafted separately for €500 – €1,500. Request a clear quote with a fixed price or an hourly estimate in advance.
Yes. Reviewing and adjusting an existing model is often cheaper (€500 – €1,500) than a completely new contract, provided the basis is already usable and only needs to be adjusted on legal points.
