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The Multi Unit Franchise Agreement is a sophisticated legal instrument used in the South African franchise industry when a franchisor wishes to grant rights to a franchisee to develop and operate multiple units of the franchise system within a defined territory. This agreement type is particularly relevant for established franchisors looking to expand rapidly through capable franchisees who can manage multiple locations. The document must comply with South African legislation, particularly the Consumer Protection Act 68 of 2008, which specifically regulates franchise relationships. It typically includes comprehensive provisions for development schedules, territory rights, operational standards, support services, and the relationship between the master agreement and individual unit agreements. This agreement is more complex than a single-unit franchise agreement as it must address the additional complications of multiple unit development, territory protection, and development schedules while ensuring compliance with South African competition law and other relevant regulations.

1. Parties: Identification of the franchisor and multi-unit franchisee, including their full legal details and registration information

2. Background: Context of the agreement, description of the franchise system, and the parties' intention to enter into a multi-unit development arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules for interpretation

4. Grant of Multi-Unit Development Rights: Scope of development rights, territory definition, and exclusivity provisions

5. Development Schedule and Obligations: Timeline and requirements for opening each franchise unit, including development quotas and milestones

6. Fees and Payment Terms: Development fees, franchise fees, royalties, and other financial obligations for each unit

7. Individual Franchise Agreements: Requirements for executing separate franchise agreements for each unit and their relationship to the master agreement

8. Training and Support: Franchisor's obligations regarding initial and ongoing training, support services for multiple units

9. Brand Standards and Quality Control: Requirements for maintaining consistent brand standards across all units

10. Intellectual Property Rights: Use of trademarks, trade secrets, and other IP across multiple units

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

13. Default and Termination: Grounds for termination, cure periods, and consequences of termination

14. Post-Termination Obligations: Obligations of both parties after agreement termination

15. Assignment and Transfer: Rights and restrictions regarding transfer of the agreement or individual units

16. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

17. General Provisions: Standard legal provisions including notices, governing law, entire agreement, etc.