Presentation on Franchise Document

8/14/2019 Presentation on Franchise Document

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PRESENTATIONPRESENTATION

ONONFRANCHISE DOCUMENTFRANCHISE DOCUMENT

byMeena chaudhary


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FRANCHISE DOCUMENTFRANCHISE DOCUMENT

The franchise agreement is the cornerstone

document of the franchisee--franchiserrelationship. It is this document that is legallybinding on both parties, laying out the rightsand obligations of each.

The agreement will contain provisionscovering, in considerable detail, theobligations of the franchiser (the company)and franchisee (you) regarding operating thebusiness


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Why Franchise Agreement isWhy Franchise Agreement is

Needed?Needed?

The F.T.C. Rule 436 Requiring Full Disclosure Makes it Necessary toHave a Written Agreement

All the Parties Have an Understanding of the Basics on Which TheyWill Operate

Equitable Relationship

Insures Uniformity

Establishes Standards of Performance

Protects All the Parties

Provides for Remedies in the Event of Default


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FRANCHISE AGREEMENTFRANCHISE AGREEMENT

GRANTING OF RIGHTSThe Franchisor hereby grants to the Franchisee the right to perform

Operational Activities, and use the Trademark

BUSINESS SITE AND AREA The Franchisee shall not change the location of its Establishment

without the Franchisors prior written consent

QUALITY STANDARD In performing the Operational Activities, the Franchisee shall

follow the quality standard

REGISTRATION OF AGREEMENT

The Franchisee shall register this Agreement with all relatedinformation to the appropriate authority no later than 30 (thirty)business days after the date of this Agreement


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ADVERTISING The franchisor will bear all the cost on the advertisement of his products ,

services .

TRAINING & TECHNICAL ASSISTANCE The Franchisor will execute training programs concerning particular matters as

required for the implementation

FRANCHISE PRODUCTS The Franchise shall sell the Franchisors Products to the Franchisee

FRANCHISE FINANCING In order to ensure the sustainability of the Operational Activities, the Franchisee

has to manage to provide initial investment of the franchise operation by itsown effort before signing this franchise agreement.

EQUIPMENTS AND MACHINERIES

The Franchisee must use equipments and machineries that must be purchasedand/or leased by the Franchisee from the Franchisor.


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REPORTING, CONTROLLING AND INSPECTION Franchisee must Keep Complete Records as Prescribed by the franchisor and

provide reports. Franchisee allow franchisor for inspection

FEES AND PAYMENT METHOD The Franchisee shall pay a Franchise Fee to the Franchisor, which comprise of: a.Franchise Fee . The Franchisee shall pay the Franchise Fee prior to the signingof this agreement.

TERM AND EXTENSION OF AGREEMENT This Agreement shall be valid for 5 (five) years from the date this Agreement is

signed. Extension of this Agreement may be extended upon the agreement ofthe Parties, for additional period of 5 (five) years

TERMINATION OF AGREEMENT Each Party is entitled to terminate this Agreement in the event of . the

occurrence of an event of default under of this Agreement

CONFIDENTIALITY The Franchisee, its affiliates, executives, directors, employees, and agents shall

keep confidential all information and Manual obtained from the Franchisor


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GOVERNING LAW This Agreement and the rights and obligations of Parties shall be executed and

interpreted in accordance with the laws of the [YOUR COUNTRY]

DISPUTE RESOLUTIONS All disputes arising between the Parties shall besettled through mutual discussions within 14 (fourteen) calendar days

NOTICES

Any notice shall be in writing and shall either be personally delivered ortransmitted by prepaid registered mail

ASSIGNMENT This Agreement, including the rights and obligations contained herein, may not

be assigned by the Franchisee to any other third party without prior writtenapproval from the Franchisor.

INDEMNITY The Franchisor shall not be responsible for any losses or damages which may be

suffered, directly or indirectly, by the Franchisee


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CONCLUSIONCONCLUSION

There is no standard form of franchise

agreement because the terms, conditions,and the methods of operations of variousfranchises vary widely depending on the

type of business involved


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THANKSTHANKS

Documents

Presentation on Franchise Document