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This Franchise Agreement is made and entered into this ____________________ at the
City of _____________________ by between:
- and -
WITHNESSETH:
Whereas, FRANCHISOR, as a result of expenditure of time, skill, effort and money has
developed and owns an intellectual property related to the operation and distribution of franchise
products.
Whereas, the distinguishing characteristics of the system include but are not limited to
food preparation, products, services, designs, specification and procedures of operation
consistency and uniformity of products and services offered, training and assistance advertising
and promotional programs, all of which may be changed, improved and further developed by
FRANCHISOR from time to time;
Whereas, FRANCHISOR continues to develop use and control the use of such
proprietary marks in order to inform the public the source of service and to represent the
system’s high standards of quality, appearance and services;
Whereas, the FRANCHISEE desires to enter into the business of operating one of
________________ Product and wishes to obtain a contract for that purpose as well as
to receive the training and other assistance by the FRANCHISOR in connection
herewith;
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have signed the same using their business judgment, with or without advise of the counsel and
not in consideration of any representation made by our offices, directors, shareholders,
employees or agents or other terms apart for those embodied in this contract. The
FRANCHISOR made representation to the FRANCHISEE as an encouragement to this
Contract that they have made no misrepresentations in obtaining the license;
1. BUSINESS GRANT
A. Subject to all the terms and provisions hereof FRANCHISOR hereby grant to
FRANCHISEE the right to operate such business.
B. The Grant of Rights to the FRANCHISEE shall only apply to and to allow
him/her to establish and operate such business of _________________, such
business shall at all times be located at
__________________________________________________________________
C. There will be a 300 meters distance for every same concept in a specific location.
D. FRANCHISEE shall not be allowed to transfer the said location to another
without the prior written consent of the FRANCHISOR.
ll. FEES
In consideration of the issuance of the business granted therein FRANCHISEE
shall pay the FRANCHISOR the amount of PESOS:
_______________________________ (Php ________________) as payment of
_______________________, and include the following product inclusions:
Application of Payments
Notwithstanding any designation to the contrary, the FRANCHISOR shall have
sole discretion to apply FRANCHISEE’S payments to any outstanding amount.
A. Non-withholding Payment
The FRANCHISEE acknowledges that the obligation to pay any and all amounts
under this agreement is absolute and that he/she are not entitled under this
Contract to withhold payment of any outstanding obligations for any reason and
such payment cannot be conditioned upon FRANCHISEE’S perception of
compliance with the FRANCHISOR’S obligations.
B. INITIAL TERM
1. The term of this contract shall be for a period of One year beginning on
the date this agreement as approved by the FRANCHISOR and the term are
renewable yearly with no renewal fee, unless this Contract is terminated
sooner.
2. The FRANCHISOR will not charge royalty fee to the franchisee.
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3. Notwithstanding the foregoing, The FRANCHISOR shall have the right
to terminate the contract under the following conditions:
a) Violation of any provision of the Franchise Agreement
b) Failure of the Franchisee to adhere to the quality and operational
standards set forth by the Franchisor.
c) Selling of Products other than the products in scope of the
Franchise without Franchisor’s written consent is not allowed.
d) Default Payments.
e) Using the technology, operational system and products and putting
up a business in competition with Franchisor.
f) Disclosure of Franchise information to competition.
The FRANCHISEE shall obtain at his own expense and keep in force, any
permits, license, or other concerns required for leasing, construction, and
operations without limitations on sales and income tax, health and sanitary
permits, business permits, Department of Trade And Industry, Business Name and
Registration and others.
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Vll. PERSONNEL AND TRAINING REQUIREMENTS
As part of the Franchisor’s support system extended to the FRANCHISEE,
during the term of this Contract, the following provisions and conditions shall
prevail with respect to personnel hiring, training and orientation procedures.
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Xl. RELATIONSHIP OF PARTIES
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Xlll. EFFECT OF TERMINATION
Upon termination of Franchisee’s right granted under this Contract, the following
shall apply:
A. Upon termination of this contract by lapse of time or default, Franchisee’s
right to use the trademarks or any other marks or design shall cease. The
FRANCHISEE shall immediately discontinue the use of the
FRANCHISOR’s trade name and any other design related therein.
B. The FRANCHISEE shall immediately and permanently cease to use the
proprietary marks and any equipment, methods, procedures and techniques
associated with the (FRANCHISOR TRADE NAME) system and marks.
C. The FRANCHISEE shall cease to use all signs, furniture fixture, equipment,
advertisement, materials, stationeries, forms and any other articles that display
form of FRANCHISOR’S marks.
D. The FRANCHISEE shall pay to the FRANCHISOR all sum owing to
FRANCHISOR if the termination of this Contract is because of default by
the FRANCHISEE. FRANCHISEE shall pay the FRANCHISOR all
damages, costs, expenses, including attorney’s fees, and other expenses
incurred by seller as a result of default.
E. Any obligations of FRANCHISOR to FRANCHISEE under this contract
shall immediately cease and terminate.
XlV. NOTICE
Any and all notices required or permitted under this contract shall be written in
English and shall be delivered personally or through registered mail to the
Address of both parties indicated in the first section of this Contract.
In Addition, all legal matters concerning this agreement shall be settled first
within the two parties to promote an Alternative dispute resolution. Based on R.A
9285 of 2004 (An act to institutionalize the use of an alternative dispute resolution
system in the Philippines and to establish the office for alternative dispute
resolution, and for other purposes.)
XV. WAIVER
This contract takes effect upon its acceptance and execution by FRANCHISEE
and FRANCHISOR and shall be governed by and construed in accordance with
the laws of the Philippines. Failure or delay by FRANCHISOR in enforcing any
of the provisions in this contract shall not constitute a waiver of his rights as to
any other provisions.
XVl. ACKNOWLEDGEMENTS
A. This Contract constitute the entire, full and complete contract between
FRANCHISOR and FRANCHISEE concerning the subject matters hereof and
supersedes all prior and contemporaneous oral and written agreements and
understanding. FRANCHISEE understands and accepts the terms and conditions
contained therein as being reasonably necessary to maintain Franchisor’s marks.
B. Both parties acknowledge that this contract cancels and supersedes all
prior Contract between the parties thereto. No amendments, change or variation
from this Contract shall be binding to either party unless through a mutual
agreement by the parties and executed in writing.
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In Witness Whereof, the parties hereunto affixed their signatures on the date and
place above written.
By: By:
____________________ ________________________
______________________ ________________________
ACKNOWLEDGEMENT
Known to me and to me known to be the same persons who executed the following instrument
and acknowledged to me that the same is their own free and voluntary act and deed and that they
are authorized by company/entity they represent.
DOC.NO. ______;
PAGE NO.______;
BOOK NO._____;
SERIES OF 2017
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