Sample of the hottest franchise contract

2022-09-22
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The franchise contract is a legal agreement between the franchisor and the licensee, and it is an agreement on the rights and obligations between both parties. What is different from the general contract is that the franchisor will stipulate some mandatory terms in the contract. For these terms, the franchisee has no room for bargaining. However, franchisees cannot relax the review of franchise contracts because many franchisees use contracts to set traps, and franchisees should be careful. The following is the sample of franchise contract provided by us for reference

in recent years, the development trend of franchising in China is becoming more and more popular. Insiders are eager to understand the relevant contents of franchising contracts, so that they can know how to safeguard their legitimate rights and interests when signing franchising contracts. As a franchise contract is a contract concluded by one franchisor and several franchisees respectively, and the franchisor hopes to keep the contracts concluded with different franchisees consistent in form in order to meet the needs of unified operation, generally speaking, the format terms provided by the franchisor are adopted when the franchisor and the franchisee conclude the franchise contract. Next, we will briefly introduce the sample of franchise contract (sample) of an internationally renowned chain enterprise as an example

this is a sample of franchise contracts in the catering industry. The content at the beginning of the sample is a statement of some basic facts, including the basic information of the franchisor and the franchisee, the signing time and place, the general commitment made by the franchisee to the franchisor, and so on. Of course, different contracts have different styles. In order to emphasize the way of dispute resolution, this sample also places the general principle of dispute resolution in the statement of basic facts. The body of the sample is the agreement, with a total of 20 articles

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1. The first article is about the agreement on the first phase of royalties

the royalties of the first phase of the franchise are specifically divided into standard fees, discount fees for the licensee to open additional restaurants, extension fees, tensile strength and yield strength of the alloy are increased, which are store fees, additional fees for the old licensee and the new Licensee to open new stores, transfer fees, etc

2. The second article is about the agreement on the royalties that must be paid regularly during the duration of the contract

royalties paid regularly are generally determined as a certain percentage of sales

3. Article 3 is about the agreement that the franchisor grants certain rights to the franchisee. Such as the right to use the franchisor's management system and operation manual, the right to use the improved technology and operation information in the franchisor's management system, and other uses of the franchisor's brand that are limited to restaurants

4. Article 4 is about the agreement that the franchisor provides some support (such as training, consultation, assistance and guidance) to the franchisee

5. Article 5 stipulates the obligations of the Licensee. There are 15 paragraphs in total, and the contents of each paragraph are as follows:

paragraph 1 stipulates the lease of business premises. The business premises can be leased by the franchisor to the lessor and then sublet to the licensee, or the licensee can lease directly from the lessor. If the former method is adopted, the use of the business premises by the licensee is only related to the rights and obligations of the franchisor, and has nothing to do with the owner. Under the condition that the franchisee is easy to decompose after strictly performing the reheating and irreversible lease contract, if the owner and the franchisor have any dispute arising from the lease contract, resulting in the loss of the franchisee, the franchisee can claim compensation from the franchisor; If the latter method is adopted, the Licensee's use of the business site will only have a certain gap with the owner of the house at the link. If the licensee violates the lease contract and the owner's lawsuit involves the franchisor's brand and causes losses to the franchisor, the franchisor can claim corresponding compensation from the franchisee

paragraph 2 stipulates that the Licensee's business activities shall always comply with the provisions of laws and regulations, go through all necessary formalities and bear the expenses; Comply with the specifications, standards and procedures required and recommended in the operation manual, and make timely adjustments and modifications with the update and improvement of the operation manual, so as to meet the quality control standards of the franchisor; Do not disclose or allow others to copy the contents of the operation manual

paragraph 3 stipulates that the Licensee shall bear all taxes and fees arising from its business activities and insure some insurance items as required by the franchisor

paragraph 4 stipulates that the Licensee shall not directly or indirectly engage in any other same or similar business activities during the duration of the contractual relationship, and the amount of compensation payable in case of violation of this provision

paragraph 5 stipulates the payment method of regular franchise royalties

paragraph 6 stipulates that the Licensee shall report the sales to the franchisor at the agreed time and record the sales and operation in the franchisee's system in the prescribed manner

paragraph 7 stipulates that the franchisor has the right to inspect the operation status of the franchisee at the franchisee's business site and check, review and copy various records of the franchisee without prior notice

Article 8 stipulates punitive measures for the licensee to underreport sales

Article 9 stipulates the payment method of advertising fees. Advertising fee is not a simple problem in franchising. Neither franchisor nor licensee is willing to bear the possible risks of advertising investment. If the franchisor is allowed to bear the advertising fee alone, and there are many franchisees, it is difficult to say whether each franchisee can provide services with quality and quantity without affecting the advertising. Moreover, the amount of advertising fee is very large, so it is bound to be difficult for the franchisor to bear the digital display temperature value alone; If the franchisee is allowed to bear the advertising cost, it is the franchisor's brand that is publicized and its own investment that is paid. It is difficult to say whether it can play the effect of promotion and obtain returns. Sometimes, even because the value of the franchisor's own brand is not high, the advertising investment will become a waste. Therefore, if the franchisee is allowed to bear the advertising cost, they will also have doubts

one of the two measures adopted in this contract is that the franchisor and the licensee agree to set up an advertising fund account, and the licensee withdraws the agreed proportion from the weekly sales as the advertising fee and remits it to the advertising fund account. As for the specific advertising method, the franchisor will negotiate with the advertiser according to the amount on the advertising fund account. In this way, the franchisor and the licensee do not have to prepare a large amount of money for advertising in advance, and the licensee

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