Franchise agreement
This agreement is hereby made and entered into agreement on this day of-------------
between:-
1) __________having its franchise development division at; add:-office no.
____________________________
The franchisor
And
2) ----------------------------------- having its shoppe at
----------------------------------- ----------------------------------- ………………
The franchisee
Whereas, franchisor is originator and creator of _________ brand,
subsequently, known as the franchise (including specific design, sings, and
color combination, planning, inventory and schedule of business policies and
standards i.e. Franchise system)
Whereas, the ________ brand is a trademark and has a copyright over it,
registered in ______ , trade mark for goods or services (other than a
collective mark or a certification trade mark ) in the register section
____________ of the trade marks act, 1999 in the territory of India.
Whereas, franchisor has developed, the use, and continue to use and
control the usage of proprietary interest, trademark, copyrights, service
marks, and trade names in connection with the franchise and business
purpose of thereof including ___________ which is registered trademark and
copyright.
Whereas, franchisee desires to acquire/adopt and the use of the franchise,
and trademark and service names in conduct of a business at a specific
location, under the supervision of and in accordance with the service
standards approved by the franchisor.
Whereas, the franchisee, understands the importance of franchisor’s high
and uniform standards of quality, appearance and service. To the value of the
franchise and the necessity of opening and conducting franchise operations in
conformity with the franchise and in accordance with franchisor’s standards
and specifications.
At, national level to establish uniformity in business practices
__________have formed ___________brand. By which franchisee can do the
business on given quality and standard norms. With a huge brand and its
spread, franchisee will create business at any preferred location. Thus, giving
permission through this agreement to use its logo on every material of
business. To every franchisee ____________ will provide primary trainings,
guidance, by using our brand name do your business is the essential
impression of this agreement.
Now thereof, in consideration of mutual covenants set forth below, franchisor
and franchisee agree as follow:-
Terms
1 In relation to coffee, tea, snacks, milk shakes, lassi, cold drinks,
juices, variety of such food items the business shall be run under the
brand name of ____________________, for fulfillment of such,
franchisee has to buy raw material from local market following the
health and food safety and hygienic standards so to maintain the
quality of the any such item. Franchisee has to use appropriate
processing methods to make such food items so to deliver healthy and
quality to customers on at franchisee level.
2 ____________ is a national level renowned brand promoting
uniformity in specification and standards in this business practices.
Only to use its glamour and public awareness this brand name is
given through franchise agreement, but, to gain/achieve sufficient
customer, maintain quality of raw materials, shoppe’s maintenance is
not in concerns with the franchisor , hence franchisor is not relate or
responsible for any shoppe for any production, supplies, legal issues,
customer complaints etc.
3 franchisee is entitled to create/ design shoppe, print, publish
stationary of franchise in any medium , of any size or designing but
cannot modified, altered or dimensions of ______________ a brand
logo in any way manner. This is agreed by franchisee.
4 franchisee/ shoppe owner is responsible and has to gain government,
non-government or local permissions , food and drug license, shop act
etc. permissions. As well as liable to pay all types of taxes or relevant
charges of government/ semi government/ service tax/ sales tax /
GST/ every other taxes for the franchisee. All laws and regulations has
to be followed and regularized is the utmost requirement of franchisee
business.
5 ___________ is not responsible for any permissions, production,
materials or not in any way guarantor of shoppe’s business, profit and
loses.
6 the franchise has to submit settled fees according to free structure
which is a non refundable in any scenario. In relation to this
___________ is not entitled any legal proceedings, which is agreed by
franchisee.
7 franchise permission and agreement will stand dissolve and cancelled
if any complaint or issue occurred on the shoppe or in relation ,
thereafter franchise is entitled to run business anywhere. Franchisor is
not liable to do further communication with franchisee, thereafter
franchisee is restricted to use of franchisors brand name any where.
This is agreed by franchisee.
Fees structure:
A) franchisee has paid after appropriate application bellowed amount this
fee which is applicable for and only one franchise or shoppe.
B) franchisee has agreed to pay rs.--------------------in words (.
…………………..)For…… …………………shoppe type as a franchisee cost.
If franchisee is unable to pay above mentioned amount the franchisor is
entitled to take 25% per month from total profit . Further, for any kind of
losses for any grounds franchisor is not liable or responsible which is
agreed by franchisee/ shoppe owner, franchise cost is non refundable
which is ultimately held as a brand cost
C) above mentioned franchise fee is subjected for renewal fee, which is
10%of total franchise cost paid by the franchisee. If renewal is not done
within the given period i.e. Prior to one month before completion of one
year , then this agreement and all terms and condition of it will stand
terminated, franchisee has to apply again for the new procedures.
8 ___________ has reserved the rights of visit/ inspection/ checking
without the prior permission of franchisee/ shoppe owner in working
hour and if it is found in that process that there is a violation of
standards norms and terms of this agreement then franchisor has
right to take appropriate action immediately.
9 Term: the term of the franchisee agreement will be __ years from
the first date the franchisor opens to serve the general public.
10 Every dispute or difference arising between the parties to the present
agreement as to the interpretation, operation, or effect of any clause
in the franchisee agreement which cannot be mutually resolved, shall
be referred to the arbitration of ________________(name of the
Arbitrator) failing him, to any other arbitrator chosen by the parties in
writing. The decision of such an arbitrator shall be binding on the
parties to the agreement. Subject as aforesaid the Arbitration and
Conciliation Act, 1996 and the rules made thereunder shall apply to
the arbitration proceedings under this clause.
11 force majeure: neither party shall be responsible or liable for or
deemed in breach hereof bec ause of any delay or failure in the
performance of its obligations hereunder (except for obligations to
pay money due prior to occurrence of force majeure events under this
agreement) or failure to meet milestone dates due to any event or
circumstance (a force majeure event) beyond the reasonable control
of the party experiencing such delay or failure, including the
occurrence of the following:
(a) acts of god;
(b) typhoons, floods, lightening, cyclones, hurricanes, draught, famine,
epidemic, or other natural calamities;
(c) acts of war or civil unrest;
(d) any requirement, action or omission to act pursuant to any judgment
or order of any court or judicial authority
(e) earthquakes, explosions. Both parties have understood the terms and
conditions of this agreement therefore have signed in the presence of
two witnesses herein.
Franchisor…………………………… franchisee………………………………