(DRAFT) Franchise Agreement

FRANCHISE AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This agreement made and executed by and between:
__________________________________________________a Corporation existing

under Philippines laws with principal office at (ADDRESS), hereinafter referred to as the
FIRST PARTY.
-and-
MR./MS.__________________________________, a resident of the Philippines, of legal

age, with principal address at _______________________________ hereinafter referred
to as the SECOND PARTY.
WHEREAS, the FIRST PARTY is a duly organized business entity under the domestic
laws of the Republic of the Philippines (BUSINESS DETAILS).
WHEREAS, the SECOND PARTY is (INSERT DETAILS, IF APPLICABLE).
WHEREAS, the FIRST PARTY hereby agrees to enter into a FRANCHISE Agreement
with the SECOND PARTY in the settings of a franchise outlet particularly describe as
follows
Franchise:
________________________________________________________________________
________________________________________________________________________
According to the preferred area of the SECOND PARTY subject to the availability of the
commercial areas, without prejudice to any proposal by the FIRST PARTY deemed best
for the SECOND PARTY’S interest;
NOW, THEREFORE, for and in consideration of the foregoing premises, the parties
have agreed to strictly comply with the following terms and conditions, to wit:
The FIRST PARTY hereby awards the Franchise Rights to the SECOND PARTY
commencing on (DATE OR ON THE SIGNING THEREOF).
I. FRANCHISE FEE. The Franchise Fee shall be (INSERT AMOUNT) for the
establishment and operation of one (1) Franchise outlet. Further, Franchise Fee shall form
and part of Business Consultation effective form signing of this contract. FRANCHISE
FEE IS NON-REFUNDABLE.
II. DURATION. This agreement shall be effective for a period of (INSERT PERIOD).
The commencement of the __________ (_______) year period shall be reckoned from
the date of opening or upon delivery by mail. Upon signing of the Franchise outlet. The
Franchise Agreement shall be RENEWABLE WITH LESS (50%) FIFTY PERCENT
FRANCHISE FEE BASED ON THE PREVAILING MARKET VALUE.
III. EXCLUSIVITY OF FRANCHISE LOCATION. The FIRST PARTY shall not

set-up another Franchise outlet within the __________ Meter (__________) radius of the
SECOND PARTY’S designated location. Exemptions to this are outlets located within
buildings, schools and malls.
IV. PROVISIONS
The FIRST PARTY shall provide the following:
The SECOND PARTY shall provide the following:

a.1. Needed personnel;
a.2 Store Space;
a.3 All necessary equipment not included in the Franchise Fee.
a.4 __________
V. GROSS REVENUE SHARING. Cross revenue sharing shall be collected and

sharing will be as follows: (IF THERE IS ROYALTY FEE)
All collected royalty fees shall be deposited by the SECOND PARTY every 1st Monday
of the Month or to be collected by the designated Franchise Officer of the FIRST PARTY
upon the latter’s option:
______% shall be given to the FIRST PARTY but no less than One thousand Five
Hundred Pesos (P 1,500.00) to serve as Royalty Fee whichever is higher.
VI. EXCLUSIVITY CLAUSE. The SECOND PARTY agrees that all products/ services
and other such products services bearing the FIRST PARTY or its accredited suppliers
VII. USE OF NAME AND/OR SYSTEM. During the effectivity of this Franchise
agreement, the SECOND PARTY can use the said franchise name/s, business system and
engage in all business transaction related to the products and services carried by the
FIRST PARTY.
VIII. TRANSFER OF TECHNOLOGY. The FIRST PARTY shall keep abreast the
SECOND PARTY ON THE CONTINOUS DEVELOPMENT of Products or Services
and transfer thereof, including product development, for the benefit of the SECOND
PARTY. Upon signing of this agreement, it is understood that trade secrets and business
system have been transferred to the SECOND PARTY by way of orientations and receipt
of a copy of Business Manual of Orientations for this purpose.
VIX. MARKETING CONSULTATION. Formulation of a local marketing plan, if

applicable.
VX. INSURANCE. The SECOND PARTY shall produce comprehensive fire coverage
for the equipment and all other parts thereof.
VXI. SUPPLIES. All supplies or direct material and/or additional equipment needed by
the SECOND PARTY can only be bought from the FIRST PARTY or its accredited
suppliers, upon due notice to FIRST PARTY.
VXII. RIGHT OF FIRST OPTION. The SECOND PARTY shall be given the right of
first option to select location of another franchise in the same location.
VXIII. TRANSFERABILITY OF FRANCHISE. The SECOND PARTY may assign

or transfer the franchise provided the transferee possesses all the qualifications set by the
FIRST PARTY. This right shall be exercise by the FIRST PARTY before termination of
the contract expiration of Franchise Agreement.
a. transfer of location
b. transfer of rights
VXIV. MAINTENANCE CLAUSE. The SECOND PARTY shall be responsible to

maintain its outlet in accordance to the FIRST PARTY’S standard of operations.
SECOND PARTY shall be responsible for all modifications, upgraded and maintenance
needed by the outlet based upon the FIRST PARTY/S recommendation.
VXV. TERMINATION OF AGREEMENT. The Franchise Agreement may be

terminated only after _____ (______) years of operation. The FIRST PARTY has the sole
authority to terminate the agreement even on the earlier date. The right to the FIRST
PARTY to terminate the agreement may arise only if the SECOND PARTY violates any
or all standard operating procedures set forth on this contract, in particular payment of
royalty fees or other accounts due to the former. The termination shall be done after thirty
(30) days notice of termination. If the SECOND PARTY wishes to terminate this
agreement prior to the franchise period, he/she shall be charge half (1/2) of the amount of
the franchise fees unless the SECOND PARTY exercised his option under paragraph 15
which is a mandatory requirement before any termination be undertaken.
VXVI. POST-CONTRACT CLAUSE. Within three (3) years after the expiration of the
term of this agreement, the SECOND PARTY undertakes not to engage in similar
business of the FIRST PARTY.
VXVII. VENUE. Any or all action or actions arising or in connection with the foregoing
agreement shall be filled exclusively at the proper courts of General Santos City.
VXVIII. OTHER MATTERS. All other matters not covered by this agreement shall be
subject to the agreement in writing by the parties.
IN WITNESS WHEREOF, the parties have hereunto signed this instrument this
____day of ___________________20__.
By: By:
___________________________ _________________________________
Franchise
___________________________
Franchise
Signed in the Presence of :
__________________________ _________________________________
WITNESS WITNESS
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)

CITY OF GENERAL SANTOS ) S.S
x------------------------x
BEFORE ME this ____day of __________, 20____, personally appeared
Name CTC # Place Place

_________________ _________________ _________________ _________________
_________________ _________________ _________________ _________________
_________________ _________________ _________________ _________________
Know to me to be the same persons who executed the foregoing instrument, and they acknowledge to
me that the same is their own free and voluntary act and deed.

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FRANCHISE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This agreement made and executed by and between:

__________________________________________________a Corporation existing

MR./MS.__________________________________, a resident of the Philippines, of legal

WHEREAS, the SECOND PARTY is (INSERT DETAILS, IF APPLICABLE).

III. EXCLUSIVITY OF FRANCHISE LOCATION. The FIRST PARTY shall not

The SECOND PARTY shall provide the following:

V. GROSS REVENUE SHARING. Cross revenue sharing shall be collected and

VIX. MARKETING CONSULTATION. Formulation of a local marketing plan, if

VXIII. TRANSFERABILITY OF FRANCHISE. The SECOND PARTY may assign

VXIV. MAINTENANCE CLAUSE. The SECOND PARTY shall be responsible to

VXV. TERMINATION OF AGREEMENT. The Franchise Agreement may be

Signed in the Presence of :

REPUBLIC OF THE PHILIPPINES)

BEFORE ME this day of __, 20, personally appeared

Name CTC # Place Place

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