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The Franchise Letter of Intent (LOI) is a crucial preliminary document used in the early stages of franchise negotiations in Nigeria. It serves as a roadmap for future discussions and demonstrates serious intent from both parties while maintaining flexibility before final commitments. The document typically includes proposed business terms, confidentiality provisions, exclusivity periods, and due diligence requirements, all within the context of Nigerian commercial law. While mostly non-binding, certain provisions like confidentiality and exclusivity are typically enforceable. This document is particularly important in the Nigerian business environment where formal franchise legislation is still evolving, and it helps establish clear expectations and timelines for both parties while protecting their interests during negotiations.

1. Date and Parties: Identification of the potential franchisor and franchisee, including full legal names and addresses

2. Intent Statement: Clear statement that this is a letter of intent regarding a potential franchise relationship

3. Business Description: Brief description of the franchisor's business and the franchise concept

4. Proposed Terms: Key business terms including territory, fees, and general obligations

5. Due Diligence: Overview of the due diligence process and information to be exchanged

6. Timeline: Proposed schedule for negotiations and completion of the franchise agreement

7. Confidentiality: Statement regarding the confidential nature of discussions and information shared

8. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions

9. Exclusivity: Any exclusive negotiation period if applicable

10. Expiration: When the LOI expires if no definitive agreement is reached

11. Governing Law: Statement that the LOI is governed by Nigerian law

12. Signature Block: Space for both parties to sign and date the letter