The Multi Unit Franchise Agreement is a sophisticated legal instrument used when a franchisor grants rights to a franchisee to develop and operate multiple franchise units within defined territories in the Philippines. This agreement is particularly relevant for expanding franchise networks efficiently through experienced operators capable of managing multiple locations. It includes detailed provisions for unit development schedules, territory rights, operational standards, and financial obligations, all conforming to Philippine legal requirements and Department of Trade and Industry regulations. The document is especially important for franchisors seeking rapid market expansion while maintaining brand consistency across multiple locations, and for franchisees looking to secure development rights for multiple units under a single master agreement. The agreement typically serves businesses ranging from retail chains to food service operations, incorporating both local business practices and international franchise standards while ensuring compliance with Philippine franchise and business laws.
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1. Parties: Identification of the franchisor and multi-unit franchisee, including complete legal names and addresses
2. Background: Context of the agreement, description of the franchise system, and basis for multi-unit development
3. Definitions: Comprehensive definitions of terms used throughout the agreement, including specific multi-unit terminology
4. Grant of Rights: Scope of franchise rights, territorial exclusivity, and development rights for multiple units
5. Development Schedule: Timeline and requirements for opening multiple franchise units, including milestone dates
6. Term and Renewal: Duration of the agreement and conditions for renewal of the multi-unit development rights
7. Fees and Payments: Financial terms including development fees, franchise fees for each unit, and ongoing royalties
8. Obligations of the Franchisor: Franchisor's duties including support, training, and assistance for multiple units
9. Obligations of the Franchisee: Multi-unit franchisee's duties, compliance requirements, and operational standards
10. Brand Standards and Quality Control: Requirements for maintaining brand consistency across all units
11. Training and Support: Training requirements for each unit and ongoing support provisions
12. Intellectual Property: Use of trademarks, trade secrets, and other IP across multiple locations
13. Financial Reporting: Requirements for financial records and reporting for all units
14. Transfer and Assignment: Rules regarding the transfer of rights for individual or multiple units
15. Termination: Grounds for termination and the effect on individual units
16. Post-Termination Obligations: Duties and restrictions after agreement termination
17. Governing Law and Dispute Resolution: Applicable Philippine laws and dispute resolution procedures
18. General Provisions: Standard clauses including notices, severability, and entire agreement
1. Right of First Refusal: Optional section granting franchisee priority rights to develop additional territories
2. International Operations: Include if franchisee has rights to develop units in other countries
3. Sub-Franchising Rights: Include if franchisee is granted the right to sub-franchise units
4. Alternative Venue Operations: Include for special venue rights (airports, institutions, etc.)
5. Co-Branding Rights: Include if multiple brands can be operated in the same premises
6. Financing Arrangements: Include if franchisor provides or arranges financing for unit development
7. Development Option for Additional Territory: Include terms for expanding into additional territories
1. Schedule A - Territory Description: Detailed description and maps of granted territories
2. Schedule B - Development Schedule: Specific timelines and locations for unit development
3. Schedule C - Initial Franchise Fees and Royalties: Complete fee structure for all units
4. Schedule D - Approved Locations: List of approved and potential unit locations
5. Schedule E - Training Programs: Details of required training for each unit
6. Schedule F - Operating Manual Table of Contents: Overview of operational requirements
7. Schedule G - Standard Unit Franchise Agreement: Template agreement for individual units
8. Schedule H - Brand Standards: Detailed specifications for unit design and operation
9. Schedule I - Required Equipment and Suppliers: Specifications for approved equipment and suppliers
10. Appendix 1 - Financial Statements Format: Required format for financial reporting
11. Appendix 2 - Insurance Requirements: Detailed insurance requirements for all units
12. Appendix 3 - Confidentiality Agreement: Non-disclosure terms for system information
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