This Non-Exclusive Franchise Agreement is designed for use in the Philippine business environment where a business owner (franchisor) wishes to expand their operations through franchising while maintaining the flexibility to appoint multiple franchisees in the same territory. The document is structured to comply with Philippine franchise regulations, particularly those enforced by the Department of Trade and Industry, and includes essential provisions for protecting intellectual property rights, maintaining quality standards, and establishing clear operational guidelines. It's particularly useful for businesses that want to expand rapidly while maintaining control over their brand and system, without being restricted by territorial exclusivity. The agreement includes comprehensive sections on initial fees, royalties, training requirements, operational standards, and termination provisions, all aligned with Philippine law and business practices.
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1. Parties: Identification of the Franchisor and Franchisee with complete legal names and addresses
2. Background: Context of the agreement, brief description of the franchise system and business
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of Franchise: Scope of franchise rights, territory, and non-exclusive nature of the grant
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Franchise Fees and Payments: Initial franchise fee, royalties, marketing contributions, and payment terms
7. Franchisor's Obligations: Support, training, operations manual, ongoing assistance, and other obligations
8. Franchisee's Obligations: Operational standards, compliance requirements, reporting obligations
9. Intellectual Property Rights: Use of trademarks, trade secrets, and other IP
10. Quality Control: Standards, inspections, and compliance requirements
11. Marketing and Advertising: Marketing requirements, contributions, and protocols
12. Records and Reporting: Financial records, reporting requirements, and audit rights
13. Confidentiality: Protection of confidential information and trade secrets
14. Non-Competition: Restrictions during and after the franchise term
15. Transfer and Assignment: Conditions for transfer of franchise rights
16. Termination: Grounds for termination, procedures, and consequences
17. Post-Termination Obligations: Obligations after agreement ends
18. Dispute Resolution: Process for resolving disputes, including mediation and arbitration
19. General Provisions: Standard clauses including notices, entire agreement, governing law
1. Insurance Requirements: Detailed insurance obligations when specific coverage types are required
2. Equipment and Inventory: For franchises requiring specific equipment or inventory purchases
3. Real Estate Requirements: When location and premises are crucial to the franchise
4. Training Program: Detailed training section when extensive initial or ongoing training is required
5. Social Media and Online Presence: For franchises with significant digital presence requirements
6. Environmental Compliance: For franchises with environmental impact considerations
7. Employee Standards: When specific employee qualifications or training are required
8. Multi-Unit Development: For franchisees with rights to develop multiple units
1. Schedule A - Products and Services: Detailed list of approved products and services
2. Schedule B - Territory Description: Detailed description of the geographic territory
3. Schedule C - Initial Fee Structure: Breakdown of all initial fees and payments
4. Schedule D - Operations Manual Table of Contents: Overview of the operations manual content
5. Schedule E - Initial Training Program: Details of required initial training
6. Schedule F - Approved Suppliers: List of approved suppliers and products
7. Schedule G - Brand Standards: Detailed brand and trademark usage guidelines
8. Schedule H - Initial Equipment and Inventory: Required starting equipment and inventory
9. Appendix 1 - Form of Confidentiality Agreement: Standard confidentiality agreement for employees
10. Appendix 2 - Required Insurance Coverage: Detailed insurance requirements and minimums
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