The Franchise Broker Agreement is essential when a franchisor wishes to engage professional intermediaries to expand their franchise network in Singapore. This document establishes the legal framework for broker-franchisor relationships, defining commission structures, territorial rights, and performance expectations. It incorporates Singapore's regulatory requirements, including compliance with the Franchising Code of Ethics and relevant business legislation. The agreement typically includes provisions for broker responsibilities, reporting requirements, confidentiality obligations, and dispute resolution mechanisms.
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Key Requirements PROMPT example:
Franchise Broker Agreement
"Need a Franchise Broker Agreement for our Singapore-based F&B chain, appointing an exclusive broker for Southeast Asia with a 5% commission structure, starting March 2025, with specific performance targets for Indonesia and Malaysia."
1. Parties: Identification and details of the Broker and the Franchisor
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used tHRoughout the agreement including relevant legislation references
4. Appointment and Scope: Terms of broker appointment and authorized activities under Singapore law
5. Territory: Geographical area where broker is authorized to operate
6. Commission Structure: Payment terms, rates, and calculation methods in compliance with local regulations
7. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity and authority
8. Obligations of the Broker: Detailed responsibilities and duties of the broker including compliance requirements
9. Obligations of the Franchisor: Detailed responsibilities and duties of the franchisor
10. Confidentiality: Protection of confidential information and trade secrets in accordance with PDPA
11. Term and Termination: Duration of agreement and conditions for termination
12. Dispute Resolution: Process for resolving disputes under Singapore law
13. General Provisions: Standard legal provisions including governing law, notices, and amendments
1. Training Requirements: Specific training obligations and certification requirements for the broker
2. Marketing Cooperation: Terms governing joint marketing initiatives and brand guidelines
3. Performance Targets: Specific performance metrics and minimum requirements
4. Insurance Requirements: Specific insurance coverage requirements for the broker
5. Non-Compete Provisions: Restrictions on competing activities during and after the agreement
1. Schedule 1 - Commission Schedule: Detailed breakdown of commission rates, calculations, and payment terms
2. Schedule 2 - Territory Map: Visual representation and detailed description of authorized territory
3. Schedule 3 - Required Documentation: List of documents needed for franchise transactions and compliance
4. Schedule 4 - Standard Operating Procedures: Detailed processes for broker operations and compliance requirements
5. Schedule 5 - Compliance Checklist: List of regulatory requirements and compliance measures under Singapore law
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