The Sub Franchise Agreement is utilized when a master franchisee in Singapore wishes to expand the franchise network by granting operational rights to other parties. This document establishes the legal framework for the sub-franchise relationship, ensuring compliance with both the master franchise system and Singapore's regulatory requirements. It covers essential aspects such as territorial rights, operational standards, fee structures, and brand protection measures, while adhering to Singapore's business and franchise regulations.
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Key Requirements PROMPT example:
Sub Franchise Agreement
"Need a Sub Franchise Agreement for my Singapore-based bubble tea chain, granting rights to operate tHRee locations in the Central Business District to an experienced F&B operator, with operations to commence in March 2025."
1. Parties: Identification of the Sub-Franchisor and Sub-Franchisee, including full legal names and registered addresses
2. Background: Context of the agreement, including reference to the Master Franchise Agreement and authority to grant sub-franchises
3. Definitions: Key terms used tHRoughout the agreement, including those inherited from the Master Franchise Agreement
4. Grant of Sub-Franchise: Specific rights being granted, territory limitations, and term of the sub-franchise
5. Intellectual Property Rights: Terms of IP license, usage restrictions, and protection obligations
6. Fees and Payments: Initial fees, ongoing royalties, advertising contributions, and payment terms
7. Operations and Standards: Operational requirements, quality standards, and compliance with manual
8. Training and Support: Initial and ongoing training requirements, support services provided
9. Term and Termination: Duration, renewal conditions, and termination circumstances
1. Development Schedule: Required when multiple units are to be developed over time - applicable for multi-unit sub-franchise arrangements
2. Local Adaptation: Modifications to standard system for local market - applicable when significant local market adaptations are required
3. Supply Chain Requirements: Specific supplier arrangements and requirements - applicable when specific supplier relationships are crucial
1. Territory Map: Detailed definition of the granted territory
2. Fee Schedule: Detailed breakdown of all fees and payment structures
3. Operations Manual Summary: Key operational requirements and standards
4. Approved Suppliers List: List of authorized suppliers and products
5. Training Program: Detailed training requirements and schedule
6. Brand Standards: Specific requirements for maintaining brand consistency
7. Required Insurance: Details of maNDAtory insurance coverage
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