franchise agreement-sample

FranchiseAgreementParties:1.TheFranchisor:2.TheFranchisee:RECITALS:-(A)TheFranchisorhasexpendedsubstantialtimeeffortandmoneyinthedevelopmentandimplementationoftheBusiness(definedbelow)whichisoperatedinaccordancewithadistinctivesystemandplanutilisingandcomprisingcertainproprietarymarks,confidentialinformation,standards,specifications,techniques,identifyingschemesandmaterials,insignia,managementmethodsandstandardoperationalprocedures.(B)TheFranchiseedesirestoobtainthebenefitoftheknowledge,skillandexperienceoftheFranchisorandtherightandfranchisetooperatetheSystem(definedbelow)oftheFranchisoruponthetermsandsubjecttotheconditionshereinafter.(C)TheFranchisorhasestablishedsubstantialreputationandgoodwillintheBusinessandtheFranchiseerecognisesthebenefittobederivedtherefromandacknowledgesthenecessityofconformingtothehighstandardsanduniformspecificationsoftheBusiness.NOWTHISAGREEMENTWITNESSETHASFOLLOWS:-1.INTERPRETATION1.1InthisAgreementthefollowingexpressionshallhavethefollowingmeaningunlessthecontextotherwiserequires:-Businessmeansthefranchisebusinessofoperating[paymentkiosks]andwhichismoreparticularlydescribedinSection1ofSchedule1heretooperatedandconductedundertheProprietaryMarksusingtheSystemandmoreparticularlydescribedintheOperatingManual;EquipmentmeanstheequipmentdescribedinSchedule2;“ExpiryDate”meansthedateoftheexpiryoftheTerm;“InitialFee”meansthesumsetoutandforthepurposemoreparticularlydescribedinClause16hereofpayablebytheFranchiseetotheFranchisorupontheexecutionofthisAgreement;“Interest”meanstherateofinterestof[%]abovetheBaseLendingRateofMaybankBerhadonthedateofdefault;“Franchisee”meansandincludeshis/herestate,heir(s)andpersonalrepresentative(s)andpermitted2assigns;“Franchisor”meansandincludesitssuccessors-in-titleandassignsorifthecontextrequires,anysuccessorappointedinitscapacity;OperatingManual”meansthewrittenspecificationofthemethods,processes,technique,systemandschemesdevisedandcompiledbytheFranchisortobeobservedandimplementedbytheFranchiseeinoperatingtheBusinessandanyamendmentorvariationthereofatanytimehereafternotifiedinwritingbytheFranchisortotheFranchisee;“Products”meanstheproductsidentifiedbytheProprietaryMarks[soldor]providedinthecourseoftheBusinessandmoreparticularlydescribedinSection1oftheSchedule3hereto;“Premises”meansthepremisesapprovedbytheFranchisorinaccordancewiththetermsofthisAgreementatwhichtheFranchiseemayoperatetheBusiness,[clienttoprovideparticularswhethertenancyenteredbyFranchisorortheFranchisee].ProprietaryMarks”meansthepatents,trademarks,tradenames,logosandregistereddesigndetailsofwhicharesetoutinSchedule3heretoandallotherpatents,trademarks,tradenames,logos,designs,symbols,emblems,insignia,fascia,slogans,copyrights,know-how,information,drawings,plansandotheridentifyingmaterialswhetherornotregisteredorcapableofregistrationandallotherproprietaryrightswhatsoeverownedbyoravailabletotheFranchisoradoptedordesignatednoworatanytimehereafterbytheFranchisorforuseinconnectionwiththeSystemandtheBusiness;[Note:TheFranchisorisrequiredtoregisterhistrademarkorservicemarkrelevanttothefranchisebeforeapplyingfortheregistrationofthefranchise,Section24oftheFranchiseAct,1998].RenewalTermmeansthenextdayimmediatelyaftertheExpiryDateandexpiringonthedatespecifiedinSection6ofSchedule1hereto[clienttonotethatSection25oftheFranchiseAct1998providesthatthetermshallnotbelessthan5years];“Services”meanstheservicesidentifiedbytheProprietaryMarks[soldor]providedinthecourseoftheBusinessandmoreparticularlydescribedinSection2oftheSchedule3hereto;SystemmeansthedistinctivebusinessformatandmethoddevelopedandimplementedbytheFranchisorinconnectionwiththeoperationoftheBusinessutilisingandcomprisingtheProprietaryMarksandcertainstandardoperationalprocedures,plans,directions,specifications,methods,managementandadvertisingtechniquesandidentificationschemes,partofwhicharecontainedintheOperatingManual;TermmeanstheperiodcommencingfromthedatespecifiedinSection2ofSchedule1heretoandexpiringonthedatespecifiedinSection3ofSchedule1hereto[clienttonotethatSection25oftheFranchiseAct31998providesthatthetermshallnotbelessthan5years];TerritorymeanstheterritorymoreparticularlydescribedinSection4ofSchedule2inwhichtheFranchiseemayoperatetheBusiness;“ThisAgreement”meansthisFranchiseAgreementdatedmadebetweentheFranchisorandtheFranchiseeandincludesanyvariationsandamendmentswhichmaybemadetheretoatanytimeandfromtimetotime;“WorkingDay”meansaday(otherthanaSaturday,Sundayandpublicholiday)onwhichbanksareopenforbusinessinKualaLumpur.2.APPOINTMENTANDGRANT[Note:AFranchisorisrequiredtoregisterhisfranchisewiththeRegistrarofFranchisesbeforemakeoffertosellthefranchise,Section6oftheFranchiseAct,1998]2.1SubjecttoClause21,theFranchisorherebygrantstotheFranchiseeandtheFranchiseeherebyacceptsfromtheFranchisortherightandlicenceduringtheTermandRenewalTermtooperatetheBusinessintheTerritoryundertheProprietaryMarksinaccordancewiththeSystemuponthetermsandsubjecttotheconditionshereincontained.2.2TherightandlicencegrantedtotheFranchiseeunderClause2.1isstrictlypersonalinnaturetot