The Franchise Agreement And Franchise Disclosure Document is a crucial legal package required for establishing franchise relationships in Belgium. These documents are governed by Book X of the Belgian Code of Economic Law, which mandates specific pre-contractual information disclosure at least one month before agreement execution. The package serves multiple purposes: the Franchise Agreement defines the ongoing relationship, rights, and obligations between franchisor and franchisee, while the Disclosure Document provides mandatory information about the franchise system, including financial projections, market conditions, and operational requirements. This documentation is essential for both domestic and international franchise operations in Belgium, ensuring compliance with local regulations while protecting both parties' interests. The package typically includes comprehensive operational guidelines, financial terms, brand standards, and territory rights, making it suitable for various business sectors operating under the franchise model.
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1. Parties: Identification of the franchisor and franchisee with full legal details
2. Background: Introduction to the franchise system, business concept, and purpose of the agreement
3. Definitions: Comprehensive definitions of terms used throughout the agreement
4. Grant of Franchise: Scope of franchise rights, territory, and exclusivity provisions
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Franchise Fees: Initial fees, ongoing royalties, and other financial obligations
7. Franchisor's Obligations: Support, training, and ongoing assistance provided by the franchisor
8. Franchisee's Obligations: Operational requirements, compliance with system standards, and reporting obligations
9. Intellectual Property Rights: Use of trademarks, patents, and other IP
10. Marketing and Advertising: Marketing obligations, advertising fees, and promotional requirements
11. Training and Support: Initial and ongoing training requirements
12. Quality Control: Standards, inspections, and compliance requirements
13. Financial Records: Accounting requirements, audits, and reporting obligations
14. Insurance: Required insurance coverage and limits
15. Transfer and Assignment: Conditions for transfer of the franchise
16. Termination: Grounds for termination and procedures
17. Post-Termination Obligations: Obligations after agreement ends
18. Confidentiality: Protection of confidential information and trade secrets
19. Non-Competition: Competition restrictions during and after the agreement
20. Governing Law and Jurisdiction: Belgian law provisions and dispute resolution
21. Disclosure Document Requirements: Mandatory disclosures under Belgian law including financial projections and market analysis
1. Multi-Unit Development: Include when franchisee has rights to develop multiple units
2. E-commerce Rights: Include when online sales are part of the franchise system
3. International Operations: Include for cross-border franchise operations
4. Supply Chain Requirements: Include when specific supplier relationships are mandatory
5. Real Estate Requirements: Include when location selection and premises requirements are critical
6. Social Media Policy: Include when social media presence is significant for the franchise
7. Equipment Leasing: Include when franchisor provides equipment leasing options
8. Language Requirements: Include when operating in multiple Belgian linguistic regions
1. Operations Manual Table of Contents: List of contents of the confidential operations manual
2. Territory Map: Detailed description and/or map of granted territory
3. Initial Investment Schedule: Detailed breakdown of required initial investment
4. Approved Suppliers List: List of approved suppliers and products
5. Training Program: Detailed training schedule and requirements
6. Brand Standards: Specifications for use of trademarks and brand elements
7. Financial Statements: Required financial disclosure documents
8. Form of Confidentiality Agreement: Standard confidentiality agreement for employees
9. Equipment Specifications: Required equipment and technical specifications
10. Insurance Requirements: Detailed insurance coverage requirements
11. Initial Inventory Requirements: List of required opening inventory
12. Marketing Guidelines: Detailed marketing and advertising requirements
13. Compliance Checklist: Checklist for ongoing compliance requirements
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