The Franchise Contract Agreement is a crucial document used when establishing a franchise business relationship in Belgium. It must comply with specific Belgian legal requirements, particularly the pre-contractual disclosure obligations under Book X of the Belgian Code of Economic Law, which requires detailed information to be provided at least one month before signing. The agreement covers all essential aspects of the franchise relationship, including intellectual property rights, operational standards, financial obligations, and territory rights. It's particularly important for businesses expanding through franchising in Belgium and must account for both Belgian national law and EU regulations. The document typically includes comprehensive details about the franchise system, support services, quality control measures, and termination provisions, while ensuring compliance with Belgian competition law and commercial practices.
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1. Parties: Identification and details of the franchisor and franchisee
2. Background: Context of the agreement, including brief description of the franchise system and business
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Grant of Franchise: Scope of franchise rights, territory, and exclusivity terms
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Franchise Fees: Initial franchise fee, ongoing royalties, and payment terms
7. Franchisor Obligations: Support, training, and services provided by the franchisor
8. Franchisee Obligations: Operating standards, compliance requirements, and performance obligations
9. Intellectual Property Rights: Usage of trademarks, patents, and other IP
10. Training and Support: Initial and ongoing training requirements and support services
11. Marketing and Advertising: Marketing obligations, fees, and cooperative advertising programs
12. Quality Control: Standards, inspections, and compliance requirements
13. Confidentiality: Protection of confidential information and trade secrets
14. Non-Competition: Restrictions during and after the agreement term
15. Termination: Grounds for termination and procedures
16. Post-Termination Obligations: Obligations after agreement ends
17. Governing Law and Jurisdiction: Belgian law application and dispute resolution
18. General Provisions: Standard contractual clauses including severability, entire agreement, etc.
1. Development Schedule: Used when franchisee commits to opening multiple units over time
2. E-commerce Rights: Include when online sales are part of the franchise arrangement
3. Equipment Leasing: Required if franchisor leases equipment to franchisee
4. Property Requirements: Include when franchise location must meet specific requirements
5. Supply Chain Obligations: Used when specific supplier relationships are mandatory
6. Sub-Franchising Rights: Include if franchisee has right to sub-franchise
7. International Operations: Required for cross-border franchise operations
8. Data Protection: Detailed GDPR compliance section if personal data processing is significant
1. Operations Manual Table of Contents: List of contents of the confidential operations manual
2. Initial Fee Schedule: Detailed breakdown of all initial fees and payments
3. Approved Suppliers List: List of approved suppliers and products
4. Territory Map: Detailed description and/or map of granted territory
5. Training Program: Details of initial and ongoing training requirements
6. Brand Standards: Specific requirements for brand usage and presentation
7. Equipment Specifications: Required equipment and technical specifications
8. Financial Reporting Forms: Templates for required financial reporting
9. Pre-Opening Checklist: Requirements before franchise location opening
10. Insurance Requirements: Detailed insurance coverage requirements
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