The Franchise License Agreement is a crucial document used when a business (franchisor) grants another party (franchisee) the right to operate under its business system and brand in Belgium. This agreement must strictly comply with Belgian law, particularly the pre-contractual disclosure requirements under Book X of the Belgian Code of Economic Law, which mandates a 20-day cooling-off period before signing. The document covers comprehensive aspects of the franchise relationship including intellectual property rights, operational standards, financial terms, territory rights, and quality control measures. It's essential for businesses expanding through franchising in Belgium and must incorporate specific provisions regarding competition law, data protection (GDPR compliance), and Belgian commercial practices. The agreement serves as the foundational document governing the entire franchise relationship and must balance the interests of both parties while ensuring compliance with Belgian and EU regulations.
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1. Parties: Identification of the franchisor and franchisee, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, description of the franchise system, and acknowledgment of pre-contractual disclosure
3. Definitions: Comprehensive definitions of terms used throughout the agreement
4. Grant of Franchise: Scope of franchise rights granted, including territory and exclusivity provisions
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Fees and Payments: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms
7. Franchisor Obligations: Support, training, and assistance to be provided by the franchisor
8. Franchisee Obligations: Operational requirements, compliance with standards, and reporting obligations
9. Intellectual Property: License of trademarks, copyrights, and other IP, usage rules and restrictions
10. Quality Control: Standards, inspections, and compliance requirements
11. Confidentiality: Protection of trade secrets and confidential information
12. Non-Competition: During-term and post-term competition restrictions
13. Marketing and Advertising: Marketing requirements, advertising fund, and promotional activities
14. Records and Reporting: Financial records, reporting requirements, and audit rights
15. Transfer and Assignment: Rules for transfer of franchise rights and change of control
16. Termination: Grounds for termination, procedures, and consequences
17. Post-Termination Obligations: De-identification, confidentiality, and other post-termination duties
18. Governing Law and Dispute Resolution: Choice of Belgian law and dispute resolution mechanisms
19. General Provisions: Standard clauses including notices, amendments, and severability
1. Development Rights: Include when franchisee has rights to develop multiple units or sub-franchise
2. E-commerce Rights: Include when online sales or digital platforms are part of the franchise system
3. Equipment and Inventory Requirements: Include when specific equipment or inventory requirements are essential
4. Insurance Requirements: Include detailed insurance provisions when specific coverage is crucial
5. Data Protection: Include detailed GDPR compliance provisions when significant personal data processing is involved
6. Training Program: Include detailed training provisions when extensive initial or ongoing training is required
7. Site Selection and Approval: Include when location selection is crucial and requires franchisor approval
8. Building Design and Layout: Include when specific premises requirements are essential to the franchise
9. Supply Chain Requirements: Include when specific supplier relationships or requirements are mandatory
1. Schedule 1 - Licensed Marks: Detailed list of trademarks, logos, and other intellectual property included in the franchise
2. Schedule 2 - Territory Description: Detailed description or map of the granted territory
3. Schedule 3 - Initial Fee and Royalty Structure: Detailed breakdown of all fees, royalties, and payment terms
4. Schedule 4 - Operations Manual Summary: Overview of the operations manual contents and compliance requirements
5. Schedule 5 - Required Equipment and Inventory: Specifications for required equipment, furniture, and initial inventory
6. Schedule 6 - Training Program: Details of initial and ongoing training requirements and programs
7. Schedule 7 - Minimum Performance Requirements: Performance targets and metrics that franchisee must achieve
8. Schedule 8 - Approved Suppliers: List of approved suppliers and purchasing requirements
9. Schedule 9 - Pre-Opening Requirements: Checklist of requirements to be met before opening
10. Appendix A - Form of Confidentiality Agreement: Standard form for confidentiality agreements with employees
11. Appendix B - Personal Guarantee: Form of personal guarantee if required from franchisee's principals
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