The Franchisor Franchisee 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 comply with specific Belgian legal requirements, particularly Book X of the Economic Law Code, which mandates detailed pre-contractual disclosure and regulates franchise relationships. The document encompasses comprehensive provisions for business operations, including intellectual property rights, quality standards, territorial rights, fees, and operational requirements. It's essential for businesses expanding through franchising in Belgium and must account for both national and EU regulations regarding competition, commercial practices, and franchise operations. The agreement serves as the foundational document governing the entire franchise relationship and typically includes detailed schedules and appendices covering operational specifics.
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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 concept
3. Definitions: Detailed definitions of key 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 franchise fee, ongoing royalties, and payment terms
7. Franchisor's Obligations: Training, support, marketing assistance, and other obligations of the franchisor
8. Franchisee's Obligations: Operating standards, compliance requirements, and other franchisee duties
9. Intellectual Property Rights: Usage of trademarks, patents, and other IP owned by the franchisor
10. Operating Manual: Reference to and compliance with the franchise operating manual
11. Marketing and Advertising: Marketing obligations, fees, and coordination of advertising efforts
12. Quality Control: Standards, inspections, and compliance requirements
13. Financial Records: Accounting requirements, reporting obligations, and audit rights
14. Confidentiality: Protection of confidential information and trade secrets
15. Non-Competition: Restrictions during and after the franchise relationship
16. Transfer and Assignment: Conditions for transfer of franchise rights
17. Termination: Grounds for termination and termination procedures
18. Post-Termination Obligations: Obligations of parties after agreement ends
19. Governing Law and Jurisdiction: Application of Belgian law and dispute resolution procedures
1. Development Rights: Used when granting rights to develop multiple franchise units
2. E-commerce Rights: Include when online sales are part of the franchise system
3. International Operations: Required for franchises operating across multiple countries
4. Supply Chain Requirements: Include when specific supplier relationships are mandatory
5. Property Lease Provisions: Used when franchisor is involved in property leasing
6. Equipment Leasing: Include when franchisor provides equipment to franchisee
7. Training Program Fees: Used when additional training programs are offered
8. Sub-Franchising Rights: Include when sub-franchising is permitted
9. Right of First Refusal: Used when franchisor wants priority rights to purchase franchise unit
1. Schedule 1 - Territory Description: Detailed description and/or maps of the franchise territory
2. Schedule 2 - Initial Fee Structure: Breakdown of all initial fees and payment terms
3. Schedule 3 - Ongoing Fees: Details of royalties, marketing contributions, and other ongoing fees
4. Schedule 4 - Initial Training Program: Details of mandatory initial training requirements
5. Schedule 5 - Approved Suppliers: List of approved suppliers and products
6. Schedule 6 - Brand Standards: Detailed brand guidelines and standards
7. Schedule 7 - Required Equipment: List of required equipment and specifications
8. Schedule 8 - Intellectual Property: List of registered trademarks and other IP
9. Schedule 9 - Standard Operating Procedures: Key operational requirements and procedures
10. Schedule 10 - Pre-Opening Requirements: Checklist of requirements before opening
11. Appendix A - Pre-Contractual Information Document: Mandatory disclosure document under Belgian law
12. Appendix B - Form of Personal Guarantee: Standard form for personal guarantees if required
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