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Sub Franchise Agreement
"I need a Sub Franchise Agreement for a Malaysian food and beverage business, where we're granting rights to operate three outlets in Penang to an experienced restaurateur, with operations planned to commence in March 2025."
1. Parties: Identification of the sub-franchisor and sub-franchisee, including full legal names and registration details
2. Background: Context of the agreement, including reference to the master franchise agreement and authority to grant sub-franchises
3. Definitions: Key terms used throughout the agreement, including specific franchise-related terminology
4. Grant of Sub-Franchise: Specific rights granted to the sub-franchisee, including territorial limits and scope of operations
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Fees and Payments: Initial fees, ongoing royalties, and other financial obligations
7. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, trade secrets, and other IP
8. Training and Support: Sub-franchisor's obligations regarding initial and ongoing training and support
9. Operating Standards: Required operational procedures, quality standards, and compliance requirements
10. Marketing and Advertising: Marketing obligations, advertising fees, and promotional requirements
11. Reporting and Audits: Financial reporting requirements and audit rights
12. Confidentiality: Protection of confidential information and trade secrets
13. Transfer and Assignment: Conditions for transfer of the sub-franchise rights
14. Termination: Grounds for termination and termination procedures
15. Post-Termination Obligations: Obligations and restrictions after agreement termination
1. Insurance Requirements: Specific insurance coverage requirements - include if the business type has particular liability risks
2. Supply Chain Obligations: Requirements for purchasing from approved suppliers - include if there are mandatory supply arrangements
3. Employee Training Standards: Detailed employee training requirements - include for service-based franchises
4. Property Requirements: Specific requirements for premises - include for location-based businesses
5. Environmental Compliance: Environmental standards and compliance - include for businesses with environmental impact
6. Digital Presence: Online presence and e-commerce requirements - include for businesses with significant digital operations
1. Schedule 1 - Territory Description: Detailed description of the granted territory including maps and boundaries
2. Schedule 2 - Initial Fees and Ongoing Payments: Detailed breakdown of all financial obligations
3. Schedule 3 - Operating Manual Summary: Key provisions of the operating manual and compliance requirements
4. Schedule 4 - Trademark Usage Guidelines: Specific rules for using the franchise's trademarks and branding
5. Schedule 5 - Initial Training Program: Details of required initial training for the sub-franchisee
6. Schedule 6 - Approved Suppliers: List of approved suppliers and purchasing requirements
7. Schedule 7 - Required Equipment and Inventory: Specifications for required equipment and initial inventory
8. Appendix A - Form of Confidentiality Agreement: Template confidentiality agreement for employees
9. Appendix B - Compliance Checklist: Checklist of operational and regulatory compliance requirements
Authors
Approved Location
Approved Products
Approved Suppliers
Business Day
Commencement Date
Confidential Information
Customer
Franchise
Franchise System
Franchise Territory
Franchise Registry
Intellectual Property Rights
Initial Fee
License
Master Franchise Agreement
Master Franchisor
Operating Manual
Operations Standards
Premises
Proprietary Marks
Renewal Term
Ringgit Malaysia
Royalty Fee
Service Marks
Sub-Franchisor
Sub-Franchisee
System Standards
Term
Territory
Trade Secrets
Training Program
Working Hours
Territory
Term and Renewal
Fees and Payments
Intellectual Property
Training
Quality Control
Operations Standards
Confidentiality
Non-Competition
Marketing
Supply Chain
Audit Rights
Insurance
Compliance
Assignment
Termination
Post-Termination
Dispute Resolution
Force Majeure
Indemnification
Governing Law
Notices
Entire Agreement
Severability
Third Party Rights
Warranties
Data Protection
Record Keeping
Reporting Requirements
Food & Beverage
Retail
Education & Training
Healthcare Services
Hospitality
Personal Services
Automotive Services
Professional Services
Beauty & Wellness
Property Maintenance
Legal
Operations
Finance
Compliance
Business Development
Brand Management
Training & Development
Commercial
Risk Management
Franchise Development Manager
Legal Counsel
Business Development Director
Operations Manager
Compliance Officer
Commercial Director
Chief Executive Officer
Chief Operating Officer
Franchise Relations Manager
Territory Manager
Brand Manager
Training Manager
Finance Director
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