The Letter Of Intent For Business Franchise serves as a crucial preliminary step in the franchise establishment process within New Zealand's business environment. This document is typically used when a potential franchisee has shown serious interest in acquiring a franchise, but before committing to a full franchise agreement. It outlines key aspects such as proposed territory, basic commercial terms, and the due diligence process, while establishing important preliminary commitments like confidentiality and exclusivity periods. While most provisions are non-binding, it creates a clear framework for negotiations and demonstrates good faith between parties. The document must comply with New Zealand's commercial laws, including the Fair Trading Act 1986 and Contract and Commercial Law Act 2017, and serves as a roadmap for the more detailed franchise agreement to follow.

1. Date and Parties: Identification of the franchisor and potential franchisee, including full legal names and addresses

2. Background: Brief description of the franchisor's business, the franchise system, and the context of the discussions

3. Definitions: Key terms used in the letter that require clear definition

4. Purpose of the Letter: Clear statement that this is a non-binding expression of interest (except for specific binding provisions)

5. Proposed Transaction: Overview of the proposed franchise arrangement, including territory and basic terms

6. Due Diligence: Process and timeline for information exchange and evaluation

7. Timeline: Proposed schedule for negotiations and completion of the formal franchise agreement

8. Confidentiality: Binding provisions regarding the confidentiality of shared information

9. Exclusivity Period: Period during which the franchisor will not negotiate with other parties

10. Next Steps: Clear outline of the immediate actions required from both parties

11. Signatures: Execution block for both parties