Dealer Franchise Agreement Template for Philippines

The Dealer Franchise 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 the Philippines. This agreement type is specifically designed to comply with Philippine franchise regulations and commercial laws, including mandatory provisions required by the Department of Trade and Industry. The document comprehensively covers all aspects of the franchise relationship, from initial setup to ongoing operations and eventual termination. It includes detailed sections on intellectual property rights, quality control, territorial rights, fees and payments, operational standards, and compliance requirements specific to the Philippine market. The agreement serves as the foundational document for the franchise relationship, protecting both parties' interests while ensuring compliance with local regulations.

1. Parties: Identification of the franchisor and franchisee with complete legal names and addresses

2. Background: Context of the agreement, brief description of the franchisor's business, and franchise system

3. Definitions: Comprehensive list of defined 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. Fees and Payments: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms

7. Franchisor's Obligations: Support, training, and assistance to be provided by the franchisor

8. Franchisee's Obligations: Operational requirements, compliance with standards, and reporting obligations

9. Intellectual Property Rights: Use of trademarks, trade secrets, and other intellectual property

10. Quality Control: Standards, specifications, and monitoring procedures

11. Marketing and Advertising: Marketing requirements, advertising policies, and cooperative advertising

12. Records and Reporting: Financial records, reporting requirements, and audit rights

13. Transfer and Assignment: Conditions for transfer of franchise rights

14. Termination: Grounds for termination and termination procedures

15. Post-Termination Obligations: Obligations and restrictions after agreement ends

16. Confidentiality: Protection of confidential information and trade secrets

17. Non-Competition: Restrictions during and after the franchise term

18. Dispute Resolution: Process for resolving disputes, including mediation and arbitration

19. Governing Law: Application of Philippine law and jurisdiction

20. General Provisions: Standard contract clauses including force majeure, notices, and amendments