The Franchise Lease Agreement is a specialized contract used in the Philippine business environment when a franchisor wishes to both grant franchise rights and lease premises to a franchisee in a single integrated agreement. This document is particularly relevant in situations where the franchisor owns or controls the property from which the franchise will operate, common in retail and food service operations. The agreement must comply with Philippine franchise regulations, including DTI Administrative Order No. 8, Series of 2002, as well as property leasing laws under the Civil Code of the Philippines. It combines standard franchise elements such as intellectual property rights, operational standards, and royalty payments with traditional lease provisions including rent, maintenance obligations, and property use restrictions. This type of agreement is increasingly common in the Philippine market as businesses seek to maintain brand consistency through control of both operations and premises.
Franchise Lease Agreement for Philippines
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Key Requirements PROMPT example:
Franchise Lease Agreement
"I need a Franchise Lease Agreement for a national coffee shop chain expanding in Manila, where we'll be both the franchisor and property owner, with a 10-year initial term starting March 2025 and specific requirements for maintaining brand consistency in a premium shopping mall location."
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1. Parties: Identification of the Franchisor/Lessor and Franchisee/Lessee, including complete legal names, addresses, and registration details
2. Background: Context of the agreement, brief description of the franchise business, and property to be leased
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of Franchise: Specific rights granted to the franchisee, including territory rights and exclusivity provisions
5. Lease Terms: Details of the property lease including premises description, duration, and permitted use
6. Term and Renewal: Duration of both franchise and lease agreements, conditions and procedures for renewal
7. Fees and Payments: Comprehensive financial terms including franchise fees, royalties, rent, security deposits, and payment schedules
8. Intellectual Property Rights: Terms governing the use of trademarks, trade secrets, and other intellectual property
9. Operating Standards: Required operational procedures, quality standards, and compliance requirements
10. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements
11. Training and Support: Franchisor's obligations regarding initial and ongoing training and support
12. Insurance and Indemnification: Required insurance coverage and indemnification obligations
13. Default and Termination: Grounds for default, remedies, and termination procedures
14. Post-Termination Obligations: Obligations of both parties after agreement termination
15. Governing Law and Dispute Resolution: Applicable law and procedures for resolving disputes
1. Assignment and Transfer: Terms for transferring franchise or lease rights, used when transfers are permitted
2. Non-Competition: Restrictions on competitive activities, included when required by business model
3. Force Majeure: Provisions for unforeseeable circumstances, particularly relevant in light of recent global events
4. Guarantees: Personal or corporate guarantees, included when additional security is required
5. Right of First Refusal: Terms giving franchisee priority rights to adjacent properties or additional territories
6. Building Modifications: Specific terms for property modifications, included for properties requiring significant alterations
7. Environmental Compliance: Environmental obligations and compliance requirements, necessary for certain business types
8. Co-Tenancy: Terms relating to other tenants in the same property, relevant for mall or shopping center locations
1. Property Details: Detailed description of leased premises including floor plans and measurements
2. Equipment and Fixtures: List of provided equipment, fixtures, and furniture
3. Operating Manual Summary: Key points from the franchise operating manual
4. Brand Standards: Detailed specifications for brand compliance including signage and design elements
5. Financial Terms: Detailed breakdown of all financial obligations including calculation methods
6. Training Program: Overview of required training programs and schedules
7. Approved Suppliers: List of approved suppliers and products
8. Service Area Map: Detailed mapping of territory or service area
9. Form of Guarantee: Template for personal or corporate guarantee if required
10. Insurance Requirements: Detailed specifications for required insurance coverage
Authors
Relevant legal definitions
Agreement
Applicable Laws
Approved Products
Approved Suppliers
Brand Standards
Business Day
Commencement Date
Common Areas
Confidential Information
Contract Year
Default
Deposit
Effective Date
Equipment
Force Majeure
Franchise
Franchise Fee
Franchise System
Franchised Business
Gross Sales
Improvements
Initial Term
Intellectual Property Rights
Lease
Leased Premises
License
Operating Manual
Operating Standards
Operations
Permitted Use
Premises
Property
Quality Standards
Renewal Term
Rent
Royalty Fee
Security Deposit
Service Area
System
Term
Territory
Trade Marks
Training Program
Transfer
Utilities
Working Days
Applicable Laws
Approved Products
Approved Suppliers
Brand Standards
Business Day
Commencement Date
Common Areas
Confidential Information
Contract Year
Default
Deposit
Effective Date
Equipment
Force Majeure
Franchise
Franchise Fee
Franchise System
Franchised Business
Gross Sales
Improvements
Initial Term
Intellectual Property Rights
Lease
Leased Premises
License
Operating Manual
Operating Standards
Operations
Permitted Use
Premises
Property
Quality Standards
Renewal Term
Rent
Royalty Fee
Security Deposit
Service Area
System
Term
Territory
Trade Marks
Training Program
Transfer
Utilities
Working Days
Clauses
Parties and Recitals
Definitions
Grant of Franchise
Grant of Lease
Term and Renewal
Fees and Payments
Rent and Other Charges
Security Deposit
Permitted Use
Operating Requirements
Training and Support
Quality Control
Intellectual Property
Confidentiality
Non-Competition
Property Maintenance
Alterations and Improvements
Utilities and Services
Insurance
Assignment and Transfer
Compliance with Laws
Default and Remedies
Termination
Force Majeure
Indemnification
Notices
Governing Law
Dispute Resolution
Entire Agreement
Amendment
Severability
Waiver
Third Party Rights
Counterparts
Good Faith
Representation and Warranties
Environmental Compliance
Health and Safety
Property Access
Security
Record Keeping
Reporting Requirements
Audit Rights
Marketing and Advertising
Territory Rights
Emergency Provisions
Business Continuity
Definitions
Grant of Franchise
Grant of Lease
Term and Renewal
Fees and Payments
Rent and Other Charges
Security Deposit
Permitted Use
Operating Requirements
Training and Support
Quality Control
Intellectual Property
Confidentiality
Non-Competition
Property Maintenance
Alterations and Improvements
Utilities and Services
Insurance
Assignment and Transfer
Compliance with Laws
Default and Remedies
Termination
Force Majeure
Indemnification
Notices
Governing Law
Dispute Resolution
Entire Agreement
Amendment
Severability
Waiver
Third Party Rights
Counterparts
Good Faith
Representation and Warranties
Environmental Compliance
Health and Safety
Property Access
Security
Record Keeping
Reporting Requirements
Audit Rights
Marketing and Advertising
Territory Rights
Emergency Provisions
Business Continuity
Relevant Industries
Retail
Food and Beverage
Hospitality
Service Industry
Education and Training
Healthcare Services
Automotive Services
Real Estate
Fashion and Apparel
Consumer Services
Professional Services
Entertainment and Recreation
Relevant Teams
Legal
Real Estate
Operations
Finance
Compliance
Business Development
Risk Management
Property Management
Commercial
Franchise Development
Asset Management
Contract Administration
Relevant Roles
Franchise Development Manager
Real Estate Manager
Legal Counsel
Business Development Director
Operations Director
Property Manager
Compliance Officer
Chief Financial Officer
Commercial Director
Franchise Operations Manager
Asset Manager
Risk Management Officer
Business Owner
Chief Executive Officer
Leasing Manager
Contract Administrator
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