Franchise Purchase Agreement Template for Philippines

The Franchise Purchase Agreement is a crucial legal document used when establishing a franchise business relationship in the Philippines. It serves as the foundational contract between a franchisor granting business rights and a franchisee purchasing those rights. This agreement must comply with specific Philippine regulations, including the DTI Administrative Order No. 8, Series of 1998, the Intellectual Property Code, and the Securities Regulation Code. The document comprehensively covers all aspects of the franchise relationship, including initial fees, ongoing royalties, operational requirements, training obligations, quality control standards, and termination conditions. It includes mandatory disclosures required by Philippine law and typically incorporates various schedules and appendices detailing specific operational requirements and standards. The agreement is essential for protecting both parties' interests and ensuring clear understanding of rights, obligations, and performance expectations in the franchise relationship.

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

2. Background: Context of the agreement, brief description of the franchise system, and business concept

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Grant of Franchise: Specific rights being granted, territory limitations, and exclusivity provisions

5. Term and Renewal: Duration of the franchise agreement and conditions for renewal

6. Franchise Fees and Payments: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms

7. Franchisor's Obligations: Training, support, operations manual, ongoing assistance, and other franchisor commitments

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

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

10. Training and Support: Initial and ongoing training requirements, support services provided

11. Marketing and Advertising: Marketing obligations, advertising fund contributions, and local marketing requirements

12. Quality Control: Standards maintenance, inspection rights, and compliance requirements

13. Records and Reporting: Financial record-keeping requirements and reporting obligations

14. Transfer and Assignment: Conditions for transfer of franchise rights and change of ownership

15. Termination: Grounds for termination, notice requirements, and consequences

16. Post-Termination Obligations: Obligations after agreement ends, including non-compete and confidentiality

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

18. Governing Law: Specification of Philippine law as governing law and jurisdiction