Document background
The Franchise Sale Agreement is a crucial legal document used in the Philippine business environment when a business owner (franchisor) grants another party (franchisee) the right to operate under their established business system and brand. This agreement is particularly important in the Philippine context, where franchising has become a popular business expansion model and is regulated by specific legislation including DTI Administrative Order No. 8 and the Intellectual Property Code. The document must include mandatory disclosures, specify operational standards, outline financial obligations, and protect intellectual property rights while ensuring compliance with local laws. It serves as the foundational document governing the entire franchise relationship, typically used when establishing new franchise locations or transferring existing franchise rights. The agreement must be carefully structured to address both the unique aspects of Philippine business law and the practical requirements of operating a franchise in the local market.
