Non Exclusive Franchise Agreement Template for Philippines

This Non-Exclusive Franchise Agreement is designed for use in the Philippine business environment where a business owner (franchisor) wishes to expand their operations through franchising while maintaining the flexibility to appoint multiple franchisees in the same territory. The document is structured to comply with Philippine franchise regulations, particularly those enforced by the Department of Trade and Industry, and includes essential provisions for protecting intellectual property rights, maintaining quality standards, and establishing clear operational guidelines. It's particularly useful for businesses that want to expand rapidly while maintaining control over their brand and system, without being restricted by territorial exclusivity. The agreement includes comprehensive sections on initial fees, royalties, training requirements, operational standards, and termination provisions, all aligned with Philippine law and business practices.

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

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

4. Grant of Franchise: Scope of franchise rights, territory, and non-exclusive nature of the grant

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

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

7. Franchisor's Obligations: Support, training, operations manual, ongoing assistance, and other obligations

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

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

10. Quality Control: Standards, inspections, and compliance requirements

11. Marketing and Advertising: Marketing requirements, contributions, and protocols

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

13. Confidentiality: Protection of confidential information and trade secrets

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

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

16. Termination: Grounds for termination, procedures, and consequences

17. Post-Termination Obligations: Obligations after agreement ends

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

19. General Provisions: Standard clauses including notices, entire agreement, governing law