Real Estate Franchise Agreement Template for Philippines

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Key Requirements PROMPT example:

Real Estate Franchise Agreement

"I need a Real Estate Franchise Agreement for my Philippine real estate company to expand operations through franchising in Metro Manila, with specific provisions for high-end residential property sales and a requirement for franchisees to maintain at least 5 licensed real estate agents."

Document background
The Real Estate Franchise Agreement serves as the foundational document for establishing and governing a franchise relationship in the Philippine real estate sector. This agreement is essential when a successful real estate company wishes to expand its operations through franchising, allowing others to operate under its brand and business system. The document must comply with multiple regulatory frameworks, including the Real Estate Service Act (RESA) of 2009, DTI's franchise regulations, and general business laws. It outlines comprehensive terms covering franchise rights, territorial exclusivity, operational standards, fee structures, training requirements, and professional qualifications. The agreement is particularly important in the Philippine context, where real estate franchising must balance commercial interests with strict regulatory compliance, especially regarding real estate service practitioners' qualifications and consumer protection measures.
Suggested Sections

1. Parties: Identification of Franchisor and Franchisee with complete legal details

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

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Grant of Franchise: Scope of franchise rights, territory definition, and exclusivity terms

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

6. Fees and Payments: Franchise fees, royalties, marketing contributions, and payment terms

7. Franchisor Obligations: Support, training, operations manual, marketing support, and ongoing assistance

8. Franchisee Obligations: Compliance requirements, operational standards, and reporting obligations

9. Real Estate Service Requirements: Compliance with RESA law, broker qualifications, and service standards

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

11. Intellectual Property: Trademark usage, system protection, and confidentiality requirements

12. Marketing and Advertising: Marketing obligations, advertising standards, and fund contributions

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

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

15. Termination: Grounds for termination and termination procedures

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

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

18. General Provisions: Standard boilerplate clauses including governing law, notices, and amendments

Optional Sections

1. Multi-Unit Development: Include when franchisee has rights to develop multiple locations

2. E-Commerce Rights: Include when addressing online real estate operations and platforms

3. International Operations: Include for franchises with potential international expansion

4. Financing Arrangements: Include when franchisor provides or facilitates financing

5. Property Management Services: Include if franchise includes property management services

6. Sub-Franchising Rights: Include if franchisee has rights to sub-franchise

7. Data Privacy and Protection: Include detailed section if handling significant personal data

8. Force Majeure: Include detailed provisions for business interruption circumstances

Suggested Schedules

1. Schedule 1: Territory Description: Detailed description and/or maps of granted territory

2. Schedule 2: Initial Franchise Fee and Royalties: Detailed breakdown of all fees and payment schedules

3. Schedule 3: Initial Training Program: Training requirements and curriculum

4. Schedule 4: Brand Standards Manual: Operating procedures and brand standards summary

5. Schedule 5: Approved Products and Services: List of authorized real estate services and products

6. Schedule 6: Required Insurance: Insurance types and coverage requirements

7. Schedule 7: Initial Investment Summary: Breakdown of required initial investment

8. Appendix A: Trademark Usage Guidelines: Detailed guidelines for brand usage

9. Appendix B: Confidentiality Agreement: Detailed non-disclosure provisions

10. Appendix C: Compliance Certificates: Required regulatory and professional certifications

11. Appendix D: Form of Personal Guarantee: Standard form for personal guarantees if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Development

Property Management

Franchise Business

Professional Services

Business Services

Retail

Commercial Real Estate

Residential Real Estate

Property Investment

Relevant Teams

Legal

Compliance

Operations

Finance

Marketing

Business Development

Training and Development

Brand Management

Quality Assurance

Risk Management

Property Management

Franchise Development

Real Estate Services

Relevant Roles

Chief Executive Officer

Managing Director

Franchise Development Manager

Real Estate Broker

Legal Counsel

Compliance Officer

Operations Director

Business Development Manager

Training Manager

Brand Manager

Property Manager

Real Estate Agent

Franchise Operations Manager

Chief Financial Officer

Marketing Director

Risk Manager

Quality Assurance Manager

Industries
Republic Act No. 9646 (Real Estate Service Act of 2009): Governs real estate service practitioners, including brokers, appraisers, and consultants. Essential for defining qualifications and scope of real estate services in the franchise.
Department of Trade and Industry (DTI) Administrative Order No. 08-2012: Implementing Rules and Regulations for franchise businesses in the Philippines, covering mandatory disclosure requirements and franchise relationship provisions.
Republic Act No. 7394 (Consumer Act of the Philippines): Provides consumer protection guidelines relevant to real estate transactions and services offered through the franchise.
Republic Act No. 8293 (Intellectual Property Code): Governs trademark protection and licensing, crucial for protecting the franchise brand and system.
Republic Act No. 11057 (Personal Property Security Act): Relevant for security interests and collateral arrangements in franchise agreements.
Civil Code of the Philippines: Provides fundamental contract law principles and obligations applicable to franchise agreements and real estate transactions.
Republic Act No. 3765 (Truth in Lending Act): Applicable if the franchise agreement includes financing arrangements or payment terms.
Republic Act No. 10667 (Philippine Competition Act): Ensures compliance with competition laws, particularly regarding territorial restrictions and market division in franchise agreements.
Republic Act No. 11032 (Ease of Doing Business Act): Governs business registration and licensing requirements for franchise operations.
Local Government Code of 1991: Covers local business permits, licenses, and operational requirements for real estate franchise outlets.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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