Direct Franchise Agreement Template for Singapore

A comprehensive legal agreement governed by Singapore law that establishes a direct franchising relationship between a franchisor and franchisee. The agreement outlines the grant of franchise rights, operational requirements, intellectual property usage, financial terms, and ongoing obligations of both parties. It incorporates Singapore's regulatory requirements, including compliance with the Competition Act, Trade Marks Act, and Personal Data Protection Act.

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What is a Direct Franchise Agreement?

The Direct Franchise Agreement is the primary contract used when establishing a franchise relationship in Singapore. It's essential for businesses expanding tHRough franchising, providing a comprehensive framework for the relationship between franchisor and franchisee. The agreement covers all aspects of the franchise operation, including brand usage, operational standards, fees, and territory rights. Under Singapore law, while franchise registration isn't mandatory, the agreement must comply with various regulations including competition law, intellectual property protection, and data privacy requirements. This document is crucial for protecting both parties' interests and ensuring clear understanding of rights and obligations.

What sections should be included in a Direct Franchise Agreement?

1. Parties: Identification and details of the franchisor and franchisee

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

3. Definitions: Key terms used tHRoughout the agreement

4. Grant of Franchise: Terms of franchise rights and territory

5. Intellectual Property Rights: Usage of trademarks, copyrights, and system

6. Fees and Payments: Initial fees, royalties, and payment terms

7. Obligations of Franchisor: Support, training, and ongoing assistance

8. Obligations of Franchisee: Operational requirements and compliance

9. Term and Renewal: Duration and renewal conditions

10. Termination: Grounds and procedures for termination

What sections are optional to include in a Direct Franchise Agreement?

1. Development Schedule: Special provisions for multi-unit franchises with scheduled openings - used when agreement includes multiple unit developments

2. International Operations: Special provisions for international franchising - used for cross-border franchise operations

3. Online Operations: E-commerce and digital presence requirements - used when online operations are part of franchise system

What schedules should be included in a Direct Franchise Agreement?

1. Operations Manual Summary: Overview of franchise system operations

2. Territory Map: Defined geographic territory for franchise operations

3. Initial Investment Schedule: Breakdown of required initial investments

4. Training Program: Details of required training programs

5. Brand Standards: Visual identity and brand usage guidelines

6. Equipment and Inventory Requirements: Required equipment and inventory specifications

7. Approved Suppliers List: List of approved suppliers and vendors

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

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Franchise Agreement

Cost

Free to use

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