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Absentee Franchise Agreement
"I need an Absentee Franchise Agreement for a Philippine coffee shop chain where I'll be the overseas investor based in Singapore, with plans to open 3 locations in Manila by March 2025, including specific provisions for a local operations manager with at least 5 years of F&B experience."
1. Parties: Identification of the Franchisor and Franchisee, including complete legal names and addresses
2. Background: Context of the agreement, brief description of the franchise system, and acknowledgment of absentee ownership structure
3. Definitions: Detailed definitions of key terms used throughout the agreement, including specific terms related to absentee ownership
4. Grant of Franchise: Specific rights being granted, territory definitions, and exclusivity terms
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Fees and Payments: Franchise fees, royalties, advertising contributions, and payment terms
7. Franchisor's Obligations: Support, training, and ongoing assistance provided by the franchisor
8. Franchisee's Obligations: Operational requirements, compliance standards, and reporting obligations
9. Operations Manager Requirements: Qualifications, responsibilities, and authority of the designated operations manager running the franchise
10. Training and Support: Initial and ongoing training requirements for operations manager and staff
11. Quality Control: Standards, inspections, and compliance requirements
12. Intellectual Property: Use of trademarks, trade secrets, and other intellectual property
13. Reporting and Audit Rights: Financial reporting requirements and franchisor's audit rights
14. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions
15. Default and Termination: Events of default, cure periods, and termination procedures
16. Post-Termination Obligations: Obligations and restrictions after agreement termination
17. Assignment and Transfer: Conditions for transferring or selling the franchise
18. Governing Law and Dispute Resolution: Choice of law, jurisdiction, and dispute resolution procedures
19. General Provisions: Standard boilerplate clauses including notices, severability, and entire agreement
1. Multiple Unit Rights: Used when franchisee has rights or options to develop additional units
2. International Operations: Include when franchise operates across international borders
3. E-commerce Rights: Include when online sales or digital operations are part of the franchise
4. Development Schedule: Used when agreement includes timeline for developing multiple units
5. Co-Branding Rights: Include when franchisee has rights to operate other brands in the same location
6. Special Territory Rights: Used for unique territorial arrangements or protected territories
7. Financing Terms: Include when franchisor provides or arranges financing
8. Master Franchise Provisions: Used when franchisee has rights to sub-franchise
1. Schedule A - Franchise Location and Territory: Detailed description of approved location and territorial rights
2. Schedule B - Initial Franchise Fee and Royalty Structure: Comprehensive breakdown of all fees and payment schedules
3. Schedule C - Operations Manual Table of Contents: Overview of operations manual contents without disclosing confidential details
4. Schedule D - Initial Equipment and Inventory Requirements: List of required equipment, supplies, and initial inventory
5. Schedule E - Approved Suppliers: List of approved suppliers and proprietary products
6. Schedule F - Training Program: Detailed description of initial and ongoing training programs
7. Schedule G - Standard Operating Procedures: Key operational requirements and standards
8. Schedule H - Advertising Guidelines: Approved advertising formats and requirements
9. Schedule I - Insurance Requirements: Detailed insurance coverage requirements
10. Appendix 1 - Form of Operations Manager Agreement: Standard agreement for hiring and managing operations manager
11. Appendix 2 - Confidentiality Agreement: Required confidentiality terms for all key personnel
12. Appendix 3 - Personal Guaranty: Required personal guarantees from franchisee principals
Authors
Agreement
Approved Location
Approved Products
Approved Suppliers
Business Day
Commencement Date
Confidential Information
Disclosure Document
DTI
Effective Date
Force Majeure
Franchise
Franchise System
Franchise Territory
Franchised Business
Franchise Fee
Franchisor's Marks
Gross Sales
Initial Term
Initial Training
Intellectual Property Rights
Manual
Minimum Performance Requirements
Operations Manager
Operations Standards
Periodic Reports
Permitted Use
Proprietary Information
Quality Standards
Renewal Term
Royalty Fee
System Standards
Term
Territory
Trade Secrets
Training Program
Transfer
Working Capital
Marketing Fund
Marketing Materials
Net Sales
Operating Hours
Performance Standards
Philippine Peso
Premises
Quarterly Reports
Renewal Fee
Required Insurance
Security Deposit
Spouse Consent
Substantial Interest
Technology Systems
Termination Notice
Trade Name
Definitions
Grant of Rights
Term and Renewal
Fees and Payments
Territory Rights
Absentee Ownership Obligations
Operations Management
Training Requirements
Quality Control
Compliance
Intellectual Property
Confidentiality
Non-Competition
Reporting Requirements
Audit Rights
Marketing and Advertising
Insurance
Indemnification
Default and Remedies
Termination
Post-Termination
Transfer and Assignment
Death or Incapacity
Force Majeure
Notices
Dispute Resolution
Governing Law
Entire Agreement
Severability
Amendment
Waiver
Representation and Warranties
Further Assurances
Counterparts
Third Party Rights
Time of Essence
Costs and Expenses
Food and Beverage
Retail
Healthcare Services
Education and Training
Hospitality
Personal Services
Automotive Services
Real Estate Services
Professional Services
Technology Services
Fitness and Wellness
Entertainment
Convenience Stores
Quick Service Restaurants
Legal
Operations
Franchise Development
Business Development
Compliance
Executive Leadership
Commercial
Risk Management
Quality Assurance
Finance
Training and Development
Franchise Development Manager
Legal Counsel
Operations Director
Business Development Manager
Compliance Officer
Chief Executive Officer
Chief Operating Officer
Franchise Operations Manager
Regional Manager
Investment Manager
Business Owner
Franchise Consultant
Commercial Director
Risk Manager
Quality Assurance Manager
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