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Exclusive Franchise Agreement Template for Philippines

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Key Requirements PROMPT example:

Exclusive Franchise Agreement

"I need an Exclusive Franchise Agreement for my growing Filipino restaurant chain, planning to grant exclusive territorial rights for Metro Manila to an experienced restaurateur, with operations starting March 2025 and including provisions for opening 5 locations within 3 years."

Document background
The Exclusive Franchise Agreement is a crucial document used when a business (franchisor) wishes to grant exclusive rights to another party (franchisee) to operate their business model within a defined territory in the Philippines. This agreement must comply with specific Philippine regulations, particularly DTI Administrative Order No. 8, Series of 2002, and the Philippine Competition Act. The document is essential for businesses expanding through franchising while maintaining control over their brand and operations. It includes comprehensive provisions covering intellectual property rights, operational standards, territory definitions, fee structures, and quality control measures. The agreement's exclusive nature means it must be carefully drafted to avoid anti-competitive practices while protecting both parties' interests and ensuring compliance with Philippine franchise and competition laws.
Suggested Sections

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 purpose of the arrangement

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

4. Grant of Franchise: Explicit grant of exclusive franchise rights and territory definition

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

6. Franchise Fees and Payments: Initial franchise fee, recurring royalties, and other financial obligations

7. Franchisor's Obligations: Support, training, and assistance to be provided by the franchisor

8. Franchisee's Obligations: Operating standards, compliance requirements, and performance obligations

9. Intellectual Property Rights: Usage of trademarks, patents, and other IP assets

10. Quality Control: Standards, inspections, and maintenance of quality requirements

11. Confidentiality: Protection of trade secrets and confidential information

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

13. Marketing and Advertising: Marketing obligations, advertising fees, and promotional requirements

14. Records and Reporting: Financial reporting requirements and record-keeping obligations

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

16. Termination: Grounds for termination and procedures

17. Post-Termination Obligations: Obligations of parties after agreement ends

18. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms

19. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Development Schedule: Used when the franchise agreement includes obligations to open multiple locations over time

2. E-commerce Rights: Include when online sales channels are part of the franchise arrangement

3. International Operations: Required when the franchise may operate across international borders

4. Sub-Franchising Rights: Include if the franchisee has the right to grant sub-franchises

5. Equipment Leasing: Include when the franchisor provides equipment under lease arrangements

6. Real Estate Requirements: Used when specific location requirements or real estate arrangements are necessary

7. Insurance Requirements: Detailed section on insurance when the franchise operation has specific risk factors

8. Environmental Compliance: Include for franchises involving environmental considerations or hazardous materials

Suggested Schedules

1. Schedule A - Territory Description: Detailed description and/or maps of the exclusive territory

2. Schedule B - Initial Franchise Fee and Royalty Structure: Detailed breakdown of all fees and payment terms

3. Schedule C - Operations Manual Table of Contents: Overview of the operations manual contents (full manual provided separately)

4. Schedule D - Initial Training Program: Details of required initial training and support

5. Schedule E - Approved Suppliers: List of approved suppliers and purchasing requirements

6. Schedule F - Standard Equipment and Inventory Requirements: Detailed lists of required equipment and initial inventory

7. Schedule G - Intellectual Property: Details of all trademarks, patents, and other IP being licensed

8. Schedule H - Form of Confidentiality Agreement: Standard confidentiality agreement for employees

9. Schedule I - Technical Specifications: Technical requirements for premises, equipment, and systems

10. Schedule J - Marketing Guidelines: Detailed marketing and branding requirements

Authors

Alex Denne

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

Relevant legal definitions






















































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Relevant Industries

Food and Beverage

Retail

Education and Training

Healthcare Services

Automotive Services

Real Estate

Hospitality

Personal Services

Professional Services

Technology and Software

Fashion and Apparel

Entertainment and Recreation

Beauty and Wellness

Convenience Stores

Quick Service Restaurants

Relevant Teams

Legal

Operations

Business Development

Compliance

Commercial

Brand Management

Finance

Corporate Secretariat

Risk Management

Franchise Development

Contract Administration

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Chief Operating Officer

Franchise Development Manager

Legal Counsel

Business Development Director

Operations Director

Compliance Officer

Commercial Director

Brand Manager

Territory Manager

Franchise Operations Manager

Contract Administrator

Legal Director

Business Owner

Managing Director

Franchise Sales Manager

Corporate Secretary

Industries








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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