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Franchise Broker Agreement Template for Philippines

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Key Requirements PROMPT example:

Franchise Broker Agreement

"I need a Franchise Broker Agreement for my restaurant chain in the Philippines, with exclusive rights for the broker in Metro Manila and surrounding areas, including a minimum performance requirement of 10 successful franchisee placements per year starting March 2025."

Document background
The Franchise Broker Agreement is a crucial document for businesses expanding their franchise operations in the Philippines. It is typically used when a franchisor wishes to engage professional intermediaries to facilitate franchise network growth. The agreement must comply with Philippine franchise regulations, particularly DTI Administrative Order No. 8, Series of 2002, and related commercial laws. This document establishes the broker's authority to represent the franchisor, defines territorial rights, outlines commission structures, and sets performance expectations. It includes essential provisions for protecting the franchisor's intellectual property and maintaining brand standards while ensuring the broker can effectively market franchise opportunities. The agreement is particularly important in the Philippine market, where local knowledge and business relationships are crucial for franchise development.
Suggested Sections

1. Parties: Identification of the franchisor and the broker, including complete business details and registration information

2. Background: Context of the agreement, including the franchisor's business and desire to engage a broker to expand their franchise network

3. Definitions: Key terms used throughout the agreement, including 'Franchise Agreement', 'Prospective Franchisee', 'Territory', and 'Commission'

4. Appointment and Scope: Terms of the broker's appointment, whether exclusive or non-exclusive, and detailed scope of authorized services

5. Territory: Geographic area where the broker is authorized to operate and any territorial restrictions

6. Broker's Rights and Obligations: Detailed responsibilities including lead generation, franchisee screening, and compliance with franchise laws

7. Franchisor's Rights and Obligations: Franchisor's commitments including training, support, and information provision to the broker

8. Commission Structure: Detailed compensation terms, commission rates, payment timing, and any performance bonuses

9. Confidentiality: Protection of proprietary information and trade secrets

10. Compliance with Laws: Obligations to comply with Philippine franchise regulations and other applicable laws

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Post-Termination Obligations: Duties and restrictions after the agreement ends

13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution

Optional Sections

1. Performance Targets: Include when specific sales or recruitment targets are required for the broker

2. Training Requirements: Include when the broker must complete specific training programs

3. Marketing and Advertising: Include when the broker has specific marketing responsibilities or restrictions

4. Insurance Requirements: Include when specific insurance coverage is required for the broker

5. Non-Competition: Include when restricting the broker from representing competing franchises

6. Data Protection: Include when handling significant personal or customer data

7. International Operations: Include when the broker may operate across international borders

Suggested Schedules

1. Schedule A - Commission Structure: Detailed breakdown of commission rates, payment terms, and bonus structures

2. Schedule B - Territory Map: Detailed map and description of the broker's authorized territory

3. Schedule C - Required Documentation: Forms, checklists, and templates the broker must use

4. Schedule D - Compliance Guidelines: Detailed procedures for ensuring compliance with franchise laws

5. Schedule E - Reporting Requirements: Templates and timing for required periodic reports

6. Appendix 1 - Broker Qualification Criteria: Required qualifications and certifications for the broker and their staff

7. Appendix 2 - Standard Operating Procedures: Step-by-step procedures for lead handling and franchisee recruitment

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

Retail

Food and Beverage

Education and Training

Healthcare

Personal Services

Professional Services

Automotive

Real Estate

Technology

Hospitality

Fitness and Wellness

Home Services

Relevant Teams

Legal

Business Development

Franchise Operations

Commercial

Compliance

Sales

Executive Leadership

Contract Administration

Relevant Roles

Franchise Development Manager

Business Development Director

Legal Counsel

Franchise Operations Manager

Chief Executive Officer

Commercial Director

Franchise Sales Manager

Business Development Manager

Franchise Broker

Franchise Consultant

Compliance Officer

Contract Manager

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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