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Franchise Lease Agreement Template for Philippines

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Key Requirements PROMPT example:

Franchise Lease Agreement

"I need a Franchise Lease Agreement for a national coffee shop chain expanding in Manila, where we'll be both the franchisor and property owner, with a 10-year initial term starting March 2025 and specific requirements for maintaining brand consistency in a premium shopping mall location."

Document background
The Franchise Lease Agreement is a specialized contract used in the Philippine business environment when a franchisor wishes to both grant franchise rights and lease premises to a franchisee in a single integrated agreement. This document is particularly relevant in situations where the franchisor owns or controls the property from which the franchise will operate, common in retail and food service operations. The agreement must comply with Philippine franchise regulations, including DTI Administrative Order No. 8, Series of 2002, as well as property leasing laws under the Civil Code of the Philippines. It combines standard franchise elements such as intellectual property rights, operational standards, and royalty payments with traditional lease provisions including rent, maintenance obligations, and property use restrictions. This type of agreement is increasingly common in the Philippine market as businesses seek to maintain brand consistency through control of both operations and premises.
Suggested Sections

1. Parties: Identification of the Franchisor/Lessor and Franchisee/Lessee, including complete legal names, addresses, and registration details

2. Background: Context of the agreement, brief description of the franchise business, and property to be leased

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

4. Grant of Franchise: Specific rights granted to the franchisee, including territory rights and exclusivity provisions

5. Lease Terms: Details of the property lease including premises description, duration, and permitted use

6. Term and Renewal: Duration of both franchise and lease agreements, conditions and procedures for renewal

7. Fees and Payments: Comprehensive financial terms including franchise fees, royalties, rent, security deposits, and payment schedules

8. Intellectual Property Rights: Terms governing the use of trademarks, trade secrets, and other intellectual property

9. Operating Standards: Required operational procedures, quality standards, and compliance requirements

10. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements

11. Training and Support: Franchisor's obligations regarding initial and ongoing training and support

12. Insurance and Indemnification: Required insurance coverage and indemnification obligations

13. Default and Termination: Grounds for default, remedies, and termination procedures

14. Post-Termination Obligations: Obligations of both parties after agreement termination

15. Governing Law and Dispute Resolution: Applicable law and procedures for resolving disputes

Optional Sections

1. Assignment and Transfer: Terms for transferring franchise or lease rights, used when transfers are permitted

2. Non-Competition: Restrictions on competitive activities, included when required by business model

3. Force Majeure: Provisions for unforeseeable circumstances, particularly relevant in light of recent global events

4. Guarantees: Personal or corporate guarantees, included when additional security is required

5. Right of First Refusal: Terms giving franchisee priority rights to adjacent properties or additional territories

6. Building Modifications: Specific terms for property modifications, included for properties requiring significant alterations

7. Environmental Compliance: Environmental obligations and compliance requirements, necessary for certain business types

8. Co-Tenancy: Terms relating to other tenants in the same property, relevant for mall or shopping center locations

Suggested Schedules

1. Property Details: Detailed description of leased premises including floor plans and measurements

2. Equipment and Fixtures: List of provided equipment, fixtures, and furniture

3. Operating Manual Summary: Key points from the franchise operating manual

4. Brand Standards: Detailed specifications for brand compliance including signage and design elements

5. Financial Terms: Detailed breakdown of all financial obligations including calculation methods

6. Training Program: Overview of required training programs and schedules

7. Approved Suppliers: List of approved suppliers and products

8. Service Area Map: Detailed mapping of territory or service area

9. Form of Guarantee: Template for personal or corporate guarantee if required

10. Insurance Requirements: Detailed specifications for required insurance coverage

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














































Clauses















































Relevant Industries

Retail

Food and Beverage

Hospitality

Service Industry

Education and Training

Healthcare Services

Automotive Services

Real Estate

Fashion and Apparel

Consumer Services

Professional Services

Entertainment and Recreation

Relevant Teams

Legal

Real Estate

Operations

Finance

Compliance

Business Development

Risk Management

Property Management

Commercial

Franchise Development

Asset Management

Contract Administration

Relevant Roles

Franchise Development Manager

Real Estate Manager

Legal Counsel

Business Development Director

Operations Director

Property Manager

Compliance Officer

Chief Financial Officer

Commercial Director

Franchise Operations Manager

Asset Manager

Risk Management Officer

Business Owner

Chief Executive Officer

Leasing Manager

Contract Administrator

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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