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Sub Franchise Agreement Sample

(g) not to use the franchise yourself or to market services, materials or equipment in the territory, using a similar formula. In most jurisdictions, franchisors and franchisees are free, under the principle of contractual freedom, to agree on most issues. Therefore, all franchise agreements may contain all the provisions that the parties convene, provided they comply with applicable laws with respect to franchise agreements, including the general principles of commercial contracts, and do not violate public or moral standards. It is important that the franchisor, in the current agreement, adequately regulates all issues essential to the franchised business and its system, such as confidentiality. B, the use of intellectual property, anti-corruption practices and principles, compensation and obligations, including lack of competition. How to protect the franchisor from infringements committed by its under-franchisee, principal franchisee or development agent (K) The franchisor`s success in the territory depends, among other things, on the fact that the franchisee and its franchisees provide the public with an instantly efficient, satisfactory and courteous service using the materials that are the subject of the franchise and contained in Schedule II and the equipment. , which is also listed in Appendix II, and on the vigorous cultivation and expansion of the services market by the franchisee. The franchisor concludes this agreement with the assurance of the franchisee to engage in the development of the business in the territory. Another important difference is that franchisees generally have the right to collect and collect franchise fees from the under-franchised and are themselves required to pay some of these fees to the franchisor, while the under-franchised are required to pay the franchisee such fees. On the other hand, development agents have the right to collect a commission directly from the franchisor for the acts they perform on behalf of the franchisor. Is a franchisee master considered a development agent? 2.

The franchisor pays the franchisor a franchise fee equal to 10 per cent of the total value (excluding VAT) of all invoices made by franchisees during each accounting period before tax deduction (excluding vat), commissions or other charges or charges. The master franchisee must also pay any VAT that the franchisor correctly collects on the franchise fees in question. A franchisee master is not considered a development agent. The main difference between the two figures is that a development officer will never make a franchise; In other words, it is not granted with a franchise and the right to operate a franchise, which the principal franchisor can do either directly or by granting that right to a sub-franchise. In addition, the franchisor must ensure compliance with the franchisee`s rules in order to present and obtain the licenses and authorizations necessary for the creation, development and operation of the franchised units. If the franchisee does not receive a licence or authorization for the aforementioned purposes, the franchised plant may be closed by the authorities and the franchisor may suffer indirect economic losses. The franchise and licence granted under the main franchise agreement cannot be exclusive or exclusive, although this is generally the latter, as explained below. In a franchise agreement, the company to which the franchisor or « franchisor » belongs grants the other company or « franchisee » the right to use the protected trademarks and the system for the operation of the business or franchise. In most cases, the agreement limits the deductible to a specific location, so the franchisor cannot move to another jurisdiction.