Free Cafe Retail Franchise Agreement

This Cafe Retail Franchise Agreement (the "Agreement") is entered into on [Date], by and between [Your Company Name], located at [Your Company Address], hereinafter referred to as the "Franchisor," and [Franchisee Name], located at [Franchisee Address], hereinafter referred to as the "Franchisee."

WHEREAS, the Franchisor is the owner of certain trademarks, trade names, service marks, and other intellectual property associated with its cafe business (the "System"), and desires to grant to the Franchisee the right to operate a cafe using the System; and

WHEREAS, the Franchisee desires to obtain a franchise to operate a cafe using the System and to use the Franchisor's trademarks, trade names, and service marks in connection with the operation of the cafe;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

I. Grant of Franchise

A. The Franchisor hereby grants to the Franchisee, and the Franchisee accepts, the right and license to operate a cafe using the System and to use the Franchisor's trademarks, trade names, and service marks in connection with the operation of the cafe.

B. The franchise is granted for a term of [Number of Years] years, commencing on [Commencement Date] and expiring on [Expiration Date], unless terminated earlier in accordance with the terms of this Agreement.

II. Franchise Fees and Royalties

A. Initial Franchise Fee: The Franchisee shall pay to the Franchisor an initial franchise fee in the amount of [Amount] upon signing this Agreement.

B. Royalty Fees: The Franchisee shall pay to the Franchisor a royalty fee equal to 5% of the gross sales of the cafe on a monthly basis.

C. Advertising Fees: The Franchisee shall contribute 2% of gross sales to a national advertising fund on a quarterly basis.

III. Training and Support

A. Initial Training Program: The Franchisor shall provide the Franchisee with an initial training program for 10 days at a designated training location.

B. Ongoing Support and Training: The Franchisor shall provide the Franchisee with ongoing support and training as needed, including updates to the operations manual and assistance with marketing and advertising.

IV. Obligations of the Franchisee

A. Compliance with Standards: The Franchisee shall comply with all standards, specifications, and operating procedures set forth in the operations manual provided by the Franchisor.

B. Use of Trademarks: The Franchisee shall use the Franchisor's trademarks, trade names, and service marks only in accordance with the guidelines provided by the Franchisor.

C. Reporting Requirements: The Franchisee shall provide the Franchisor with regular reports on the operation and performance of the cafe as requested.

V. Obligations of the Franchisor

A. Support and Assistance: The Franchisor shall provide the Franchisee with ongoing support and assistance, including updates to the operations manual and marketing materials.

B. Protection of Trademarks: The Franchisor shall take all necessary steps to protect its trademarks, trade names, and service marks.

VI. Term and Termination

A. Duration of Agreement: This Agreement shall commence on [Commencement Date] and shall continue in effect for a period of [Number of Years] years, unless terminated earlier in accordance with the terms herein.

B. Termination: Either party may terminate this Agreement upon written notice to the other party if the other party breaches any material term or condition of this Agreement and fails to cure such breach within [Number of Days] days after receiving written notice thereof.

VII. Renewal and Transfer

A. Renewal: The Franchisee may renew this Agreement for an additional term of [Number of Years] years upon written notice to the Franchisor at least [Number of Days] days prior to the expiration of the initial term, provided that the Franchisee is not in default of any terms of this Agreement.

B. Transfer: The Franchisee may not transfer or assign this Agreement or any rights hereunder without the prior written consent of the Franchisor, which consent may be withheld in the Franchisor's sole discretion.

VIII. Dispute Resolution

Any dispute arising under or relating to this Agreement shall be resolved through mediation by a mutually acceptable mediator, with each party bearing its own costs. If mediation is unsuccessful, the parties agree to submit the dispute to binding arbitration in accordance with the rules of the American Arbitration Association.

IX. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of [State], without regard to its conflict of law principles.

X. Miscellaneous Provisions

A. Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, representations, and understandings, whether written or oral.

B. Severability: If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the validity, legality, or enforceability of the remaining provisions shall in no way be affected or impaired.

Signatures

Franchisee

[Name]

[Date]

Franchisor

[Name]

[Date]

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