Franchise Contract Agreement
I. Introduction
This Franchise Contract Agreement (“Agreement”) is made and entered into on this 18th day of June, 2050, by and between:
[Your Company Name], a corporation registered under the laws of the State of New Mexico, with its principal office located at [Your Company Address], represented by [Your Name], Franchise Development Director (“Franchisor”).
Venturex, a corporation registered under the laws of the State of New Mexico, with its principal office located at Albuquerque, NM 87101, represented by Emie Howell, Chief Executive Officer (“Franchisee”).
The parties hereby agree to the following terms and conditions:
II. Franchise Grant
1. Grant of Franchise
The Franchisor grants to the Franchisee a non-exclusive, non-transferable, and limited license to operate a franchise under the name [Franchise Brand Name] at a location approved by the Franchisor, and in accordance with the terms and conditions set forth in this Agreement.
2. Franchise Rights
The Franchisee is granted the right to use the Franchisor’s proprietary trademarks, logos, business methods, and systems exclusively for the operation of the franchise.
III. Franchise Fee and Payment Terms
1. Initial Franchise Fee
The Franchisee agrees to pay the Franchisor an initial franchise fee of $50,000, which is due upon the signing of this Agreement. This fee grants the Franchisee the right to operate a franchise under the Franchisor's trademark and use the established business system.
2. Royalties
The Franchisee agrees to pay the Franchisor a royalty fee of 5% of the monthly gross revenue generated by the franchise, payable on the 15th day of each month for the preceding month.
3. Marketing Fund Contribution
The Franchisee agrees to contribute 2% of the monthly gross revenue to the Franchisor’s marketing and advertising fund. This contribution is due on the 15th day of each month and is to be used for brand promotion and national advertising initiatives.
4. Payment Methods
All payments under this Agreement shall be made by wire transfer to the Franchisor’s designated account or any other mutually agreed payment method.
IV. Franchisee Obligations
1. Compliance with Standards
The Franchisee agrees to operate the franchise in accordance with the Franchisor’s standards, which include maintaining the required quality, level of service, and operational procedures as outlined in the Franchise Manual provided by the Franchisor.
2. Employee Requirements
The Franchisee agrees to hire and train employees according to the Franchisor’s guidelines and ensure that employees meet the Franchisor's qualifications. All employees must adhere to the Franchisor’s policies, which may include attending training sessions and workshops.
3. Reporting Obligations
The Franchisee shall provide the Franchisor with monthly financial statements, operational reports, and any other information required by the Franchisor to ensure compliance with this Agreement.
4. Operation of Franchise
The Franchisee agrees to operate the franchise in a professional manner, ensuring compliance with all local, state, and federal laws. The Franchisee is responsible for the lease, rent, utilities, and other operational costs for the franchise location.
V. Franchisor Obligations
1. Initial Training
The Franchisor agrees to provide initial training to the Franchisee and the Franchisee’s key personnel, including but not limited to, operations, sales, marketing, and management. This training will be conducted at a location determined by the Franchisor.
2. Ongoing Support
The Franchisor will provide ongoing support in the form of periodic visits to the franchise, telephone and email support, and updates to the Franchise Manual. The Franchisor will also assist the Franchisee with operational guidance, marketing strategies, and problem-solving.
3. Brand Development
The Franchisor will maintain and develop the brand’s image and identity, including the design and execution of marketing campaigns, national advertising initiatives, and promotional events.
VI. Term and Termination
1. Term
This Agreement shall be effective from the 18th day of June, 2050, and shall continue for a period of 5 years, unless terminated earlier by either party in accordance with the provisions of this Agreement.
2. Termination for Cause
The Franchisor may terminate this Agreement immediately upon written notice if the Franchisee:
Fails to pay any fees owed to the Franchisor within 30 days of the due date.
Breaches a key term of this Agreement and doesn't fix it within 30 days of notice.
Engages in fraud, deceit, or brand-damaging actions.
The Franchisee may terminate this Agreement by providing 90 days’ written notice to the Franchisor.
3. Termination by Mutual Consent
This Agreement may be terminated by mutual written consent of both parties at any time during the term.
4. Post-Termination Obligations
Upon termination of this Agreement, the Franchisee agrees to cease using the Franchisor’s trademarks, business methods, and systems, and to return all confidential materials provided by the Franchisor.
VII. Confidentiality and Non-Compete
1. Confidentiality
The Franchisee agrees to maintain the confidentiality of all proprietary and confidential information related to the Franchisor's business, including business methods, systems, trademarks, marketing strategies, and customer information.
2. Non-Compete
For a period of 2 years following the termination of this Agreement, the Franchisee agrees not to operate or own a similar business in the same geographic area without the Franchisor’s written consent.
VIII. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of New Mexico, without regard to its conflict of law principles. Any disputes arising under this Agreement will be resolved in the courts located in Albuquerque, NM.
IX. Miscellaneous Provisions
1. Entire Agreement
This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements and communications, whether oral or written, with respect to the subject matter hereof.
2. Amendments
Any amendments or modifications to this Agreement must be in writing and signed by authorized representatives of both parties.
3. Severability
If any provision of this Agreement is deemed invalid or unenforceable, the remainder of the Agreement will remain in effect.
X. Signatures
IN WITNESS WHEREOF, the parties have executed this Agreement as of the 18th day of June, 2050.
[Your Company Name]
[Your Name], Franchise Development Director
Date: 18th June, 2050
Venturex
Emie Howell, Chief Executive Officer
Date: 18th June, 2050
For inquiries or additional information, please contact [Your Name] at [Your Email] or reach out to [Your Company Name] at [Your Company Email].
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