The Termination of Franchise Agreement is a crucial document used when parties need to formally end their franchise relationship in Belgium. It is typically employed either when the franchise term naturally expires without renewal intentions, or when parties mutually agree to terminate their relationship before the intended end date. The document must comply with Belgian franchise laws, particularly the Code of Economic Law Book X and the Pre-contractual Information Act, which provide specific requirements for franchise relationships and their termination. This agreement covers essential aspects such as the termination date, financial settlements, de-identification procedures, post-termination obligations, and the handling of intellectual property rights. It serves as a comprehensive record of the parties' agreement to terminate their relationship and provides clarity on their respective rights and obligations during and after the termination process.
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1. Parties: Identification of the Franchisor and Franchisee with full legal details
2. Background: Reference to the original Franchise Agreement, its date, and brief context for termination
3. Definitions: Key terms used throughout the agreement, including reference to original franchise agreement definitions
4. Termination Date: Clear specification of when the franchise agreement terminates
5. Acknowledgment of Termination: Mutual acknowledgment of the termination and its basis
6. Outstanding Payments: Settlement of any outstanding fees, royalties, or other financial obligations
7. Return of Property: Requirements for returning franchisor's physical and intellectual property
8. Cease and Desist Obligations: Immediate cessation of franchise business operations and use of franchise system
9. Post-Termination Obligations: Ongoing obligations including non-compete and confidentiality provisions
10. De-Identification: Requirements for removing all franchise branding and identifiers
11. Final Accounts: Process for final accounting and financial settlements
12. Release of Claims: Mutual release of claims between parties
13. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction
14. Entire Agreement: Standard integration clause and relationship to original agreement
1. Transfer of Employees: Required when franchise employees need to be transferred or terminated
2. Assignment of Leases: Needed when premises leases need to be addressed
3. Customer Database Transfer: Required when handling transfer or deletion of customer data
4. Inventory Purchase: When franchisor will purchase remaining inventory from franchisee
5. Transition Assistance: When temporary transition support is to be provided
6. Third Party Contracts: Handling of existing supplier or service contracts
7. Training Obligations: If any outstanding training obligations need to be addressed
8. Dispute Resolution: Specific dispute resolution procedures if different from original agreement
1. Schedule 1 - Property Inventory: Detailed list of physical property to be returned to franchisor
2. Schedule 2 - Intellectual Property: List of IP items to cease using, including trademarks, manuals, and systems
3. Schedule 3 - Outstanding Payments: Detailed calculation of all financial settlements
4. Schedule 4 - De-Identification Requirements: Specific checklist for removing franchise branding
5. Schedule 5 - Handover Timeline: Detailed timeline for completing all termination obligations
6. Appendix A - Final Release Form: Form of mutual release to be executed
7. Appendix B - Confirmation of Compliance: Checklist for franchisee to confirm completion of obligations
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