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Non Exclusive Franchise Agreement
"I need a Non-Exclusive Franchise Agreement for my Malaysian bubble tea business, allowing franchisees to operate in multiple territories across Kuala Lumpur and Selangor, with specific provisions for halal certification requirements and local sourcing of ingredients."
1. Parties: Identification of franchisor and franchisee with complete legal details
2. Background: Description of the franchise business, brand history, and purpose of the agreement
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Grant of Franchise: Terms of the non-exclusive franchise rights, territory, and permitted use of intellectual property
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Franchise Fees and Payments: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms
7. Franchisor Obligations: Support, training, operations manual, marketing assistance, and other franchisor duties
8. Franchisee Obligations: Operational standards, compliance requirements, reporting obligations, and performance targets
9. Intellectual Property Rights: Usage of trademarks, patents, copyright materials, and trade secrets
10. Training and Support: Initial and ongoing training requirements, technical support provisions
11. Marketing and Advertising: Marketing obligations, advertising fund contributions, local marketing requirements
12. Quality Control: Quality standards, inspection rights, and compliance requirements
13. Records and Reporting: Financial records, reporting requirements, and audit rights
14. Insurance and Indemnity: Required insurance coverage and mutual indemnification provisions
15. Transfer and Assignment: Conditions for transfer of franchise rights and change of ownership
16. Termination: Grounds for termination, notice requirements, and consequences of termination
17. Post-Termination Obligations: Obligations after agreement ends, including non-compete and confidentiality
18. Dispute Resolution: Process for handling disputes, jurisdiction, and governing law
19. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Multi-Unit Development: Used when franchisee has rights to develop multiple units within a territory
2. E-commerce Rights: Include when online sales channels are part of the franchise system
3. Equipment Leasing: Required if franchisor leases equipment to franchisee
4. Property Lease Requirements: Include when franchise requires specific property requirements or franchisor involvement in property selection
5. Supply Chain Obligations: Used when franchise requires purchase of supplies from designated suppliers
6. International Operations: Include for franchises operating across international borders
7. Halal Certification: Required for food and beverage franchises requiring Halal certification in Malaysia
8. Covid-19 or Force Majeure Provisions: Detailed provisions for handling pandemics or other force majeure events
1. Schedule 1 - Franchise Territory: Detailed description and/or maps of the granted territory
2. Schedule 2 - Fees Schedule: Comprehensive breakdown of all fees, royalties, and payment terms
3. Schedule 3 - Trademark and Intellectual Property: List of all registered trademarks, patents, and intellectual property included in the franchise
4. Schedule 4 - Initial Training Program: Details of required initial training, duration, location, and content
5. Schedule 5 - Operations Manual Table of Contents: Overview of the operations manual content (full manual provided separately)
6. Schedule 6 - Equipment and Inventory Requirements: Detailed list of required equipment, initial inventory, and specifications
7. Schedule 7 - Design and Layout Specifications: Store design, layout requirements, and brand standards
8. Schedule 8 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits
9. Appendix A - Franchise Disclosure Document: Required disclosure document under Malaysian Franchise Act
10. Appendix B - Financial Reporting Templates: Standard forms for financial reporting and recordkeeping
11. Appendix C - Confidentiality Agreement: Detailed confidentiality terms for employees and stakeholders
Authors
Food and Beverage
Retail
Education and Training
Healthcare Services
Automotive Services
Beauty and Wellness
Real Estate Services
Hospitality
Technology Services
Professional Services
Manufacturing
Entertainment and Recreation
Legal
Operations
Finance
Business Development
Compliance
Marketing
Brand Management
Training
Quality Assurance
Property Management
Supply Chain
Risk Management
Chief Executive Officer
Franchise Development Manager
Legal Counsel
Operations Director
Commercial Director
Business Development Manager
Compliance Officer
Brand Manager
Financial Controller
Training Manager
Property Manager
Quality Assurance Manager
Marketing Director
Supply Chain Manager
Regional Development Manager
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