The Letter of Intent for Franchise Application serves as an initial formal step in the franchise acquisition process under English law. It is typically used when a prospective franchisee has identified a specific franchise opportunity and wishes to formally express their interest before proceeding with detailed negotiations and due diligence. The document outlines the prospective franchisee's qualifications, financial capability, and proposed terms, while potentially establishing exclusivity periods for negotiations. While generally non-binding, it demonstrates serious intent and commitment to the franchise application process.
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1. Introduction and Parties: Identification of the prospective franchisee and franchisor with full legal names and addresses
2. Expression of Interest: Formal statement declaring intent to apply for the franchise opportunity and acknowledgment of non-binding nature
3. Business Background: Overview of applicant's relevant business experience, qualifications, and track record
4. Financial Capability: Declaration of available financial resources, investment capacity, and funding sources
5. Proposed Location/Territory: Details of intended location or territory for franchise operation
1. Due Diligence Requirements: Details of required documentation, information sharing, and verification processes
2. Exclusivity Period: Terms of exclusive negotiation period and conditions for maintaining exclusivity
3. Timeline and Process: Proposed schedule for application process, key milestones, and decision points
4. Confidentiality Provisions: Terms regarding the handling and protection of confidential information exchanged during the application process
5. Good Faith Declaration: Statement of commitment to negotiate in good faith and with serious intent
1. Schedule 1 - Financial Statements: Recent financial records, bank statements, or proof of financial capability
2. Schedule 2 - Business Plan: Preliminary business plan outlining proposed franchise operation
3. Schedule 3 - Professional Background: CVs/Resumes of key individuals involved in the proposed franchise
4. Schedule 4 - Property Information: Details and documentation related to proposed franchise location or territory
5. Schedule 5 - Supporting Documents: Additional documentation such as references, certifications, or licenses
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