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A Letter Of Intent For Franchise Food Business is a crucial preliminary document used in the initial stages of franchise negotiations in Indonesia. It serves as a formal expression of interest between a franchisor and a potential franchisee, outlining the basic terms and conditions under which the parties intend to proceed with a full franchise agreement. This document is particularly important in the Indonesian context, where franchise relationships are regulated by Government Regulation No. 42 of 2007 and various Ministry of Trade regulations. The LOI typically includes proposed commercial terms, territory rights, confidentiality provisions, and due diligence requirements, while maintaining a non-binding nature except for specific provisions like confidentiality and exclusivity. It's commonly used when parties have progressed beyond initial discussions but aren't yet ready to commit to a full franchise agreement, providing a structured framework for further negotiations and due diligence.

1. Date and Parties: Full legal names and addresses of both the potential franchisor and franchisee

2. Introduction: Brief statement establishing that this is a Letter of Intent regarding a potential franchise relationship

3. Business Description: Overview of the franchise business concept and brand

4. Proposed Terms: Key commercial terms including territory, fees, and general obligations

5. Due Diligence: Process and timeline for information exchange and evaluation

6. Timeline: Expected dates for key milestones including due diligence, negotiation, and signing of final agreements

7. Confidentiality: Binding provisions regarding the protection of confidential information

8. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific provisions

9. Exclusivity Period: Period during which the franchisor will not negotiate with other potential franchisees for the same territory

10. Signatures: Execution block for both parties