The Franchise License Agreement is a crucial document used when a business (franchisor) wishes to expand its operations by allowing other parties (franchisees) to use its business model, brand, and operating systems in Singapore. This agreement outlines all essential aspects of the franchise relationship, including initial and ongoing fees, training requirements, quality standards, and territorial rights. It must be carefully drafted to comply with Singapore's legal framework and protect both parties' interests while ensuring the franchise system's integrity and consistency.
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1. Parties: Details of the franchisor and franchisee, including registered addresses and company registration numbers
2. Background: Brief description of the franchise system and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Grant of License: Scope of franchise rights, territory, and terms of the license
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Fees and Payments: Initial franchise fee, ongoing royalties, and payment terms
7. Intellectual Property Rights: Use of trademarks, trade secrets, and other IP
8. Training and Support: Franchisor's obligations regarding training and ongoing support
9. Operating Standards: Required operational procedures and quality standards
10. Termination: Grounds and procedures for termination
1. Development Schedule: Specific section for multi-unit franchises, outlining expansion timeline and development obligations
2. E-commerce Rights: Provisions governing online sales and digital presence requirements for the franchise
3. Equipment Leasing: Terms and conditions for equipment provided by franchisor, including maintenance and replacement
4. Immigration Compliance: Special provisions for foreign franchisees regarding immigration and work permit requirements
1. Schedule 1: Territory Map: Detailed map and description of licensed territory
2. Schedule 2: Initial Fee Schedule: Breakdown of all initial fees and payments
3. Schedule 3: Operations Manual Table of Contents: Overview of operational procedures
4. Schedule 4: Brand Standards: Detailed brand guidelines and requirements
5. Schedule 5: Training Program: Details of required initial and ongoing training
6. Schedule 6: Approved Suppliers: List of approved suppliers and products
7. Schedule 7: Financial Reporting Templates: Required formats for financial reporting
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