For those businesses that have decided to scale up by issuing franchises, and who do not want to contact professional lawyers to develop an individual agreement for a specific project, we suggest using a sample (commercial) franchise agreement.
FRANCHISE AGREEMENT
Zurich, Switzerland
“__” August 2022
The company “Lawyer” hereby duly represented by CEO (hereinafter referred to as “Franchisor”), on the one hand,
and,
Attorney, (hereinafter referred to as “Franchisee”) on the other hand,
hereinafter jointly referred to as the “Parties” or, individually, as the “Party”;
have concluded current Franchise agreement (hereinafter referred to as “Agreement))
- Definitions
For the purpose of the present Agreement, the Parties agree that the following terms and expressions are to be defined as follows:
- “Confidential Information” means all information and documentation of either Party, including but not limited to, technical information and data, customer and information, trade secrets, business processes, methodologies, tools, financial data, statistical information, personnel and other business data and any commercially valuable information in whatever form relating to either Party and their respective businesses.
- “Franchisee Income” means income received by Franchisee from providing the Services to the Franchisee’s clients within the Territory for the appropriate period as a result of using the Franchise.
- “Disclosing Party” means the Party disclosing Confidential Information.
- “Royalty or Royalties” means the Royalty payable by Franchisee to Franchisor.
- “Force Majeure Event” means an event beyond the reasonable control of the performing Party, including, but not limited to, acts of labour disputes or general industry strikes which occur despite any appropriate judicial or other actions taken by such Party to avoid them, war whether declared or not, riot, earthquake, flood, fire, governmental restrictions, terrorist attack.
- “Receiving Party” means the Party receiving Confidential Information.
- “Trademarks” means Franchisors’ Trademarks.
- “Services” means services performed by the Franchisee to the Clients on the Territory.
- “Territory” means the Territory of Switzerland.
- “Franchise” means the right of the Franchisee to run business under the Trademarks of the Franchisor.
- Subject Matter
- Franchisor grants, and the Franchisee obtains Franchise for its usage under the condition that Franchisee obliges to pay to the Franchisor the fee (Royalty) and run its activity according to the Franchisors business model.
- The Parties confirm that during the execution of this Agreement the Franchisee acts as an independent contractor in accordance with the law of Switzerland and in no case may be considered as a hired employee of the Franchisor.
- FRANCHISE PERFORMANCE
- Franchisor consults, instructs about business running, as well as implements other measures, aimed to prepare Franchisee to run business according to the Franchisors standards.
- Franchisor assists the Franchisee in marketing, advertising the Services, for that purpose shall be used different platforms, advertising resources etc.
- Franchisee by its own efforts and at its own costs ensures the Services performance. Franchisee at its own is responsible for quality and timing of the Services performance.
- PAYMENTS
- The franchise fee (royalty) consists of two parts:
- The admission fee – 1 BTC.
- Percentage rate – 1 ETH.
- The franchise fee (royalty) consists of two parts:
- INTELLECTUAL PROPERTY RIGHTS
- Franchisee shall not be entitled to register the Trademarks and any part thereof as a patent, registered design or otherwise without the prior written consent of Franchisor.
- Confidentiality
- The provisions of the Agreement are confidential.
- Term
- The present Agreement has been entered into and shall bind the Parties as from the Agreement Date and shall continue in force for a term of two (2) years.
- Each Party may terminate this Agreement immediately by notifying the other Party in 15 (fifteen) days before date of early termination.
- RESPONSIBILITY
- Parties are liable according to the law.
- Force Majeure
- No Party shall be deemed to be in breach of this Agreement by reason of any delay in performing, or any failure to perform any of their respective obligations in relation to this Agreement, if the delay or failure was due to a Force Majeure Event.
- If either Party suffers delay in the execution of its contractual obligations due to the occurrence of a Force Majeure Event, it shall promptly give the other Party notice in writing of the cause of the delay and the expected duration thereof. Both Parties shall use their best efforts to avoid or minimize the effects upon their obligations assumed hereunder of such Force Majeure Event and shall perform their contractual obligations as promptly as reasonably practicable after removal of the Force Majeure Event and its effects.
- Applicable Law and Jurisdiction
- The present Agreement, all amendments hereto and any and all Disputes arising here from or related hereto, shall be governed by and construed exclusively in accordance with the laws of Switzerland.
- All Disputes shall be resolved by the courts of Switzerland according to the laws of Switzerland.
- GENERAL PROVISIONS
- The present Agreement and all Annexes hereto constitute the entire understanding between the Parties hereto with respect to the subject matter of the present Agreement and supersedes all prior communications between the Parties, both oral and written, including but not limited to proposals, previous negotiations, agreements, commitments, understandings, representations, warranties and certifications, express or implied (if any).
- This Agreement is drawn up in Ukrainian and English induplicate. In case of conflicts or discrepancies between Ukrainian and English texts, the English text is prevailing.
DETAILS AND SIGNATURES OF THE PARTIES
Franchisor
LAWYER
Franchisee
ATTORNEY
This sample (commercial) franchise agreement is provided free of charge and therefore no claims will be accepted as to its content or the results of its use.
This sample (commercial) franchise agreement is intended for educational purposes, as well as for fans of “standard” and “simple” agreements.
We always strongly recommend that a specific agreement be developed for a particular project, taking into account the specific conditions of the business. The development of a (commercial) franchise agreement is a paid service.
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