International Franchise Agreement 4i2b27

International Franchise Agreement compliments of:

www.CuetoLawGroup.com

INDEX

Parties Recitals Articles 1. Object of the contract 2. Independence of the Parties 3. Authorized establishment 4. Territorial exclusivity 5. Duration and renewal of contract 6. Commencement of activity 7. Adaptation and furnishing of authorized establishment 8. License to Intellectual Property Rights 9. Franchise fees 10. Franchise Handbook 11. Assistance and training 12. Provision of products 13. Start-up stock 14. Computerized Management System 15. Inventory and supervision rights 16. Insurance 17. Advertising 18. Confidentiality 19. Non competition 20. Transferral of contract 21 Termination of contract 22. Post-contractual obligations 23. Force Majeure 24. Notification 25. Applicable law and competent jurisdiction 26. Language Signatures Annex

INTERNATIONAL FRANCHISE CONTRACT Date: ......................................................................................................................................

Between:

................................. [company legal name] whose ed office is at ..................................... [address, city and country] and registration/fiscal number is .............................. (hereafter referred to as the "Franchisor"),

and:

Alternative A [When the Franchisee is an individual]

Mr./Ms. …………….., of legal age, ………………...........[include professional qualification], Tax Identification Number………….., ed address …………… , acting on his/her own behalf (hereafter, the "Franchisee").

Alternative B [When de Franchisee is a company]

................................. [company legal name] whose ed office is at .................................. [address, city and country] and registration/fiscal number is .............................. (hereafter referred to as “the Franchisee"). Both parties undertake to observe the following agreement:

RECITALS

I.

That the Franchisor is a company which ……………………………………. [Describe the economic activity of the company and specify the nature of the products which it supplies].

II.

That the Franchisor has developed, as the Franchisee acknowledges:

(a)

A specific design for its establishments;

(b)

A management process for its establishments; and

(c)

Guidelines for customer attention,

which together make up the know-how acquired by the Franchisee by means of the investment of financial and human resources, in addition to his/her experience in managing the business to which the present Contract refers. All of this will be referred to in the present Contract as the Franchisor’s “Know-How”.

III.

That the Franchisor’s know-how is of secret, substantial and identifiable nature. The “secret” nature is derived from the fact that the Franchisor’s Know-How, in its totality and as the aggregate of its component parts, is not common knowledge, nor is it readily available. The “substantial” nature is derived from the fact that the Franchisor’s Know-How includes important information as to the correct management of the business to which the franchise applies. The “identifiable” nature is derived from the fact that the Franchisor’s Know-How is described in sufficient detail in the preliminary training programs and in the Franchise Handbook which the Franchisee shall receive on g the present Contract.

IV.

That the activity of the Franchisor is carried out under the auspices of Industrial Property Deeds (trademarks, brands, patents) or Intellectual Property Deeds (rights of authorship, software), acting as the owner, as described in Annex 1 of the present Contract.

V.

That the Franchisee acknowledges his/her enhanced competitive position in the market which arises from acquiring the Franchisor’s Know-How, as well as the management of the business under the corporate image of the Franchisor, including Industrial and Intellectual Property Deeds as laid out in Section IV above.

VI.

That the Franchisee acknowledges that the preliminary market and viability studies that (s)he has carried out, together with the Franchisor, have been calculated upon prudent economic estimates, which the Franchisee must not regard as any sort of undertaking or commitment of profitability on the part of the Franchisor. The Franchisee acknowledges that the economic results which arise from the present Contract, shall be largely due to his/her own ability to manage the business, customer service, as well as other external factors such as competitor initiatives or changes in consumer tastes; such outcomes are mentioned solely as examples and not as a defining list. The Franchisee acknowledges that, prior to g this , (s)he has enjoyed the right to receive from whichever professionals (s)he sees fit, independent legal and financial advice.

VII.

That the Franchisee acknowledges the and conditions of the present Contract as reasonable and necessary for maintaining the high levels of quality and customer service with which the network of ……….. [name of Franchisor] establishments is to be identified and recognized in the market, to the benefit of the Franchisor and all Franchisees belonging to the ………….. [name of Franchisor] network.

In accordance with the aforementioned points, both Parties agree to the handover of the present Franchise Contract, which shall be subject to the following agreements: Article 1.

Object of the Contract

By means of the present Contract, the Franchisor grants the Franchisee, who correspondingly accepts, the right to form part of the ………………..[name of Franchisor], as a franchise, using under license the Property Deeds stipulated in Section IV of the Preamble of the present Contract as well as the KnowHow of the Franchisor, according to the and conditions laid out in the following articles. Article 2.

Independence of the Parties

2.1. Franchisor and Franchisee are legally and financially independent Parties. The present Contract does not confer any sort of relationship between them other than that which is the object of the franchise. 2.2. The Franchisee shall not represent the Franchisor in any way, nor assume any short of commitment in the Franchisor’s name. The Franchisee assumes sole responsibility, before any third party, including –but not limited to– official local and national bodies and istration entities, for his/her own actions and inaction, thus relieving the Franchisor of any liability arising from any action or inaction of the Franchisee. The Franchisee shall compensate the Franchisor for any complaint, responsibility or jeopardy which the Franchisor may bear on o the actions or inaction of the Franchisee. The Franchisor shall be responsible to the Franchisee solely for complaints, responsibilities or jeopardy which result from the Franchisor’s neglect of the obligations which (s)he assumes in the present Contract. 2.3. It is the sole duty of the Franchisee to Contract, pay and dismiss his/her employees, regardless of the nature of the Contract which the Franchisee chooses to use, as well as fulfilling the labour and social security obligations which may arise from those.

2.4. It is the sole duty of the Franchisee to comply with all obligations of trade, istrative, fiscal or other nature for which liability may arise through the commercial activity which the Franchisee shall develop by means of the present Contract.

2.5. It is the sole duty of the Franchisee to apply for, receive and conserve whatever licenses or other istrative authorizations may be required by any official authority for all construction and refurbishing work within the establishment in which the commercial activity, to which the present Contract applies, shall be carried out; as well as any other authorization or license required for the running of the business to which the present Contract applies. 2.6. The Franchisee, being an independent businessperson, shall manage the business as his/her own, assuming the consequent benefits and risks.

2.7. It shall be the duty of the Franchisee to declare his/her condition of independent company in all correspondence on paper, invoices, business cards, delivery notes and similar, without jeopardizing the universal corporate image of the franchise network. To this end, the aforementioned elements of correspondence must comply strictly with the guidelines governing such matters which the Franchise Handbook contains. Article 3.

Authorized establishment

3.1. The Franchisee shall manage the commercial activity derived from the rights conferred through the present document in the establishment identified in Annex 2 of the present Contract. 3.2. The Franchise which is conferred by the present Contract authorizes commercial activity only on the aforementioned premises. The Franchisee may therefore not change the location of the premises on which business is to be done, nor open any other premises for the franchise operation without explicit permission in writing from the Franchisor, who shall grant or decline authorization as (s)he sees fit. Article 4.

Territorial exclusivity

4.1. The Franchisor grants the Franchisee territorial exclusivity within the area described in Annex 3 of the present Contract.

4.2. The Franchisor undertakes not to set up any establishment belonging to the ………………..[name of Franchisor] network, either on his/her own or through third parties by means of franchising or any other type of contractual arrangement which involves the use by a third party of the Franchisor’s KnowHow or the Industrial and Intellectual Property Deeds described in Section IV of the Recitals of the present Contract.

International Franchise Agreement compliments of:

www.CuetoLawGroup.com