The Franchise Agreement contains the following items.
I. FRANCHISEE'S ACKNOWLEDGEMENT OF BUSINESS RISK AND ABSENCE OF GUARANTEE
II. FRANCHISEE'S ACKNOWLEDGEMENT CONCERNING RECEIPT AND THOROUGH EVALUATION OF AGREEMENT
III. ACTUAL, AVERAGE, PROJECTED, OR FORECASTED FRANCHISE SALES, PROFITS OR EARNINGS
IV. INDEPENDENT CONTRACTOR
A. Franchisee Is an Independent Contractor
B. Franchisor is not in a Fiduciary Relationship with Franchisee
V. FRANCHISE GRANT
VI. EXCLUSIVE RIGHT OR TERRITORY
VII. TERM AND RENEWAL OF AGREEMENT
A. Term
B. Renewal
VIII. FRANCHISEE'S INITIAL INVESTMENT
IX. FRANCHISEE'S INITIAL FRANCHISE FEE
A. Time Limit for Starting Business
B. Cooperation Required
C. Initial Franchise Fee
D. Time Limit for Approving Franchisee
X. OTHER FEES
A. Royalty
B. National Advertising Fees
C. Local Advertising Plan and Expenditures
D. Local Advertising Plan
E. Local Advertising Expenditures
F. Grand Opening Expenditures
XI. FINANCING ARRANGEMENTS
XII. GENERAL OBLIGATIONS OF FRANCHISEE
A. Follow Operations Manual and Directives of Franchisor
B. Operate Franchised Business Only
C. Comply with Laws
D. Maintain Confidentiality of Proprietary Information
E. Maintain and Renovate Business
F. Maintain Competent Staff
G. Open Business within Time Limit
H. Operate Business in Strict Conformity to Requirements
I. Use Approved Supplies and Products
J. Use Approved Equipment
K. Full-Time Manager Required
L. Use Approved Signs
M. Invoices
N. Maintain Regular Business Hours
O . Maintain Uniform Operating Standards
P. Accounting
Q. Telephone Number of Business
R. Disclose Discoveries and Ideas to Franchisor
S. Permit Franchisor to Enter Business
T. Additional Requirements for Corporate Franchise
U. Site Selection
V. Training
W. Miscellaneous
XIII. SPECIFIC OBLIGATIONS OF FRANCHISEE RELATING TO INSURANCE
A. Overall Coverage Required
B. Insurance Carrier Must be Approved by Franchisor
C. No Limitations on Coverage
D. Franchisee Must Provide Evidence of Coverage to Franchisor
E. Franchisor May Procure Insurance Coverage
XIV. SPECIFIC OBLIGATIONS OF FRANCHISEE RELATING TO ACCOUNTING AND RECORDS
A. Bookkeeping, Accounting, and Records
B. Franchisor's Right to Audit
C. Reporting of Gross Sales
D. Accounting Equipment
XV. SPECIFIC OBLIGATIONS OF FRANCHISEE RELATING TO USE OF NAMES AND MARKS
A. Names and Marks are Owned by Franchisor
B. Franchisee is Licensed to Use Names and Marks
C. Franchisee Will Not Challenge Franchisor's Rights in its Names and Marks
XVI. SPECIFIC OBLIGATIONS OF FRANCHISEE RELATING TO CONFIDENTIALITY OF PROPRIETARY INFORMATION
A. Franchisee Will Learn Proprietary Matters
B. Franchisee's Employees Will Not Disclose Proprietary Information
C. Injunctive Relief is Available to Franchisor
D. Franchisor's Patent Rights and Copyrights
XVII. SPECIFIC OBLIGATIONS OF FRANCHISEE RELATING TO TAXES, PERMITS, AND LAWSUITS
A. Franchisee Must Notify Franchisor of Lawsuits
B. Franchisee Must Comply with Laws
C. Franchisee Must Pay Taxes Promptly
D. Franchisee May Contest Tax Assessment
XVIII. SPECIFIC OBLIGATION OF FRANCHISEE RELATING TO INDEMNIFICATION
XIX. MISCELLANEOUS COVENANTS OF FRANCHISEE
A. Covenants are Independent
B. Franchisee Will Not Compete Against Franchisor
C. Exception to Covenant Not to Compete
D. Franchisee Will Not Divert Business
E. Franchisor is Entitled to Injunctive Relief
F. Covenants are Enforceable, Independent of Claims
G. No Right of Set-Off
XX. OBLIGATIONS OF THE FRANCHISOR: SUPERVISION AND ASSISTANCE
A. The Training Program
B. Site Selection
C. Business Layout and Design
D. Post-Training Assistance
E. Operations Manual
F. Selecting Supplies
G. Recommended Price Schedules
H. Advertising and Promotion
XXI. VARYING STANDARDS
XXII. SALE OF FRANCHISE
A. Assignment by Franchisee
B. Assignment by Franchisor
C. Transfer upon Death or Mental Incapacity
D. Sale of Franchised Business
XXIII. TERMINATION OF FRANCHISE
A. Impact of Statutes upon Franchise Agreement
B. By Franchisor
C. Termination of Franchise without Cure
D. Termination of Franchise with Cure
E. By Franchisee
XXIV. FRANCHISEE’S OBLIGATIONS UPON TERMINATION OR EXPIRATION
A. Franchisee Shall Cease Using Names and Marks
B. Franchisee Shall Cease Operating Business
C. Franchisee May Not Adopt Confusingly Similar Names or Marks
D. Franchisee Shall Cancel Assumed Names and Transfer Phone Numbers
E. Franchisee Must Return Manual and Other Materials
F. Franchisor May Purchase Inventory and Equipment
G. Franchisee Must Pay Monies Owed to Franchisor
XXV. ENFORCEMENT
A. Franchisee May Not Withhold Payments Due Franchisor
B. Severability and Substitution of Valid Provisions
C. Arbitration
D. Rights of Parties Are Cumulative
E. Judicial Enforcement, Injunction, and Specific Performance
F. Construction
G. Home State Law Applies
H. Attorney Fees
I. Binding Effect
J. There Are No Unwritten Agreements
K. Entire Agreement
L. Force Majeure
XXVI. APPROVALS AND WAIVERS
XXVII. AUTHORITY
XXVIII. NOTICES |
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