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Franchise Broker Agreement Template for Pakistan

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Key Requirements PROMPT example:

Franchise Broker Agreement

"I need a Franchise Broker Agreement for my international restaurant chain's expansion into Pakistan, giving exclusive rights to a broker to recruit franchisees in Karachi and Lahore, with a five-year term starting January 2025 and including cross-border payment provisions."

Document background
The Franchise Broker Agreement is a critical document used when a franchisor wishes to expand their franchise network through professional intermediaries in Pakistan. This agreement is essential for franchisors who want to accelerate their growth by leveraging professional broker services for franchisee recruitment. The document comprehensively covers broker appointment, territory rights, commission structures, and compliance requirements under Pakistani law. It includes specific provisions for protecting the franchisor's intellectual property and maintaining system standards while providing clear guidelines for broker compensation and performance expectations. The agreement must comply with Pakistani commercial laws, including the Contract Act 1872, Competition Act 2010, and relevant business regulations, while addressing industry-specific requirements for franchise development.
Suggested Sections

1. Parties: Identification of the franchisor and the broker, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the franchise system, and purpose of engaging a broker

3. Definitions: Key terms used throughout the agreement, including 'Franchise System', 'Territory', 'Prospective Franchisee', and 'Broker Services'

4. Appointment and Scope: Terms of broker appointment, whether exclusive or non-exclusive, and detailed scope of authorized services

5. Territory: Geographic area where the broker is authorized to operate and any territorial restrictions

6. Broker's Obligations: Detailed responsibilities including lead generation, franchisee screening, and reporting requirements

7. Franchisor's Obligations: Support, training, and materials to be provided by the franchisor to the broker

8. Compensation Structure: Commission rates, payment terms, and conditions for earning commissions

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property: Terms for using franchisor's trademarks and other intellectual property

11. Term and Termination: Duration of the agreement and grounds for termination

12. Post-Termination Obligations: Obligations and restrictions after agreement termination

13. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms under Pakistani law

Optional Sections

1. Non-Compete Clause: Restrictions on broker's involvement with competing franchise systems, optional based on market conditions and negotiating position

2. International Operations: Additional terms for brokers operating across international borders, needed only for cross-border operations

3. Sub-Brokers: Terms for engaging and managing sub-brokers, if permitted

4. Insurance Requirements: Specific insurance coverage requirements, may vary based on services and territory

5. Marketing Contributions: Terms for shared marketing efforts and cost allocation, if applicable

6. Performance Targets: Specific performance metrics and consequences, optional based on business model

7. Training Program: Detailed training requirements and programs, if extensive training is needed

Suggested Schedules

1. Schedule A - Commission Structure: Detailed breakdown of commission rates, bonus structures, and payment terms

2. Schedule B - Territory Map: Detailed map and description of the authorized territory

3. Schedule C - Approved Marketing Materials: List of approved marketing materials and usage guidelines

4. Schedule D - Reporting Templates: Standard forms and templates for regular reporting

5. Schedule E - Due Diligence Requirements: Checklist and procedures for franchisee screening

6. Schedule F - Confidentiality Agreement: Detailed confidentiality terms and procedures

7. Appendix 1 - Broker Qualification Criteria: Required qualifications and maintenance requirements for broker status

8. Appendix 2 - Standard Operating Procedures: Step-by-step procedures for key broker activities

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries

Retail

Food and Beverage

Healthcare

Education

Professional Services

Hospitality

Real Estate

Automotive

Fashion and Apparel

Technology Services

Personal Services

Business Services

Relevant Teams

Legal

Franchise Development

Business Development

Operations

Compliance

Finance

Sales

Commercial

Relevant Roles

Franchise Development Director

Business Development Manager

Franchise Sales Manager

Legal Counsel

Franchise Operations Manager

Franchise Recruitment Manager

Commercial Director

Business Expansion Manager

Franchise Broker

Franchise Consultant

Compliance Officer

Regional Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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