The Direct Franchise Agreement is the primary contract used when establishing a franchise relationship in Singapore. It's essential for businesses expanding tHRough franchising, providing a comprehensive framework for the relationship between franchisor and franchisee. The agreement covers all aspects of the franchise operation, including brand usage, operational standards, fees, and territory rights. Under Singapore law, while franchise registration isn't mandatory, the agreement must comply with various regulations including competition law, intellectual property protection, and data privacy requirements. This document is crucial for protecting both parties' interests and ensuring clear understanding of rights and obligations.
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1. Parties: Identification and details of the franchisor and franchisee
2. Background: Context of the franchise agreement and business system
3. Definitions: Key terms used tHRoughout the agreement
4. Grant of Franchise: Terms of franchise rights and territory
5. Intellectual Property Rights: Usage of trademarks, copyrights, and system
6. Fees and Payments: Initial fees, royalties, and payment terms
7. Obligations of Franchisor: Support, training, and ongoing assistance
8. Obligations of Franchisee: Operational requirements and compliance
9. Term and Renewal: Duration and renewal conditions
10. Termination: Grounds and procedures for termination
1. Development Schedule: Special provisions for multi-unit franchises with scheduled openings - used when agreement includes multiple unit developments
2. International Operations: Special provisions for international franchising - used for cross-border franchise operations
3. Online Operations: E-commerce and digital presence requirements - used when online operations are part of franchise system
1. Operations Manual Summary: Overview of franchise system operations
2. Territory Map: Defined geographic territory for franchise operations
3. Initial Investment Schedule: Breakdown of required initial investments
4. Training Program: Details of required training programs
5. Brand Standards: Visual identity and brand usage guidelines
6. Equipment and Inventory Requirements: Required equipment and inventory specifications
7. Approved Suppliers List: List of approved suppliers and vendors
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