Franchise Broker Agreement

Franchise Broker Agreement Template for Singapore

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Key Requirements PROMPT example:

"Need a Franchise Broker Agreement for our Singapore-based F&B chain, appointing an exclusive broker for Southeast Asia with a 5% commission structure, starting March 2025, with specific performance targets for Indonesia and Malaysia."

Document background

The Franchise Broker Agreement is essential when a franchisor wishes to engage professional intermediaries to expand their franchise network in Singapore. This document establishes the legal framework for broker-franchisor relationships, defining commission structures, territorial rights, and performance expectations. It incorporates Singapore's regulatory requirements, including compliance with the Franchising Code of Ethics and relevant business legislation. The agreement typically includes provisions for broker responsibilities, reporting requirements, confidentiality obligations, and dispute resolution mechanisms.

Suggested Sections

1. Parties: Identification and details of the Broker and the Franchisor

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used tHRoughout the agreement including relevant legislation references

4. Appointment and Scope: Terms of broker appointment and authorized activities under Singapore law

5. Territory: Geographical area where broker is authorized to operate

6. Commission Structure: Payment terms, rates, and calculation methods in compliance with local regulations

7. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity and authority

8. Obligations of the Broker: Detailed responsibilities and duties of the broker including compliance requirements

9. Obligations of the Franchisor: Detailed responsibilities and duties of the franchisor

10. Confidentiality: Protection of confidential information and trade secrets in accordance with PDPA

11. Term and Termination: Duration of agreement and conditions for termination

12. Dispute Resolution: Process for resolving disputes under Singapore law

13. General Provisions: Standard legal provisions including governing law, notices, and amendments

Optional Sections

1. Training Requirements: Specific training obligations and certification requirements for the broker

2. Marketing Cooperation: Terms governing joint marketing initiatives and brand guidelines

3. Performance Targets: Specific performance metrics and minimum requirements

4. Insurance Requirements: Specific insurance coverage requirements for the broker

5. Non-Compete Provisions: Restrictions on competing activities during and after the agreement

Suggested Schedules

1. Schedule 1 - Commission Schedule: Detailed breakdown of commission rates, calculations, and payment terms

2. Schedule 2 - Territory Map: Visual representation and detailed description of authorized territory

3. Schedule 3 - Required Documentation: List of documents needed for franchise transactions and compliance

4. Schedule 4 - Standard Operating Procedures: Detailed processes for broker operations and compliance requirements

5. Schedule 5 - Compliance Checklist: List of regulatory requirements and compliance measures under Singapore law

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Food & Beverage
Retail
Education
Healthcare
Services

Relevant Teams

Legal
Business Development
Operations
Finance
Compliance

Relevant Roles

Franchise Development Manager
Business Development Director
Franchise Broker
Legal Counsel
Chief Executive Officer

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Let's create your Franchise Broker Agreement

Authors

Alex Denne

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