Sub Franchise Agreement

Sub Franchise Agreement Generator for Singapore

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Key Requirements PROMPT example:

"Need a Sub Franchise Agreement for my Singapore-based bubble tea chain, granting rights to operate tHRee locations in the Central Business District to an experienced F&B operator, with operations to commence in March 2025."

Document background

The Sub Franchise Agreement is utilized when a master franchisee in Singapore wishes to expand the franchise network by granting operational rights to other parties. This document establishes the legal framework for the sub-franchise relationship, ensuring compliance with both the master franchise system and Singapore's regulatory requirements. It covers essential aspects such as territorial rights, operational standards, fee structures, and brand protection measures, while adhering to Singapore's business and franchise regulations.

Suggested Sections

1. Parties: Identification of the Sub-Franchisor and Sub-Franchisee, including full legal names and registered addresses

2. Background: Context of the agreement, including reference to the Master Franchise Agreement and authority to grant sub-franchises

3. Definitions: Key terms used tHRoughout the agreement, including those inherited from the Master Franchise Agreement

4. Grant of Sub-Franchise: Specific rights being granted, territory limitations, and term of the sub-franchise

5. Intellectual Property Rights: Terms of IP license, usage restrictions, and protection obligations

6. Fees and Payments: Initial fees, ongoing royalties, advertising contributions, and payment terms

7. Operations and Standards: Operational requirements, quality standards, and compliance with manual

8. Training and Support: Initial and ongoing training requirements, support services provided

9. Term and Termination: Duration, renewal conditions, and termination circumstances

Optional Sections

1. Development Schedule: Required when multiple units are to be developed over time - applicable for multi-unit sub-franchise arrangements

2. Local Adaptation: Modifications to standard system for local market - applicable when significant local market adaptations are required

3. Supply Chain Requirements: Specific supplier arrangements and requirements - applicable when specific supplier relationships are crucial

Suggested Schedules

1. Territory Map: Detailed definition of the granted territory

2. Fee Schedule: Detailed breakdown of all fees and payment structures

3. Operations Manual Summary: Key operational requirements and standards

4. Approved Suppliers List: List of authorized suppliers and products

5. Training Program: Detailed training requirements and schedule

6. Brand Standards: Specific requirements for maintaining brand consistency

7. Required Insurance: Details of maNDAtory insurance coverage

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
Operations
Business Development
Finance
Compliance

Relevant Roles

Franchise Development Manager
Legal Counsel
Operations Director
Business Development Director
Compliance Officer

Industries

Competition Act (Cap. 50B): Regulates anti-competitive practices and ensures fair market competition between franchises

Contracts Act (Cap. 53): Governs the fundamental principles of contract formation, validity, and enforcement in Singapore

Companies Act (Cap. 50): Regulates corporate entities and their business operations in Singapore

Sale of Goods Act (Cap. 393): Governs transactions involving the sale of goods and related commercial matters

Personal Data Protection Act 2012: Regulates the collection, use, and disclosure of personal data in franchise operations

Unfair Contract Terms Act (Cap. 396): Protects against unreasonable contract terms and conditions

Trade Marks Act (Cap. 332): Protects franchise trademarks and brand elements

Patents Act (Cap. 221): Protects franchise innovations and proprietary systems

Registered Designs Act (Cap. 266): Protects the visual design elements of franchise products

Employment Act (Cap. 91): Governs employment relationships and worker rights in franchise operations

Central Provident Fund Act (Cap. 36): Regulates mandatory social security savings for franchise employees

Workplace Safety and Health Act: Ensures safe working conditions in franchise operations

Consumer Protection (Fair Trading) Act: Protects consumer interests and regulates fair trading practices

Consumer Protection (Trade Descriptions and Safety Requirements) Act: Ensures accurate product descriptions and safety standards

Singapore Food Agency Regulations: Specific regulations for food-related franchises

Ministry of Health Regulations: Specific regulations for healthcare-related franchises

Ministry of Education Regulations: Specific regulations for education-related franchises

Franchise Development Programme Guidelines: Guidelines for franchise development and operations in Singapore

FLA Code of Ethics: Ethical guidelines from the Franchising and Licensing Association Singapore

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Authors

Alex Denne

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