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What is Service Franchise Agreement?
Service Franchise Agreement Governs the relationship between a franchisor and a service franchisee, detailing services, fees, royalties, and franchisee obligations.
Sample template:
SERVICE FRANCHISE AGREEMENT
This Service Franchise Agreement (the "Agreement") is made and entered into as of this [date], between Express Tech Services Inc. ("Franchisor"), and QuickFix Solutions LLC ("Franchisee").
1. GRANT OF FRANCHISE
1.1. License Grant
Franchisor grants to Franchisee a non-exclusive, non-transferable license to operate a franchised business offering technology and repair services (the "Franchised Services") under the Express Tech Services Inc. system (the "System"), and use of its associated trademarks, trade names, service marks, logos, and commercial symbols (collectively, the "Marks"), in accordance with the terms and conditions of this Agreement, and in the territory defined in Exhibit A (the "Territory").
2. FRANCHISOR SUPPORT
2.1. Initial Training and Assistance
Franchisor shall provide Franchisee with initial training in the operation of the business, including but not limited to marketing, financial management, technical support, and customer service. Franchisor shall also provide Franchisee with an operations manual (the "Manual") to guide operation and maintenance of the Franchised Services. The Manual shall at all times remain the property of Franchisor and shall be returned upon termination or expiration of this Agreement.
2.2. Ongoing Support
Franchisor shall provide Franchisee with ongoing support, including marketing and promotional materials, periodic updates to the Manual, and access to Franchisor's customer service and technical support staff via telephone or email during regular business hours.
3. FEES
3.1. Initial Franchise Fee
Franchisee shall pay to Franchisor an initial franchise fee in the amount of $________ (the "Initial Fee") upon execution of this Agreement. The Initial Fee shall be deemed fully earned and non-refundable upon payment.
3.2. Royalties
Franchisee shall pay to Franchisor a royalty fee equal to _____% of the Franchisee's gross revenues derived from the operation of the franchised business (the "Royalty"). Royalties shall be paid on a monthly basis, and shall be due on or before the 10th day of the following month.
3.3. Advertising Fund Contribution
Franchisee shall contribute _____% of Franchisee's gross revenues (the "Advertising Fund Contribution") to an advertising and marketing fund (the "Fund") managed by Franchisor. The Advertising Fund Contribution shall be used solely for the development and placement of advertising and marketing materials for the System in local, regional, or national markets, as determined by Franchisor in its sole discretion.
4. FRANCHISEE OBLIGATIONS
4.1. Compliance with System and Manual
Franchisee shall operate the Franchised Services in strict compliance with the System, the Manual, and any other written policies or procedures provided by Franchisor from time to time.
4.2. Quality Assurance and Inspection
Franchisee shall maintain the quality of the Franchised Services at or above the standards set forth in the System and the Manual, and in compliance with all laws, regulations, and industry standards. Franchisee shall permit Franchisor or its authorized representatives to inspect the Franchised Services at any time to confirm compliance with the System and the Manual.
4.3. Required Insurance
Franchisee shall maintain, at its own expense, general liability, property, and workers' compensation insurance with the minimum coverage limits required by Franchisor. Franchisee shall name Franchisor as an additional insured on all such policies, and shall provide Franchisor with certificates of insurance evidencing such coverage.
5. TERM AND TERMINATION
5.1. Term
The term of this Agreement shall be ____ years from the Effective Date, unless earlier terminated in accordance with the provisions of this Agreement.
5.2. Termination by Franchisor
Franchisor may terminate this Agreement upon written notice to Franchisee if Franchisee breaches any material term or condition of this Agreement and fails to cure such breach within thirty (30) days after receiving written notice from Franchisor specifying the nature of the breach.
5.3. Termination by Franchisee
Franchisee may terminate this Agreement without cause upon providing Franchisor with not less than ninety (90) days prior written notice of its intent to terminate.
6. GOVERNING LAW AND DISPUTE RESOLUTION
6.1. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the United States and the laws of the State in which the Franchised Services are located, without giving effect to any conflict of law principles.
6.2. Dispute Resolution
Any dispute, claim or controversy arising out of or relating to this Agreement, the breach, termination, enforcement, interpretation or validity thereof, or the Franchised Services, shall be resolved by binding arbitration administered by the American Arbitration Association. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate and intend to be legally bound as of the date first above written.
______________________________
Express Tech Services Inc.
By: __________________________
Name: ________________________
Title: _______________________
______________________________
QuickFix Solutions LLC
By:___________________________
Name: ________________________
Title: _______________________
Common Sections of a Service Franchise Agreement
In this Service Franchise Agreement, you will see the following sections:
- Grant of Franchise
- Franchisor Support
- Fees
- Franchisee Obligations
- Term and Termination
- Governing Law and Dispute Resolution
Summary of each section:
- Grant of Franchise : This section explains that the Franchisor is giving the Franchisee permission to use their brand, trademarks, and business system to operate a technology and repair services business in a specific area. Think of it like a parent giving their child permission to use their car, but only in a certain neighborhood.
- Franchisor Support : This part outlines the support the Franchisor will provide to the Franchisee, such as initial training, an operations manual, and ongoing assistance. It's like a teacher providing a student with textbooks, lessons, and extra help when needed.
- Fees : This section details the various fees the Franchisee must pay to the Franchisor, including an initial franchise fee, ongoing royalty fees based on a percentage of the Franchisee's revenue, and contributions to an advertising fund. It's like paying rent and a share of your income to your landlord in exchange for living in their property and benefiting from their services.
- Franchisee Obligations : This part lists the responsibilities of the Franchisee, such as following the Franchisor's system and manual, maintaining quality standards, allowing inspections, and carrying insurance. It's like a tenant agreeing to follow the rules of their apartment building and keep their unit in good condition.
- Term and Termination : This section sets the length of the agreement and the conditions under which it can be terminated by either party. It's like a lease agreement specifying how long you can live in an apartment and the reasons you or your landlord can end the lease early.
- Governing Law and Dispute Resolution : This part states that the agreement is governed by the laws of the United States and the state where the Franchised Services are located. It also explains that any disputes will be resolved through binding arbitration. It's like agreeing to follow the rules of your city and state, and to settle any disagreements with your landlord through a neutral third party.
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