1, the first article is about the agreement on the royalties of the first phase of franchise rights.
Franchise fees for the first time are divided into standard fees, discount fees for franchisees to open restaurants, extension fees, franchise store fees, increase fees for old franchisees and new franchisees to open new stores, transfer fees, etc.
2. The second article is about the agreement on the royalties that must be paid regularly during the contract period.
Royalties paid regularly are usually determined as a percentage of sales.
Article 3 is about the agreement that the franchisor grants certain rights to the franchisee. Such as the franchisor's management system and the right to use the business manual, the right to use the improved technology and business information in the franchisor's management system, and the limited right to use the franchisor's brand related to the restaurant.
Article 4 is about the agreement that the franchisor provides some support (such as training, consultation, assistance and guidance) for the franchisee.
5. Article 5 stipulates the obligations of the franchisee. *** 15, each paragraph is as follows:
Article 1 stipulates the lease of business premises. The business premises can be leased by the franchisor to the lessor and then sublet to the franchisee, or directly leased by the franchisee from the lessor. If the former method is adopted, the franchisee's use of the business premises is only related to the franchisor's rights and obligations, not to the landlord. Under the condition that the franchisee strictly performs the sublease contract, if any dispute between the landlord and the franchisor arising from the lease contract causes the franchisee to suffer losses, the franchisee may claim compensation from the franchisor; However, if the latter method is adopted, the franchisee's use of the business premises is only related to the rights and obligations of the owner. If the franchisee's breach of the lease contract causes the owner's lawsuit involving the franchisor's brand and the franchisor suffers losses, the franchisor may demand corresponding compensation from the franchisee.
The second paragraph stipulates that the franchisee's business activities shall always abide by the provisions of laws and regulations, go through all necessary procedures and bear the expenses; Abide by the specifications, standards and procedures required and suggested in the operation manual, and make timely adjustments and modifications with the update and improvement of the operation manual, in line with the franchisor's quality control standards; Do not disclose or allow others to copy the contents of the operation manual.
The third paragraph stipulates that the franchisee shall bear all taxes and fees arising from business activities and handle some insurance items according to the requirements of the franchisor.
Paragraph 4 stipulates that the franchisee shall not directly or indirectly engage in any other identical or similar business activities during the existence of the contractual relationship, and the amount of compensation to be paid in violation of this clause.
Article 5 stipulates the payment method of the term use fee of the franchise right.
The sixth paragraph stipulates that the franchisee shall report the sales situation to the franchisor at the agreed time and record the sales and business situation in the franchisee system in the prescribed way.
Paragraph 7 stipulates that the franchisor has the right to go to the franchisee's business premises to check the franchisee's business conditions, consult, audit and copy the franchisee's records without prior notice.
Article 8 stipulates the punishment measures for the franchisee's underreporting of sales.
Article 9 stipulates the payment method of advertising fees. Advertising fee is not a simple problem in franchising. Franchisors and franchisees are unwilling to bear the risks that advertising investment may bring. If franchisees are allowed to bear the advertising expenses alone, and there are many franchisees, it is hard to say whether each franchisee can provide services with good quality and quantity without affecting advertising. Moreover, the amount of advertising expenses is so huge that franchisees are bound to be unable to bear it alone. However, if the franchisee is allowed to bear the advertising expenses, it is to promote the franchisor's brand and invest at his own expense. It's hard to say whether it can play a promotional role or get a return. Sometimes, because the franchisor's own brand value is low, advertising investment will become a waste. Therefore, if franchisees are allowed to bear the advertising expenses, they will also have doubts. A satisfactory solution adopted in this contract is that the franchisor and the franchisee agree to set up an advertising fund account, and the franchisee extracts an agreed proportion from the weekly sales as advertising fees and remits them into the advertising fund account. As for the specific advertising method, the franchisor will negotiate with the advertiser according to the amount in the advertising fund account. In this way, neither the franchisor nor the franchisee needs to prepare a large amount of funds for advertising in advance, and the franchisee has also adopted a way of paying advertising fees without funds and risks. If the franchisees are in good operating condition, they will pay more advertising fees, and vice versa. However, the problem in this way is that if the franchisor uses part or even all of the funds in the advertising fund account for other purposes, it will indirectly increase the regular royalties of the franchisee, which will undoubtedly infringe on the interests of the franchisee.