Establish Statutory Agreements

4A Am. Jur. Legal Forms 2d § 50:6

American Jurisprudence Legal Forms 2d | May 2019 Update

Chapter 50. Business Franchises

II. Basic franchise agreements

§ 50:6. Form Drafting guide— Checklist—Drafting Franchise agreement

Summary | Correlation Table

Checklist of matters that should be considered in drafting a franchise agreement:

   • Franchisor.

  — Name.

  — Address.

  • Franchisee.

  — Name.

  — Address.

  • Nature and extents of rights granted to franchisee.

  — Duration of franchise period.

  — Exclusiveness of franchise.

  — Authorized use of trademark.

  • Description of franchise territory.

  — Geographic boundaries.

  — Demographic considerations.

  • Franchisee’s form of business.

  — Corporation.

  — Limited Liability Company.

  — Partnership.

  — Sole proprietorship.

  • Payment by franchisee.

  — Royalty fee.

  — Service fees.

  — Advertising fees.

  — Amount of fees returnable on termination of agreement.

  • Preliminary duties of franchisor.

  — Construction of business premises.

  — Lease of business premises.

  — Feasibility studies for market area.

  — Training of franchisee.

  • Continuing duties of franchisor.

  — Training of new personnel.

  — Providing new information.

  — Guidance in business decisions.

  — Product improvement.

  • Duties of franchisee.

  — Maintaining standard of quality.

  — Business promotion.

  — Maintaining competent employees.

  — Attendance at regional meetings.

  — Notification of franchisor of financial difficulties.

  — Maintenance of trade secrets.

  — Agreement not to compete with franchisor.

  • Quality control.

  — Operating manual.

  — Franchisor’s approval of franchisee’s employees.

  — Inspection by franchisor.

  — Requirements as to supplies, ingredients, and equipment.

  — Antitrust problems regarding extent of controls.

  • Advertising.

  — Promotional advertising.

  — Continuing fees for advertising.

  — Advertising fund.

  • Assignment or other transfer of franchise by franchisee.

  — Approval by franchisor.

  — Time in which franchisor must approve.

  — Requirements for assignees or transferees.

  • Renewal of agreement.

  — Notice of intent to renew.

  — Renewal fee.

  • Termination.

  — Definition of breach or default.

  — Notice of termination.

  — Refunds to franchisee on termination.

  — Statutory regulation of termination.

  • Arbitration of disputes or other method of alternative dispute resolution.

  • Severability of contract provisions.

  • Choice of law for interpretation of contract.

  • Compliance with all applicable state and federal regulations prior to execution of contract.

  • Effective date of agreement.

  • Date of execution of agreement.

  • Signatures of parties.

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