Franchise Agreement Sample
FRANCHISE AGREEMENT
PARTIES This
Franchise Agreement is concluded between the parties, on one side, …………………………… residing at …………………………… address, registered in the …………………………… Trade Registry with registration number ……………, operating under the …………………………… Tax Office and tax number …………………………… (“FRANCHISOR” – GRANTOR),
and on the other side, …………………………… residing at …………………………… address, registered in the …………………………… Trade Registry with registration number ……………, operating under the …………………………… Tax Office and tax number …………………………… (“FRANCHISEE” – RECEIVER),
under the following terms and conditions.
ARTICLE 1 – SUBJECT OF THE AGREEMENT
The subject of this agreement is the granting of the right to use the Franchisee's brand, business model, know-how, product/service standards, and operating system by the Franchisor in exchange for a specified fee.
ARTICLE 2 – FRANCHISOR'S REPRESENTATIONS AND WARRANTIES
2.1. The Franchisor grants the Franchisee the right to use the brand and business system for the duration of this agreement.
2.2. The Franchisor will provide the Franchisee with necessary training, business development support, advertising, and marketing materials.
2.3. The Franchisor reserves the right to monitor the Franchisee's operations to ensure they are consistent with the brand image.
2.4. The Franchisor undertakes not to engage in activities that would harm the franchise network and not to grant another franchise in the same area in a way that would create unfair competition.
ARTICLE 3 – FRANCHISEE'S REPRESENTATIONS AND WARRANTIES
3.1. The franchisee is obligated to manage the business in accordance with the brand standards set by the franchisor.
3.2. The franchisee may not change the business concept or offer different products or services without the written consent of the franchisor.
3.3. The franchisee shall participate in the training determined by the franchisor and comply with the specified quality standards.
3.4. The franchisee undertakes to pay the franchise fee and royalty (continuing) fees on time.
3.5. The franchisee may not engage in any activities that would damage the franchisor's brand image.
ARTICLE 4 – FRANCHISE FEE AND PAYMENTS
4.1. Upon signing this agreement, the franchisee shall pay the franchisor a franchise entry fee of ……………… TL (……………… Turkish Lira) . 4.2. The franchisee shall pay a royalty fee of %…… of its monthly gross turnover . 4.3. A monthly contribution of ………… TL shall be paid for the advertising and marketing fund. 4.4. Payments shall be made to the bank account specified by the franchisor against an invoice.
ARTICLE 5 – DURATION AND TERMINATION
5.1. This agreement is valid for a period of ……… years and may be extended by mutual agreement of the parties.
5.2. If either party acts in breach of the terms of this agreement, the other party has the right to terminate it by written notice.
5.3. If the franchisee commits serious violations that damage the brand reputation, the franchisor may terminate the agreement immediately.
5.4. In case of termination, the franchisee shall immediately cease using the franchisor's trademarks and trade marks, and remove all signs, packaging, and advertising materials.
ARTICLE 6 – CONFIDENTIALITY AND NON-COMPETITION
6.1. The franchisee may not share the know-how, trade secrets, and business methods acquired from the franchisor with third parties. 6.2. The franchisee may not compete independently in the same sector for ………… years from the termination of the contract. 6.3. The confidentiality obligation continues indefinitely.
ARTICLE 7 – INSPECTION
7.1. The franchisor may regularly inspect the franchisee's operations.
7.2. Any irregularities identified during the inspection shall be rectified by the franchisee within a maximum of ………… days .
7.3. In case of persistent irregularities, the franchisor reserves the right to terminate the contract.
ARTICLE 8 – MISCELLANEOUS PROVISIONS
8.1. This agreement is also binding on the successors, heirs, and assignees of the parties.
8.2. If either party fails to notify the other in writing of a change of address, notifications sent to the addresses stated in this agreement shall be deemed valid.
8.3. This agreement cannot be transferred without the mutual written consent of the parties.
ARTICLE 9 – APPLICABLE LAW AND JURISDICTION
Turkish law shall apply to disputes arising from this agreement , and the Courts and Enforcement Offices of ……………………… shall have jurisdiction
FRANCHISOR FRANCHISEE
Name – Signature Name – Signature
YAĞMUR YORULMAZ, LAW FACULTY STUDENT
