Terms and Conditions
Last Updated: [Date]
These Terms and Conditions ("Agreement") set forth the rights, obligations, and responsibilities between the Franchisee ("You") and [Franchisor Company Name], a company incorporated under the laws of [Country/State], having its principal place of business at [Address] ("Franchisor").
1. Grant of Franchise
The Franchisor grants the Franchisee a non-exclusive, non-transferable license to operate a [Brand Name] tea outlet at the agreed location under the brand and business model of the Franchisor.
2. Franchise Fee and Royalties
- An initial, non-refundable franchise fee of [Amount] is payable upon signing this Agreement.
- Ongoing royalty fees of [Percentage]% of monthly gross sales are to be paid by the [Xth] of each month.
3. Term and Renewal
- The initial term of this Agreement is [X] years.
- Renewal is subject to mutual agreement and performance review, with an applicable renewal fee of [Amount].
4. Training and Support
- The Franchisor shall provide initial training covering operations, marketing, and customer service.
- Ongoing support will be available for the duration of the Agreement, including operational guidance and periodic audits.
5. Brand Usage
- The Franchisee must use all brand elements (logos, recipes, marketing materials) as per Franchisor guidelines.
- Unauthorized modification of branding or menu is strictly prohibited.
6. Product Sourcing
Franchisee agrees to purchase core products and ingredients only from authorized suppliers or directly from the Franchisor.
7. Operational Standards
- Franchisee must maintain the hygiene, quality, and customer service standards prescribed by the Franchisor.
- Regular inspections may be conducted.
8. Marketing and Promotion
- Franchisee must participate in national and regional marketing campaigns initiated by the Franchisor.
- A local marketing budget of [X]% of monthly gross sales must be allocated.
9. Termination
This Agreement may be terminated under the following conditions:
- Breach of contract
- Non-payment of fees or royalties
- Failure to meet performance standards
- Voluntary closure or insolvency
10. Post-Term Obligations
Upon termination:
- Franchisee must cease using the brand name and return all proprietary materials.
- Non-compete clause applies for [X] years within [X] kilometers/miles of the location.
11. Confidentiality
Franchisee agrees to maintain confidentiality of all trade secrets, recipes, and business strategies shared during and after the term of the Agreement.
12. Dispute Resolution
Any disputes arising from this Agreement shall be resolved through mediation. If unresolved, the matter will be settled in the courts of [Jurisdiction].
13. Miscellaneous
- This Agreement represents the entire understanding between the parties.
- No amendment or waiver shall be valid unless in writing and signed by both parties.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Franchisor Company Name]
Signature: ______________________
Name:
Title:
[Franchisee Name]
Signature: ______________________
Name:
Title: