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1. Denition 2. Parties to the Agreement 3. Main clauses and sample 3.1 Object of the agreement 3.2 Territorial exclusivity 3.3 Duties of the Franchisor 3.4 Duties of the Franchisee 3.5 Franchise fees 4. Applicable Law 5. Model Agreement
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1. DEFINITION
This is a agreement for cooperation between two legally independent parties (Franchisor and Franchisee) based in different countries. The Franchisor confers to the Franchisee the exclusive right to distribute its products (or services) in establishments which are uniformly equipped and furnished, as well as the right to use industrial property rights (brands, commercial signs, trade marks), while also providing the whole KnowHow (Franchise Handbook), and the technical and commercial support for distribution to be carried out correctly. The Franchisee must follow the instructions given by the Franchisor as regards the presentation, commercialization and corporate image on the authorized premises. In recognition of the services provided, the Franchisee pays the Franchisor a series of different fees (Front-end fee, sales fee, advertising fee).
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3. MAIN CLAUSES AND SAMPLE Some of the most important clauses in the International Franchise Agreement are as follows: Object of the Agreement Territorial exclusivity Duties of the Franchisor Duties of the Franchisee Franchise fees
4. Applicable LaW
International Law standards are not applied to this type of Agreement. The parties are free to submit any conicts regarding the agreement to International Arbitration or to the Laws of the country of one of the parties. They will normally be subject to the Laws of the Franchisors country.
5. MODEL AGreeMent
In order to obtain the model agreement in Word format and the user guide, click on: International Franchise Agreement
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