Академический Документы
Профессиональный Документы
Культура Документы
engaged
or
Definition of Terms
2.1
Franchise Agreement is a written contract or
agreement between two or more parties by which a
Franchisor grants the Franchisee the right to engage in
the business of offering, selling, or distributing
goods
or
services
under
a
marketing
plan/system/concept,
for
a
certain
consideration.
Unless otherwise provided, said right includes the use
of a trademark, service mark, trade name / business
name,
know-how,
logo-type
advertising,
or
other
commercial
symbols
associated
with
a
particular
business.
2.2
Franchisor is a person, individual or a
Corporation, duly registered with the Department of
Trade and Industry (DTI) or the Security Exchange
Commission (SEC).
2.3
Franchisee is a person, individual or a
Corporation duly registered with the Department of
Trade and Industry (DTI) or the Security Exchange
Commission (SEC)
2.4
Franchise Disclosure Information refers to a
set of information and documents that needs to be
disclosed by the Franchisor to the Franchisee and / or
prospective Franchisee.
3.
Due Diligence to be undertaken by a prospective
Franchisee
Before a person decides to engage in or acquires a
franchise business, due diligence should be done by the
prospective franchisee.
3.1
Secure or ask Disclosure Information for the
Franchisor as follows:
3.1.1
Business address, email address, internet home
page / website, fax numbers and other contact details
3.1.2
3.1.3
Parent companies and affiliates, if any, and
their
respective
roles
in
the
Franchise,
and
Franchisors declaration if any affiliate is a supplier
and what they will supply
3.1.4
Names of the Board of Directors and officers
with a brief description of their qualifications and
background, ownership of interests and references
3.1.5
The contact number and business location of
existing Franchisees
3.1.6
3.1.7
Description of the business concept, which
includes brand image, brand personality, unique selling
proposition, target market, mission and vision, among
others
3.1.8
Basic information on training, commercial and /
or technical assistance
3.1.9
Certificate that the Franchisor is a member in
good standing of any Franchisor Association and that
the Franchisor has not pending administrative, civil or
criminal case
3.1.10
Declaration of the Initial Fee, amount that
will be collected and services covering these fees
3.1.11
Training that will be provided, number of
persons, how long and training modules
3.1.12
Number of years Company has operated and
number of years it has franchised with corresponding
numbers of company owned branches and franchised
outlets
3.1.13
3.1.14
Full disclosure of the Financial requirements
of the franchise business
3.1.15
A provision that requires the franchise
applicant to seek adequate legal and financial counsel
before signing the Franchise agreement
3.1.16
3.2
3.2.1
Franchisor Association (FIFA Filipino
International Franchise Association 995.0734)
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
4.
Franchise Consultant
Self-Policing of Members
6.
Publication