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This is a model of a contract for cooperation between two legally independent companies: the Franchisor and the Franchisee. By means of this contract, the Franchisor confers to the Franchisee the exclusive right to distribute its products/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 Know-How (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 the services provided, the Franchisee pays the Franchisor a series of different fees (front-end fee, sales fee, advertising fee).
In the most relevant aspects of the contract (Industrial Property Rights, premises, territorial exclusivity, general sales conditions, price lists, etc.) there is a number of suggested text options, and there are also Annexes with additional information.
The model is designed for international franchises, but with a few slight modifications it may also be used for franchises at a national level. It is equally appropriate for product franchises (foodstuffs, cosmetics, decoration, fashion, textiles, etc.) and services (real estate, consultancies, financial services, internet, cleaning services, catering, etc.).
This contract model conforms to UNIDROIT (Unification of Private Law) principles and to the procedures set out by the International Chamber of Commerce for international franchise contracts.
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