Franchising: It is a method of marketing a product and/or service and/or technology. It is based on close and continuous professional cooperation between franchisor and franchisee that are different from financial and legal aspects. In this relationship; franchisor assigns the franchisee with the right and responsibility of operating franchisee’s business in accordance with franchisor’s system. Directly or indirectly, within the period and scope stated here, franchisee is given the right and obligation of using franchisor’s name or brand, know-how, operational and technical methods, and other industrial and intellectual rights through continuous administrative and technical support of the franchisor.
Franchisor is the founder and long-term administrator of the franchise system consisting of franchisor and individual franchisees.
Franchisee is the person or persons or institution purchasing the brand and operational and technical methods of franchisor within the scope, period, conditions and provisions of this contract.
Brand. It is the registered trademark of LAÇİN TATLILARI ATİYE LAÇİN (LAÇİN DESSERTS ATİYE LAÇİN.
Beginning of the contract
It is the date when the contract is read and signed between the parties.
Duration of the contract
It is … years starting from the date of beginning.
The parties had an agreement on the franchising fee of ….. $ for brand renting and information sales within the scope of growth plan.
Section 2: Provisions of the contract
1- Responsibilities of the franchisor
- Franchisor is responsible for auditing the franchisee within the scope and direction of sales method and principles of products sold under the brand of ATİYE LAÇİN and for ensuring the best service. When needed, franchisor is also responsible for rapidly solving the product-based problems of the franchisee. Procuring and preparing the system’s catalogue, price list, boxes, serviettes, and other printed materials and distributing them to franchisees for the price determined by franchisor are the responsibility of franchisor. In case of the behaviors of franchisees damaging the commercial reputation and client relations of the franchisor and if the franchisee insists on exhibiting those behaviors, in order to protect the brand and other franchisees, franchisor has the right to rescind this contract and is obliged to act in this way. Franchisor Franchisee
2- Rights of the Franchisor
- For setting and preparing the system for running and starting the establishment process, …. TL has been collected in cash on the beginning date of this contract. Franchisor has the right to audit the franchisee in terms of selling price, service quality, cleanness, and customer relations, and to draw report from computer.
3- Franchisee’s obligations
- Royalty, training, skill education, and all of the standard establishment costs are paid by franchisee. Franchisee will obey the rules set by franchisor about the business operation and order and receipts and general cleanness rules. Franchise will be running his/her business personally and serving under his/her auditing. In case of his/her absence in business due to any reason, the required sanction is imposed by assuming his/her presence. Any repetition of that can be considered as reason for termination. Franchisee is responsible for his/her business’ payments such as wages, social security support contribution, taxes, and municipality payments and debts to 3rd parties. Franchisor is not responsible for any of franchisee’s debts. If requested, franchisee is obliged to send the monthly sales report to franchisor’s headquarters at the end of every month. Franchisee must pay maximum attention to protection of franchise system’s common identity and reputation. For efficient administration of franchisor, franchisee will provide performance and financial reports, and help the franchisor with investigating the business data and records. Franchisee promises the strict confidentiality during distribution of Franchisor’s recipes, system, software, and other information and documents to 3rd parties. Franchise is not authorized to allow 3rd parties to utilize a part or whole of franchise authority. In case that it is determined that franchisee gave recipe, material and/or information and document about the system, franchisee accepts and promises to pay 50,000 USD compensation fee.
Termination and Conveyancing
- With the implicit approval of franchisor, this contract can be renewed and conveyed. In conveyance transactions, the ailenee is not considered to be a new franchisee, and the steps are taken in accordance with favor of franchisee and rules of business discipline. At the end of annual contract, if the mutual harmony and agreement is maintained, a new contract is signed. Paid fees are not refunded, because those fees are the payment for advertisements and growth. Majority of this fee is already returned to the franchisee as advertisement and expense.
In case of disease or death, franchisee will be closed with declaration of “construction” or etc. instead of bankruptcy or another disreputable reason. In case of death, when possible, a contract will be signed with new owner of the business (if he/she has enough training and experience). In case of distraint or bankruptcy, the franchisor will be immediately informed and inventory stocks will be listed. If the situation is irreversible, the signboard and visuals will be hidden immediately.
4- Rights of Franchisee
- Franchisee is authorized for using the registered brand and trademark of franchisor at the address specified here, using the brand-related banners, signboards, and advertisement instruments at business address, purchasing the needed brochure, menu, etc. printed material from the headquarters and distributing them and selling the existing and to-be-developed products by requesting from the headquarters. Franchisee is authorized to enjoy his/her rights only at the address specified here.
- In case of termination and not-renewal of this contract for any reason, the franchise cannot produce or sell any product branded under LAÇİN TATLILARI ATİYE LAÇİN (LAÇİN DESSERTS ATİYE LAÇİN). The franchisee accepts and promises to pay 50,000 USD compensation payment in case of the breach of this provision without any need for specific warning. And then franchisee will stop selling that product(s). At the end of this contract, the franchise cannot sell or rent the phone number or address to 3rd parties but will convey them to the franchisor. This contract consists of 3 pages and has been read 1 week before the signing. “GELİBOLU CRIMINAL COURTS” are authorized for solving the disputes arising from this contract.
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