FRANCHISE AGREEMENT
This AGREEMENT entered into on the ______ day of ____________, 20____,
BETWEEN ____________________ Limited, a Company incorporated under the Companies Act, 1956 or the Companies Act, 2013, having its Registered Office at ____________________, represented herein by its ____________, Shri ____________________ (hereinafter referred to as "XYZ Limited", which expression shall, whenever the context so requires or admits, mean and include its successors and assigns) of the ONE PART;
AND
M/s ____________________, a Partnership Firm, having its place of business at ____________________, represented herein by its Partner Shri ____________________ (hereinafter referred to as the "AGENT", which expression shall, unless the context so requires or admits, mean and include its Partners for the time being, their heirs, legal representatives, executors and permitted assigns) of the OTHER PART.
WHEREAS XYZ Limited is engaged, inter alia, in the business of marketing ____________ products, and is the owner of the trade name and trademark "XYZ";
WHEREAS XYZ Limited is desirous of promoting ____________ products under its trade name and trademark by setting up a chain of retail outlets all over the country on its own, as also by appointing stockists, retailers and franchisees for the purpose of setting up retail outlets;
WHEREAS the Agent has offered to set up one such Retail Outlet in the City of ____________, and has represented to XYZ Limited that it is in a position to invest the necessary capital, and is also possessed of suitable premises to set up and carry on the Retail Outlet, and XYZ Limited has accepted the said offer;
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
That in consideration of the foregoing, the Company hereby appoints M/s ____________ as its Agent in the City of ____________, upon the following terms and conditions:
1. The retail outlet for marketing ____________ products under the name and style of "XYZ" shall be set up and run in the premises made available by the Agent, which premises is more fully described in the Schedule ("Premises"). The premises will be made available free of cost or charges to XYZ Limited by the Agent during the subsistence of this Agreement.
2. The Agent will meet and bear the entire cost of furnishing and decorating the interior and exterior of the Schedule Premises in accordance with the specifications and requirements of XYZ Limited, particularly touching upon the following aspects — elevation, décor and interior design, selection of furniture, fittings, counters and stands, lighting system, illumination, mannequins, window display, air-conditioning, fire-fighting equipment, furnishings, flooring, etc. — the cost of which is estimated to be of the order of Rs. ____________ (Rupees ____________). He shall also provide necessary warehousing facilities and office space for the Company's representatives.
3. The name of the shop shall be promptly and clearly displayed as ____________________.
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