FRANCHISE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Agreement is entered into by and between:

SAMJANG FOOD INC. a corporation duly licensed by the authorities with office address at 5G Building
Mac Arthur Highway Dolores City of San Fernando, Pampanga, herein after referred to as the
“FRANCHISOR”,

-and-

SHANNYLYN C. REYES, of legal age, single and residing at #1328 Solano St. Calapacuan, Subic,
Zambales herein after referred to as “FRANCHISEE”

WITNESSETH:

WHEREAS, the FRANCHISOR is in the food retail business under the duly registered name of
SAMJANG, hereinafter referred to as the TRADE NAME.

WHEREAS, the FRANCHISOR is the sole and exclusive owner of the entire right, title and interest
together with the goodwill, connected with, in and to the name SAMJANG.

WHEREAS, the FRANCHISOR is offering to qualify individuals or entities franchises to allow the use of
the TRADE NAME.

WHEREAS, in connection therewith, FRANCHISOR has by maintenance of uniformity and high

standards of quality and service, established a reputation, demand and goodwill of said foodservice
outlets and facilities operated under such a system and in its name;

WHEREAS, the FRANCHISEE has indicated the desire to operate a food retail business using the
TRADE NAME at National Highway San Roque, Castillejos, Zambales.

NOW THEREFORE, for an in consideration of the foregoing premises a mutual covenant hereinafter
specified, the parties hereto agree as follows:

I – GRANT OF FRANCHISE, FRANCHISE FEE, AND ROYALTY FEE

The FRANCHISOR hereby grants to the FRANCHISEE the franchise, authority and privilege to operate
a food retail business using the TRADE NAME for a franchise fee of ONE HUNDRED NINETY NINE
THOUSAND PESOS(Php199,000.00), Philippine currency, payable upon signing of this Franchise
Agreement;

The franchise granted under this agreement is NON-TRANSFERRABLE NOT REFUNDABLE, in whole
or in part for any reason whatsoever.

FRANCHISEE shall pay to FRANCHISOR a monthly royalty equivalent to a flat rate of Two thousand
pesos (Php2,000.00) effective on the first month of business operation.

II – EFFECTIVITY/RENEWAL

The Franchise Agreement shall be effective and in force for a period of Three (3) Years from
The date of signing of this agreement, unless sooner terminated as hereunder provided. If
FRANCHISEE has faithfully observed and performed all its obligations hereunder, FRANCHISEE may
renew its franchise under the same terms and condition as those on which new franchises are then
being.

III – EXCLUSIVITY OF FRANCHISE AREA

The Exclusive area under this franchise agreement shall be a radius of 2 kilometers from the
FRANCHISEE stall location meaning the FRANCHISOR cannot grant any other franchise except
where there is a shopping mall within the said area, in which case another franchise could be granted
by the FRANCHISOR;

IV – STORE SPACE/EQUIPMENT

The FRANCHISEE shall provide its own store space and other equipment required for the operation of
the franchise granted herein.

V – EXCLUSIVITY OF SUPPLY/SERVICES

The FRANCHISEE agrees and undertakes to source the materials such as Besty Box, Drink Cupsm
Sandwich wrapper and all the sauces that we use exclusively from the FRANCHISOR or its accredited
suppliers to ensure consistency of the quality of the food served under the TRADE NAME. All
purchases made by the FRANCHISOR shall be at prices established by FRANCHISOR and in effect at
the time of order. Prices are subject to change by FRANCHISOR to FRANCHISEE.

FRANCHISEE is not allowed to serve or sell any products not listed in the menu provided by the
FRANCHISOR.

VI – MARKETING STRATEGY/TECHNOLOGY/CONSULTATION

The FRANCHISOR guarantees and commits to provide and make available to the FRANCHISEE any
new technology relative to product development and the mode of service for our customers.

The FRANCHISOR shall assist the FRANCHISEE in the formulation of marketing strategy that would
enhance the latter’s business operations relative to the franchise.

The FRANCHISOR shall make available to the FRANCHISEE such services and business advices
geared toward the development of the latter’s operations.

The FRANCHISEE undertakes and commits to maintain its operations in accordance with the
standards set forth by the FRANCHISOR, including but not limited to store layout, food service norms
and the like.

VII – INSURANCE

The FRANCHISEE shall be responsible for obtaining insurance, at its own and exclusive expense,
against fire and other risks relative to the operations of the franchise.

VIII – TERMINATION OF AGREEMENT/CONDITION

This Franchise agreement can be terminated prior to the expiration of the term provided under Clause II
above by the FRANCHISOR in the event of violation by the FRANCHISEE of any provision herein.

Other party may terminate this franchise agreement by giving the other party written notice thirty (30)
days prior to the desired date of termination; provided that such termination is without prejudice to any
right either party may have against the other party;
IX – ARBITRATION

In case of conflict the parties herein agree to submit to arbitration by an Arbitration Committee whose
decision the parties agree to abide with. The Arbitration Committee shall compose of three members
with each party nominating a member and the nominated members to nominate a third member who
will be arbitration committee’s chair.

In case the Arbitration Committee fails to resolve any conflict brought before it, all litigation shall be filed
within the competent courts in Pampanga.

IN WITNESS WHEREOF, the parties have hereto executed this Agreement this day 11 of February,
2021.

SHANNYLYN C. REYES SAMJANG FOOD INC.

FRANCHISEE

By:

Name: Lianca Mia Valerio

Title: Chairman

By:

Name: Carlo Jan Eli Valerio

Title: Corporate Secretary

Signed in the presence of: Richard B. Gonzaga Jr. Ralph Julian Z. Baluyot

ACKNOWLEDGEMENT

Republic of the Philippines )

Province of Pampanga ) S.S
City of San Fernando )

I certify that on this ___ day of ______________ 2020, before me, a Notary Public duly
authorized in the city named above to take acknowledgments, personally appeared both parties who
were identified by me through competent evidence to be the same persons described in the forgoing
franchise agreement consisting of three (3) pages including this page, who acknowledged before me
that their respective signatures on the instrument were voluntarily affixed by them for the purposes
stated therein, and who declared to me that they have executed the instrument as their free and
voluntary act and deed and that they have authority to sign on behalf of their respective principals.

IN WITNESS WHEREOF, I hereunto set my hand and affix my notarial seal on the date and place
above written.

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