Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 3

BUSINESS CONTRACT

This Agreement made and entered into this ____day of _________, 2024 by and between
“Franchisor” a corporation duly organized and existing under the laws of the Philippines and having
its principal place of business at _______________________, Philippines (hereinafter called
“FRANCHISOR”) and Franchisee (hereinafter called “FRANCHISEE”)

WITNESSETH:

WHEREAS, FRANCHISOR is desirous of expanding its operation in sewerage services specifically


grease traps cleaning and de-clogging in the territory hereinafter specified, and

WHEREAS, FRANCHISEE desires to establish a sewerage services franchise at the location of Manila
City and the FRANCHISOR wishes to grant;

NOW, THEREFORE, it is mutually agreed as follows:

ARTICLE 1: APPOINTMENT
During the life of this Agreement, FRANCHISOR hereby appoints FRANCHISEE its rights to use their
solvents and equipment and FRANCHISEE assume and accepts such appointment.

ARTICLE 2: THE GRANT


The FRANCHISOR will solely provide the solvents, equipment and operating system for the
FRANCHISEE. The FRANCHISEE is licensed to use the products, equipment and the operating system.

The FRANCHISEE agrees to utilize the solvents, equipment and operating system in all aspects of
operation of the business.

The FRANCHISEE will offer such products and services as the FRANCHISOR shall designate and shall
be restricted from offering or selling any products or services not previously approved by the
FRANCHISOR.

ARTICLE 3: LOCATION and DESIGNATED AREA


This grant is specifically for Manila City only. The FRANCHISEE is prohibited from dealing outside the
City of Manila and with SM Malls, Robinson’s Mall and Ayala Malls within Manila City.

ARTICLE 4: CONTRACT FEE


The FRANCHISEE agrees to pay the FRANCHISOR an amount of ₱_______ as contract fee. The
contract fee enables the FRANCHISEE to enjoy the use of the FRANCHISOR’s system as well as
assistance for a limited time.
ARTICLE 5: PROHIBITION of COMPETITIVE TRANSACTION
In consideration of the rights herein granted, FRANCHISEE shall not in territory, directly or indirectly,
purchase, import, sell, distribute or otherwise deal in any product which is of the same kind as,
similar to or compete with FRANCHISOR solvents and equipment.

ARTICLE 6: RESPONSIBILITY
The FRANCHISOR will not be involved in any dispute or complaints with the FRANCHISEE’s customers
and clients. The FRANCHISEE may inquire the FRANCHISOR technical expertise to resolved the issue
or complains raised by the FRANCHISEE clients.

ARTICLE 7: INDIVIDUAL CONTRACT


Each individual contract under this Agreement shall be subject to this agreement, but such contract
shall be concluded and carried out by FRANCHISOR sale note or contract from which shall set forth
the terms, conditions, rights and obligations of the parties hereto arising from or relating to or in
connection with such contract except those stipulated in this Agreement.

ARTICLE 8: PURCHASE PAYMENT


Payment for the purchased equipment and solvents will be 50% upon order and 50% upon delivery
of the goods.

ARTICLE 9: SOLVENT and EQUIPMENT PRICE


See additional sheet

ARTICLE 10: STORAGE


Solvent and equipment should be store away from direct sunlight, high temperature and high
humidity.

ARTICLE 11: PRODUCT STORAGE


Solvent efficacy will last for 3 years if not opened. Once opened, solvent should be used within 6
months after opening.

ARTICLE 12: RETURN GOODS


Items other than defective products will not be accepted. Defects due to deterioration caused by
poor storage as stipulated in Article 9 will not be accepted.

ARTICLE 13: PROPERTY RIGHT


Product (solvent and equipment) patent, utility model, trademark, design or copyright are expressly
reserve by true and lawful owners, any dispute and/or claims arises in connection with the above
rights, FRANCHISOR shall reserve every and all rights to terminate, make null and void this
Agreement.

ARTICLE 14: OPERATIONAL PROCEDURE


The FRANCHISEE must use only the specified equipment and chemicals.
ARTICLE 15: DURATION
This Agreement shall be signed both by the FRANCHISOR and FRANCHISEE and shall remain in effect
for a period of ___ years from the first listed above. Thereafter, the FRANCHISEE must submit an
offer to renew the contract to the FRANCHISOR at least one month before the end of the ___ year
period. If there is no request for contract renewal, the contract will be considered terminated.

ARTICLE 16: RENEWAL FEE


The contract renewal fee shall be 50% of the initial contract fee.

ARTICLE 17: TERMINATION


In case there is a default by either party of any provision of this Agreement during the life of this
Agreement, the parties hereto shall first of all try to settle any matter arising from such default as
soon and amicably as possible to mutual satisfaction. Unless settlement should be reached within
thirty (30) days after notification in writing of the other party, such other party has the right to
terminate this Agreement and the loss and damages sustained thereby shall be indemnified by the
party responsible for such default.

Either party hereto has the right to terminate this Agreement without any notice to the other party
in the event od such other party’s bankruptcy, insolvency, dissolution, modification, consolidation,
receivership proceedings affecting the operation of business or discontinuation of business for any
reason and/or re-organization by the third party.

ARTICLE 18: FORCE MAJEURE


Neither party shall be liable for failure to perform whole or part of this Agreement and/or each
individual contract when such failure is due to fire, flood, strikes, labor troubles or other industrial
disturbances, inevitable accidents, war (declared or undeclared), embargoes, blockades, legal
restrictions, riots, insurrections or any other causes beyond the control of the parties hereto.

ARTICLE 19: ARBITRATION


All disputes, controversies or differences which may arise between the parties hereto, out of or in
relation to or in connection with this Agreement shall be finally settled by arbitration in Arayat,
Pampanga in accordance with the current existing laws of the Philippines. The award rendered by
the arbitrator(s) shall be final and binding upon both parties.

IN WITNESS WHEREOF, the undersigned have executed this Business Agreement effective as of the
____day of _________________, 2024.

FRANCHISOR SIGNATURE FRANCHISEE SIGNATURE


FRANCHISOR PRINTED NAME FRANCHISEE PRINTED NAME

DATE DATE

You might also like