FRANCHISE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This agreement made and executed by and between:
Luxe Society USA a Corporation existing under _______ (Country
name) laws with principal office at ______________________________
hereinafter referred to as the FIRST PARTY.
-andLuxe

Society

UK

__________(Country)___________,

a
with

corporation
principal

of

the

address

at

_______________________________ hereinafter referred to as the

SECOND PARTY.

WHEREAS, the FIRST PARTY is a duly organized business entity under the
domestic laws of the ___________________(Country)______________ and is
engage in the business of franchise marketing service & Consultancy.
WHEREAS, the FIRST PARTY hereby agrees to enter into a FRANCHISE
Agreement with the SECOND PARTY in the settings of a franchise outlet
particularly describe as follows
Franchise:
________________________________________________________________________
___________________________________________________________________
_____
According to the preferred area of the SECOND PARTY subject to the
availability of the commercial areas, without prejudice to any proposal by the
FIRST PARTY deemed best for the SECOND PARTYS interest;
NOW, THEREFORE, for and in consideration of the foregoing premises, the
parties have agreed to strictly comply with the following terms and
conditions, to wit:
1. The FIRST PARTY hereby awards the Franchise Rights to the SECOND
PARTY commencing on the signing thereof.

2. Franchise fee The Franchise Fee shall be______________________

($_________________________) for the establishment and operation of one
(1) Franchise outlet. Further, Franchise Fee shall form and part of
Business Consultation effective form signing of this contract. Franchise
fee is non-refundable.
3. Duration This agreement shall be effective for a period of _______
(_______) years. The commencement of the __________ (_______) year
period shall be reckoned from the date of opening or upon delivery by
mail. Upon signing of the Franchise outlet. The Franchise Agreement
shall be renewable with less (50%) fifty percent franchise fee based on
the prevailing market value.
4. Exclusivity of Franchise Location The FIRST PARTY shall not set-up
another Franchise outlet within the Five Hundred Meter (500) radius of
the SECOND PARTYS designated location. Exemptions to this are
outlets located within buildings, schools and malls.
5. Provisions
a. The SECOND PARTY shall provide the following:
i.

Needed personnel source out through the First Partys accredited

manpower Agency

6.

ii.

Store Space

iii.

All necessary equipment not included in the Franchise Fee.

Gross Revenue Sharing Gross revenue sharing shall be collected and

sharing will be as follows:

a. All collected royalty fees shall be deposited by the SECOND PARTY
every 5th

of the Month or to be collected by the designated

Franchise Officer of the FIRST PARTY upon the latters option:

b. Any Joint ventures or events successfully completed would have a 50-50

profit split. Events would include, product sales, membership fees,
commissions, or anything that generates profit.
c. First Party is to receive 60% of all profits for the first 3 calendar months, if
the second partys profits is more than 1000 pounds. 3 months thereafter,
the first party is to receive 25% as royalty fees.

7.

Exclusivity clause SECOND PARTY agrees that all products/ services

and other such products services bearing the FIRST PARTY or its
accredited suppliers
8.

Use of Name and System During the effectivity of this Franchise

agreement, the SECOND PARTY can use the said franchise name/s,
business system and engage in all business transaction related to the
products and services carried by the FIRST PARTY.
9. Transfer of Technology FIRST PARTY shall keep abreast the SECOND
PARTY ON THE CONTINOUS DEVELOPMENT OF Products or Services and
transfer thereof, including product development, for the benefit of the
SECOND PARTY. Upon signing of this agreement, it is understood that
trade secrets and business system have been transferred to the SECOND
PARTY by way of orientations and receipt of a copy of Business Manual of
Orientations for this purpose.
10. Manpower Support- FIRST PARTY shall provide manpower thru
__________________. Salaries and mandatory benefits shall be borne by the
SECOND PARTY.
11. Marketing Consultation _____________________ shall assist the SECOND
PARTY in the formulation of a local marketing plan.
12. Insurance The SECOND PARTY shall produce comprehensive fire
coverage for the equipment and all other parts thereof.
13. Supplies All supplies or direct material and/or additional equipment
needed by the SECOND PARTY can only be bought from the FIRST PARTY
or its accredited suppliers, upon due notice to FIRST PARTY.
14. Right of First Option- The SECOND PARTY shall be given the right of
first option to select location of another franchise in the same location.
15. Transferability of Franchise- the SECOND PARTY may assign or transfer
the franchise provided the transferee possesses all the qualifications set
by the FIRST PARTY. This right shall be exercise by the FIRST PARTY before
termination of the contract expiration of Franchise Agreement.
16. Maintenance Clause- The SECOND PARTY shall be responsible to
maintain its outlet in accordance to the FIRST PARTYS standard of

operations. SECOND PARTY shall be responsible for all modifications,

upgraded and maintenance needed by the outlet based upon the FIRST
PARTY/S recommendation.
17. Termination of Contract the Franchise Agreement may be terminated
only after _____ (______) years of operation. The FIRST PARTY has the sole
authority to terminate the agreement even on the earlier date. The right
to the FIRST PARTY to terminate the agreement may arise only if the
SECOND PARTY violates any or all standard operating procedures set forth
on this contract, in particular payment of royalty fees or other accounts
due to the former. The termination shall be done after thirty (30) days
notice of termination. If the SECOND PARTY wishes to terminate this
agreement prior to the franchise period, he/she shall be charge half (1/2)
of the amount of the franchise fees unless the SECOND PARTY exercised
his option under paragraph 15 which is a mandatory requirement before
any termination be undertaken.
18. Post- Contract Clause within three (3) years after the expiration of
the term of this agreement, the SECOND PARTY undertake not to engage
in similar business of the FIRST PARTY.
19. Venue All action or actions arising or in connection with the foregoing
agreement shall be filled exclusively at the proper courts of _____________.
20. Miscellaneous- The first and the second party are to meet in person or
over any digital medium, as the case may be. They may decide to allocate
a certain amount of budget to joint ventures.
The second party is to allocate an appropriate amount of profit back into
the franchise in order to continue in advance.
Both parties are expected to maintain a high level of professionalism and
keep in accordance with the goals of the franchise.
Both parties are also required to meet quarterly to go over their goals,
strategies and updates.
20. Other matters All other matters not covered by this agreement shall
be subject to the agreement in writing by the parties.

IN WITNESS WHEREOF, the parties have signed this Franchise Agreement on

________________ at ________________.
[NAME OF FIRST PARTY]

[NAME OF SECOND PARTY]

FIRST PARTY

SECOND PARTY
Signed in the presence of:

[WITNESS]

[WITNESS]