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Singapore
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Franchise Disclosure Agreement

Franchise Disclosure Agreement Template for Singapore

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Key Requirements PROMPT example:

Franchise Disclosure Agreement

"Need a Franchise Disclosure Agreement for my established bubble tea chain in Singapore, planning to expand locally with 5 new franchisees by March 2025, must include detailed training program requirements and proprietary recipe protection clauses."

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What is a Franchise Disclosure Agreement?

The Franchise Disclosure Agreement serves as a crucial pre-contractual document in Singapore's franchising landscape. Although Singapore doesn't maNDAte specific franchise disclosure requirements, this document follows international best practices and the FLA Singapore's guidelines. It is typically provided to potential franchisees before signing a franchise agreement, containing detailed information about the franchise system, financial requirements, operational procedures, and the franchisor's business history. This document helps ensure transparency in franchise transactions and protects both parties by providing clear, comprehensive information about the franchise opportunity.

What sections should be included in a Franchise Disclosure Agreement?

1. Parties: Identification and details of the franchisor and potential franchisee

2. Background: Context of the disclosure agreement and franchise opportunity

3. Definitions: Key terms used tHRoughout the agreement

4. Franchisor Information: Corporate information, business experience, and litigation history

5. Business System Description: Details of the franchise system, trademark rights, and operational requirements

6. Financial Information: Initial investments, fees, and estimated operational costs

7. Obligations: Respective responsibilities of franchisor and franchisee

8. Territory Rights: Geographical limitations and exclusivity terms

9. Confidentiality: Protection of disclosed information

What sections are optional to include in a Franchise Disclosure Agreement?

1. Training Programs: Details of available training programs when specific training requirements exist

2. Financing Arrangements: Available financing options when franchisor offers financing

3. Purchase Requirements: MaNDAtory supplier relationships and requirements when specific supplier arrangements exist

What schedules should be included in a Franchise Disclosure Agreement?

1. Financial Statements: Audited financial statements of the franchisor

2. Operations Manual Table of Contents: Overview of operational procedures

3. List of Current Franchisees: Contact information for existing franchise network

4. Territory Map: Visual representation of territorial rights

5. Sample Franchise Agreement: Template of the actual franchise agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions
































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Industries

Competition Act (Cap. 50B): Primary legislation ensuring fair competition and preventing anti-competitive practices. Particularly relevant for territorial restrictions and franchise pricing policies.

Trade Marks Act (Cap. 332): Governs the protection of intellectual property rights and the licensing of trademarks in franchise agreements.

Personal Data Protection Act 2012 (PDPA): Regulates the handling of customer and franchisee data, including privacy policies and data protection obligations in franchise operations.

Unfair Contract Terms Act (Cap. 396): Ensures fairness in contractual terms and protects against unreasonable exclusion clauses in franchise agreements.

Franchising and Licensing Code of Ethics: Voluntary code established by Franchising and Licensing Association (FLA) Singapore, providing best practices for franchise disclosure.

Consumer Protection (Fair Trading) Act: Protects against unfair practices and governs customer-facing aspects of franchise operations.

Contract Law: Common law principles governing the formation and enforcement of contracts, fundamental to franchise agreements.

Companies Act (Cap. 50): Outlines corporate structure requirements and registration obligations for franchise businesses.

Employment Act: Governs employment relationships and staff training requirements within franchise operations.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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