Franchise Agreement Options

FRANCHISE AGREEMENT OPTIONS

Parties and Effective Date

Effective Date: ,

Recitals

WHEREAS, Franchisor possesses a system for the operation of a business offering specified goods and services and owns certain trademarks, trade dress, know-how, procedures and confidential business information used therein (collectively, the System); and

WHEREAS, Franchisee desires to obtain the right to operate a business under the System and to receive training, support and related rights, and Franchisor is willing to grant such rights under the terms of this Agreement and the selected Option(s);

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree to the following Franchise Agreement Options and terms.

Selection of Franchise Option(s)

Franchisee selects the following option(s). Selection of multiple options is permitted only where expressly approved in writing by Franchisor.

Initial Franchise Fee: $   Royalty: %

Units to be developed:   Initial Fee per Unit: $   Royalty: %

Territory Description:

Exclusivity Requested: Yes No   If Yes, specify limitations:

Scope of Work

Franchisor obligations and Franchisee obligations shall be as follows. The following description supplements and does not replace the operative franchise agreement to be executed.

Payment Terms

Initial Franchise Fee (due upon execution): $

Ongoing Royalty: % of gross sales, payable

Marketing / Advertising Fund Contribution: % of gross sales, remitted

Payment Method:

Late Payment: Past-due amounts shall accrue interest at % per month (or the maximum permitted by law), with a minimum late charge of $ .

Term and Termination

Term Commencement Date: ,

Initial Term Length: years.

Expiration Date (if specified): ,

Termination for Cause: Either party may terminate for material breach if the breaching party fails to cure within days after written notice.

Termination Without Cause / Non-Renewal: Either party must provide written notice of non-renewal or termination without cause at least days prior to the expiration of the then-current term.

Confidentiality

Franchisee acknowledges that Franchisor's Confidential Information includes, without limitation, trade secrets, business plans, operational methods, manuals, financial information, customer lists and marketing strategies. Franchisee shall (a) hold all Confidential Information in strict confidence; (b) not disclose such information to third parties except as expressly permitted in writing by Franchisor; and (c) use Confidential Information solely for performance under this Agreement. The obligations in this Section survive termination or expiration for years, or for the maximum period permitted by law, whichever is longer.

Governing Law

This Agreement and any dispute arising out of or related to it shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of law principles.

Entire Agreement

This document, together with the definitive Franchise Agreement and any exhibits or schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior written or oral agreements, understandings and negotiations. Any amendment must be in writing and signed by both parties to be enforceable.

Representations and Certifications

Each party represents and warrants that it has full corporate power and authority to enter into this Agreement, that the person signing on its behalf is duly authorized, and that execution, delivery and performance will not conflict with any other agreement or obligation to which it is bound.

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