STANDARD FORM

 

 

GARFIELD'S RESTAURANT & PUB

 

 

FRANCHISE AGREEMENT

 

between

 

Eateries, Inc.

and

_________________________

(Franchisee Name)

FOR

_________________________

(Restaurant Location)

FRANCHISE AGREEMENT

TABLE OF CONTENTS

Page

ARTICLE I 	FRANCHISE GRANT; TERM AND RENEWAL	1
1.1	Franchise Grant.	*

1.2	Initial Term.	*

1.3	Renewal.	*

1.3.1		*

1.3.2		*

1.3.3		*

1.3.4		*

1.3.5		*

1.3.6		*
**ARTICLE II 	FRANCHISE AND ADVERTISING FEES	*

2.1	Franchise Fees.	*

2.1.1	Initial Fee.	*

2.1.2	Continuing Royalty Fee.	*

2.2	Advertising Fees.	*

2.3	Form of Payment.	*
**ARTICLE III 	DUTIES OF FRANCHISOR	*

3.1	Assist Franchisee.	*

3.2	Training.	*

3.2.1		*

3.2.2		*

3.3	Informational Material.	*

3.4	Plans and Specifications.	*

3.5	Promotional Material.	*

3.6	Garfield's Operations Manual.	*

3.7	Quarterly Inspections.	*

3.8	No Third Party Reliance.	*
**ARTICLE IV DUTIES OF FRANCHISEE	*

4.1	Attendance at Training Programs.	*

4.2	Lease of Premises.	*

4.2.1		*

4.2.2		*

4.2.3		*

4.2.4		*

4.2.5		*

4.2.6		*

4.3	Construction of Restaurant.	*

4.3.1		*

4.3.2		*

4.3.3		*

4.3.4		*

4.4	Use of Premises.	*

4.5	Maintenance of Restaurant.	*

4.6	Improvements and Modifications	*

4.7	Remodeling of Restaurant.	*

4.8	Operation of Restaurant.	*

4.8.1		*

4.8.2		*

4.8.3		*

4.8.4		*

4.8.5		*

4.8.6		*

4.8.7		*

4.8.8		*

4.8.9		*

4.9	Purchase of Ingredients, Supplies, and Materials.	*

4.9.1		*

4.9.2		*

4.9.3		*

4.9.4		*

4.9.5		*

4.9.6		*

4.9.7		*

4.10	Right to Set-Off.	*

4.11	Right to Enter.	*

4.12	Accounting and Records.	*

4.12.1	Maintenance of Records.	*

4.12.2	Financial Reports.	*

4.12.3	Other Reports.	*

4.12.4	Recordation.	*

4.12.5	Examinations.	*

4.13	Liquor License.	*

4.14	No Waiver.	*
**ARTICLE V 	PROPRIETARY MARKS	*

5.1	Representations of Franchisor.	*

5.1.1		*

5.1.2		*

5.1.3		*

5.2	Agreement of Franchisee.	*

5.2.1		*

5.2.2		*

5.2.3		*

5.2.4		*

5.2.5		*

5.2.6		*

5.2.7		*

5.2.8		*

5.2.9		*

5.2.10		*

5.3	Acknowledgments of Franchisee.	*

5.3.1		*

5.3.2		*

5.3.3		*

5.3.4		*

5.3.5		*
**ARTICLE VI 	CONFIDENTIAL OPERATIONS	*

6.1	Compliance with Manual Standards.	*

6.2	Confidentiality of Manual.	*

6.3	Property of Franchisor.	*

6.4	Maintenance of Manual at Restaurants.	*
**ARTICLE VII 	CONFIDENTIAL INFORMATION	*

7.1	Proprietary Information.	*

7.1.1		*

7.1.2		*

7.1.3		*

7.2	Injunctive Relief.	*

7.3	Investments in Publicly Traded Companies.	*

7.4	Reforming Provisions.	*

7.5	Confidentiality Agreements.	*
**ARTICLE VIII USE OF NAME; ADVERTISING	*

8.1	Advertising Under Trade Name.	*

8.2	National Advertising and Marketing Program.	*

8.2.1		*

8.2.2		*

8.2.3		*

8.2.4		*

8.2.5		*

8.3	Local Advertising.	*

8.4	Cooperative Advertising Campaigns.	*

8.5	Opening Promotions.	*

8.6	Prior Approval of Franchisor.	*
**ARTICLE IX 	INSURANCE	*

9.1	Procurement of Policies.	*

9.2	Coverage and Amounts.	*

9.3	Additional Coverage.	*

9.4	Obligation Not Limited.	*

9.5	Evidence of Insurance.	*

9.6	Authority of Franchisor to Procure Insurance.	*
**ARTICLE X 	TRANSFERS OF INTEREST	*

10.1	Transfer by Franchisor.	*

10.2	Transfer by Franchisee.	*

10.2.1	Conditions on Transfer.	*

10.2.2	Consent.	*

10.2.3	No Security Interest.	*

10.3	Right of First Refusal.	*

10.3.1	Right.	*

10.3.2	Consideration.	*

10.4	Transfer Upon Death or Mental Incompetency.	*

10.5	Non-Waiver of Claims.	*

10.6	Permitted Assignments.	*
**ARTICLE XI 	DEFAULT AND TERMINATION	*

11.1	Termination by Franchisor Without Notice.	*

11.2	Termination by Franchisor with Notice.	*

11.2.1		*

11.2.2		*

11.2.3		*

11.2.4		*

11.2.5		*

11.2.6		*

11.2.7		*

11.2.8		*

11.3	Termination by Franchisor with Notice and Opportunity to Cure.	*

11.4	Termination by Franchisee.	*
**ARTICLE XII 	OBLIGATIONS UPON TERMINATION OR EXPIRATION	*

12.1	General Obligations.	*

12.1.1		*

12.1.2		*

12.1.3		*

12.1.4		*

12.1.5		*

12.1.6		*

12.1.7		*

12.1.8		*

12.1.9		*

12.1.10	*

12.1.11	*

12.2	Obligations Upon Termination by Franchisee.	*

12.3	Refund of Initial Fee Upon Termination.	*
**ARTICLE XIII AGREEMENTS	*

13.1	Best Efforts.	*

13.2	Franchisee and Principal Shareholders Agreement

	Not to Compete.	*

13.3	Franchisor Agreement Not to Compete.	*

13.3.1		*

13.3.2		*

13.3.3		*

13.4	Interference with Employment Relations.	*

13.5	Reduction of Scope of Agreement.	*

13.6	Reforming Provisions.	*
**ARTICLE XIV TAXES, PERMITS AND INDEBTEDNESS	*

14.1	Prompt Payment of Taxes.	*

14.2	Bona Fide Dispute.	*

14.3	Compliance with Laws.	*

14.4	Notification of Legal Proceedings.	*
**ARTICLE XV 	FRANCHISEE ORGANIZATION, AUTHORITY,

	AND FINANCIAL CONDITION	*

15.1	Entity Representations & Warranties.	*

15.2	Covenants.	*

15.3	Financial Statements.	*

15.4	Ownership.	*

15.5	Guarantees.	*
**ARTICLE XVI RELATIONSHIP AND INDEMNIFICATION	*

16.1	Relationship.	*

16.2	Indemnification.	*
**ARTICLE XVII GENERAL PROVISIONS	*

17.1	Request for Approval.	*

17.2	No Liability Assumed.	*

17.3	No Waiver.	*

17.4	Notices.	*

17.5	Entire Agreement.	*

17.6	Severability and Construction.	*

17.6.1		*

17.6.2		*

17.6.3		*

17.6.4		*

17.6.5		*

17.6.6		*

17.7	Remedies.	*

17.8	Force Majeure.	*

17.9	Applicable Law.	*

17.10	Final and Binding Arbitration.	*

17.11	Injunctive Relief; Venue.	*

17.12	Legal Fees.	*

17.13	Acknowledgments.	*

17.13.1	*

17.13.2	*

17.13.3	*

17.13.4	*
**SCHEDULE A		*
**SCHEDULE 15.4	*
**SCHEDULE 17.4	*
**APPENDIX A		*
**APPENDIX B AUTHORIZATION AGREEMENT FOR PRE-ARRANGED     PAYMENTS		*
**GARFIELD'S RESTAURANT & PUB********************************************