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Assignment Of Franchise Agreement
"I need an Assignment of Franchise Agreement for transferring my Auckland-based coffee shop franchise to a new operator by March 2025, with specific provisions for maintaining existing staff and a 3-month training period."
1. Parties: Identifies the current franchisee (assignor), new franchisee (assignee), and franchisor
2. Background: Explains the existing franchise agreement, reason for assignment, and context of the transfer
3. Definitions: Defines key terms used throughout the agreement, including references to the original franchise agreement
4. Consent to Assignment: Formal statement of the franchisor's consent to the assignment and any conditions precedent
5. Assignment: Core provisions detailing the transfer of rights and obligations from assignor to assignee
6. Purchase Price and Payment: Details of the consideration for the assignment and payment terms
7. Effective Date: Specifies when the assignment takes effect and any conditions that must be met
8. Assignor's Obligations: Ongoing obligations and warranties of the existing franchisee
9. Assignee's Covenants: New franchisee's commitments to comply with the franchise agreement and related obligations
10. Franchisor's Rights: Preservation of franchisor's rights and any additional requirements
11. Release: Terms of release for the assignor from future obligations
12. Costs: Allocation of legal and other costs related to the assignment
13. General Provisions: Standard clauses including governing law, notices, and execution requirements
1. Training and Transition: Used when specific training or handover requirements are needed for the new franchisee
2. Existing Staff: Include when the assignment involves transfer of employees
3. Lease Assignment: Required when premises are leased and need to be transferred
4. Non-Compete Obligations: Include when additional restrictions are placed on the departing franchisee
5. Outstanding Liabilities: Used when there are specific provisions for handling existing debts or obligations
6. Intellectual Property: Include when special IP arrangements or transfers need to be addressed
7. Third Party Consents: Required when other parties' approvals are needed for the assignment
8. Guarantees: Include when personal or corporate guarantees are required from the new franchisee
1. Original Franchise Agreement: Copy or details of the franchise agreement being assigned
2. Assets Schedule: List of physical assets, equipment, and inventory being transferred
3. Financial Statements: Current financial position of the franchise business
4. Transfer Price Calculation: Detailed breakdown of the assignment consideration
5. Due Diligence Checklist: List of completed due diligence items and outstanding matters
6. Handover Checklist: Detailed list of operational items to be transferred
7. Required Consents: List of third-party consents and their status
8. New Franchisee Credentials: Documentation of new franchisee's qualifications and capability
Authors
Retail
Food and Beverage
Hospitality
Professional Services
Automotive
Health and Fitness
Education and Training
Real Estate
Personal Services
Home Services
Legal
Finance
Operations
Compliance
Business Development
Risk Management
Commercial
Senior Management
Franchise Administration
Franchise Development Manager
Legal Counsel
Business Development Manager
Franchise Operations Manager
Chief Executive Officer
Chief Financial Officer
Compliance Officer
Business Transfer Specialist
Commercial Director
Franchise Consultant
Risk Manager
Operations Director
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