Article 4: Scope of the Contract - main obligations of the parties

4.1 For the sole purpose of the operation of the Business from the Premises, the Franchisor grants the Franchisee for the Initial Term of the Contract, the following rights:

  1. the right and licence to use the IP Rights and the System;
  2. the right to receive the Franchisor’s Know-how, training and assistance as indicated in this Contract;
  3. the right to be supplied by the Franchisor, or by third parties indicated by the Franchisor, at the conditions set out in this Contract, with the Products for resale in the Premises.

4.2 The Franchisee shall use the rights granted under Article 4.1 in accordance with the terms and within the limits stated herein. Franchisee shall not use such rights for any purpose other than the operation of the Business from the Premises, nor use them after the termination of this Contract, whatever the reason for termination is. All rights not expressly granted to the Franchisee in this Contract are reserved to the Franchisor.

4.3 The grant of such rights to the Franchisee shall be conditional (and continue to be conditional during the Initial Term of the Contract) upon the Franchisee complying with Article 4.2 above.

In this Article, the franchisor is awarding the franchisee the right to use its proprietary business for mat, systems and trademarks in order to offer to distribute and sell the contractual products in the designated territory, provided that the franchise complies with the terms of the contract and follows the rules and quality control guidelines set forth in the franchisor’s operations manual (as it has been adapted for the local market) an d as it has been communicated to the franchisee in the training program. It is interesting to note that there are a wide variety of franchise offerings, and each type may have different empowering clauses in the grant of a franchise.

4.4 The Franchisee shall use its best efforts to promote and expand its Business and collaborate with the Franchisor and protect its interests with the diligence of a responsible businessperson.

4.5 The Franchisee shall promptly comply with any reasonable request of the Franchisor (or any other authorized person) for information. The Franchisee undertakes to disclose to the Franchisor any information which is relevant to the Business or which may otherwise affect the franchise network.

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