FRANCHISE AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This FRANCHISE AGREEMENT is executed and entered this 30th day of January, 2023.
By and between:
KYLE ASHLEY O. COSTO of legal age, Filipino, married and with residence and address at
6th Street Patag District Brgy. 11 Catbalogan City, Samar 6700, and doing business under
the name CRISPYBUCKS FAST-FOOD CHAIN at the same postal address hereinafter referred
to as FRANCHISOR.
-AND-
BENJAMIN B. BALENTOG of legal age, Filipino, married and with residence and postal
address at BRGY. 74 LOWER NULA-TULA, TACLOBAN CITY, LEYTE 6500, hereinafter
referred to as the FRANCHISEE.
WITNESSETH:
WHEREAS the FRANCHISOR is in the food retail business under the duly registered name
of CRISPY BUCKS FAST-FOOD CHAIN, hereinafter referred to as the TRADE NAME.
WHEREAS the FRANCHISOR is offering to qualified individuals or entities franchises to
allow the use of the TRADE NAME.
WHEREAS, the FRANCHISEE has indicated the desire to operate a food retail business
using the TRADE NAME at BRGY. 74 LOWER NULA-TULA, TACLOBAN CITY, LEYTE 6500.
WHEREAS the FRANCHISEE represents that it has the necessary licenses and relevant
government permits to operate a food retail business.
NOW, THEREFORE, for and in consideration of the foregoing premises a mutual covenant
hereinafter specified, the parties hereto agree as follows:
1. GRANT OF FRANCHISE AND FRANCHISE FEE: The FRANCHISOR hereby grants to the
FRANCHISEE the franchise, authority, and privilege to operate a retail food business using
the TRADE NAME for a franchise fee of Six Hundred Fifty Thousand pesos only (₱
650,000.00), Philippine Currency, payable upon signing of this Franchise Agreement.
The franchise granted under this is non-transferable, not refundable, in whole or in part for
any reason whatsoever.
2. FRANCHISE PACKAGE: In consideration for the right to develop and operate one CRISPY
BUCKS FAST-FOOD CHAIN, the Franchisee agrees to pay to the Franchisor an initial
franchise cost in the amount set forth in Exhibit I attached hereto, all of which is due and
payable on the date the Franchisee signs this Agreement. The Franchisee acknowledges
and agrees that the initial franchise fee represents payment for the initial grant of the rights
to use the Marks and Methods, that the Franchisor has earned the initial franchise fee upon
receipt thereof and that the fee is under no circumstances refundable to the Franchisee after
it is paid.
3. FRANCHISEE’S OPERATIONAL COVENANTS: The Franchisee acknowledges that it is
solely responsible for the successful operation of CRISPY BUCKS BRANCH and that the
continued successful operation thereof is, in part, dependent upon the Franchisee’s
compliance with this Agreement and the Operations Manual. In addition to all other
obligations contained in this Agreement and in the Operations Manual, the Franchisee
covenants that:
a. The Franchisee shall maintain clean, efficient and high-quality CRISPY BUCKS
BRANCH operations and shall operate the business in accordance with the Operations
Manual and in such a manner as not to detract from or adversely reflect upon the name
and reputation of the Franchisor and the goodwill associated with the company name and
Marks.
b. The Franchisee agrees to obtain all such permits and licenses as may be required for
the lawful operation of the CRISPYBUCKS BRANCH together with all certifications from
the government authorities having jurisdiction over the scope and area where the branch is
located. The Franchisee will operate its CRISPYBUCKS BRANCH in compliance with all
applicable laws, health department regulations and other ordinances. In connection
therewith, the Franchisee will be solely and fully responsible for obtaining any and all
licenses to operate the CRISPY BUCKS BRANCH. The FRANCHISOR does not have any
control on the day to day transactions of the branch, hence the FRANCHISOR will not be
held liable for any misconduct, complaint, liability and penalty incurred by the
FRANCHISEE and the employees of the branch the FRANCHISEE owns.
c. The Franchisee and all employees of the Franchisee shall adhere to strict grooming and
dress code guidelines, as described in the Code of Conduct set forth in the Operations
Manual, while on duty at the Franchised Location. The Franchisee is required, at the
Franchisee’s expense, to purchase specified apparel from suppliers approved by the
Franchisor. All General Managers, employees of the Franchisee, the Franchisee and its
owners shall wear the specified apparel at all times while working at the Franchised
Location. The Franchisor has the right, in its sole and absolute discretion, to change or
modify such grooming and dress code guidelines in the Operations Manual.
d. The Franchisor reserves the right to provide all advertising materials, communication and
other promotional processes which cost charge to the Franchisee. The Franchisee
acknowledges that advertising and promoting the CRISPYBUCKS BRANCH in accordance
with the Franchisor’s standards and specifications is an essential aspect of the Methods,
and the Franchisee agrees to comply with all advertising standards and specifications. The
Franchisee shall display all required promotional materials, signs, point of purchase
displays and other marketing materials in its CRISPYBUCKS BRANCH in the manner
prescribed by the Franchisor. The Franchisee shall not, under any circumstances, use
handwritten signs in the operation of its Branch. The FRANCHISOR is entitled collect a
MARKETING FEE for all marketing and promotional activities the total amount incurred will
be divided to all the FRANCHISEES of the TRADE NAME.
e. Unless notified in writing otherwise by the Franchisor, all Main products and related
products shall be sold and shipped to the Franchisee per delivery basis, advance payment
two (2) days before the delivery date. The Franchisor reserves the right to charge interest
at the rate of 1.5% per month if the Franchisee fails to pay for its orders on time and the
Franchisor reserves the right to discontinue shipment of Main products and related
products to the Franchisee if the Franchisee is repeatedly delinquent in paying for its
products, in the Franchisor’s sole discretion. The Franchisee may be required to “prepay”
orders, notwithstanding the payment policy set forth above, in the event of poor payment
performance. The Franchisor reserves the right to change payment terms and policies at
any time. The Franchisor also reserves the right to change the price for its products from
time to time as may be set forth in the most recent price bulletin sent to all franchisees or
the then current Operations Manual.
f. All products delivered are considered sold and are in good condition. Upon receipt of the
goods all the accountability is transferred to the FRANCHISEE. Any defects, flaws or faults
will be the accountability of the FRANCHISEE hence the FRANCHISOR will not be held
liable for any defect, flaws or faults of the products or goods delivered.
4. MONTHLY ROYALTY: The Franchisee agrees to pay to the Franchisor a monthly royalty
(“Royalty”) equivalent to 20% of its MARK UP generated from or through its
CRISPYBUCKS BRANCH.
5. EFFECTIVITY / RENEWAL: This Franchise Agreement shall be effective and in force for a
fixed period of FIVE YEARS (5) from JANUARY 30, 2023, and be renewed after the said
period, the renewal fee will be based on the performance of ROI as stipulated in the
Franchise Proposal, based on the prevailing cost of living index.
6. EXCLUSIVITY OF FRANCHISE AREA: The exclusive area under this franchise agreement
shall be a radius of one hundred (100) meters from the FRANCHISEE store location
meaning the FRANCHISOR cannot grant any other franchise except where there is a
shopping mall within the said area, in which case the FRANCHISOR could grant another
franchise.
7. STORE SPACE / RENOVATION: The FRANCHISEE will provide the Building, Area for the
Branch/Store, subject for the approval of the FRANCHISOR. The FRANCHISOR will make
the renovation for the total area not to exceed 30sqm. In excess of the total Area, the cost
of the renovation shall be for the account of the FRANCHISEE, which will be determined
upon inspection and computation of the company’s internal renovation team.
8. EXCLUSIVITY OF SUPPLY/SERVICES: The FRANCHISEE agrees and undertakes to
source the materials and ingredients exclusively from the FRANCHISOR or its accredited
suppliers to ensure consistency of the quality of the food served under the TRADE NAME.
9. MARKETING STRATEGY / TECHNOLOGY / CONSULTATION: The FRANCHISOR
guarantees and commits to provide and make available to the FRANCHISEE any new
technology relative to product development and the mode of service for customers.
The FRANCHISOR shall assist the FRANCHISEE in the formulation of a marketing strategy
that would enhance the latter’s business operations relative to the franchise.
The FRANCHISOR shall make available to the FRANCHISEE such services and business
advice geared toward the development of the latter’s operations.
The FRANCHISEE undertakes and commits to maintain its operations in accordance with
the standards set forth by the FRANCHISOR, including but not limited to store layout, food
service norms, and the like.
10. INSURANCE: The FRANCHISEE shall be responsible for obtaining insurance, at its own
and exclusive expense, against fire and other risks relative to the operations of the
franchise.
11. TERMINATION OF AGREEMENT / CONDITION: This franchise agreement can be
terminated prior to the expiration of the term provided under Clause II above by the
FRANCHISOR in the event of the violation by the FRANCHISEE of any provision herein.
Either party may terminate this franchise agreement by giving the other party written notice
thirty (30) days prior to the desired date of termination; provided that such termination is
without prejudice to any right either party may have against the other party;
Should termination be initiated by either party, the FRANCHISEE commits to refrain to
engage in any business, on its own or in partnership with any other party, that would be
considered as a competition of the business of the FRANCHISOR;
12. ARBITRATION: In case of conflict, the parties herein agree to submit to arbitration by an
Arbitration Committee shall be composed of three (3) members with each party nominating
a member and the appointed members nominating a third member who will be the
arbitration committee’s chair.
In case the Arbitration Committee fails to resolve any conflict brought before it, either party
can bring a court action against the other party in a court that would have the proper
jurisdiction on the case.
IN WITNESS WHEREOF, the parties hereto have signed this presents this __ DAY of
_________ year ________.
KYLE ASHLEY O. COSTO BENJAMIN B. BALENTOG
FRANCHISOR FRANCHISEE
Signed in the presence of:
_________________________ _________________________
Witness Witness
ACKNOWLEDGEMENT
Republic of the Philippines )
City of Catbalogan ) S.S
BEFORE ME, personally appeared:
Name ID NO. Date/Place Issued
KYLE ASHLEY O. COSTO ________________ ______________________
BENJAMIN B. BALENTOG ________________ ______________________
Who presented to me that they are the same persons who executed the forgoing Franchise
Agreement consisting of four (4) including this page and signed by them on each page hereof
and acknowledged to me that the same is their free and voluntary act and deed and the free
and voluntary act and deed of the corporation represented herein.
WITNESS MY HAND AND SEAL, this_________________________.
Doc. No.________;
Page No.________;
Book No.________;
Series of 2022
