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Table of contents. ESIO franchising, LLC

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Exhibit 10.2

 

ESIO Franchising, LLC

 

FRANCHISE AGREEMENT

 

     
ESIO – Franchise Agreement 04/2012 B-1  

 

FRANCHISE AGREEMENT

 

TABLE OF CONTENTS

 

       
ARTICLE PAGE
     
1. INTRODUCTION  
     
2. GRANT OF FRANCHISE  
     
  2.1 Grant of Franchise  
       
  2.2 Term  
       
  2.3 Full Term Performance; Minimum Requirements  
       
  2.4 Grant of Franchise  
       
  2.5 Term  
       
  2.6 Full Term Performance; Minimum Requirements  
       
  2.7 Protected Territory.  
       
  2.8 Franchisor’s Reservation of Rights.  
       
  2.9 Renewal of Franchise.  
     
3. DEVELOPMENT AND OPERATION OF THE FRANCHISE  
     
  3.1 Site Selection..  
       
  3.2 Development Obligations and Deadlines.  
       
  3.3 Training.  
       
  3.4 Required Hardware and Software..  
       
  3.5 Equipment, Furniture, Fixtures, Furnishings and Signs.  
       
  3.6 Franchise Opening.  
       
  3.7 Grand Opening Program..  
       
  3.8 Standards of Operation and Marketing.  
       
  3.9 No Disparagement. .6
       
  3.10 Approved Suppliers and Vendors.  

 

     
ESIO – Franchise Agreement 04/2012 i  

 

       
  3.11 Process for Approval of New Suppliers and Vendors..  
       
  3.12 Consistency of Franchise Assets..  
       
  3.13 Consent to Sharing of Information; Appointment as Attorney in Fact..  
       
  3.14 Pricing..  
       
  3.15 Specifications, Standards and Procedures.  
       
  3.16 Compliance with Laws and Good Business Practices.  
       
  3.17 Management and Personnel of the Franchise.  
       
  3.18 Insurance.  
       
  3.19 Credit Cards and Other Methods of Payment.  
     
4. FRANCHISE; OPERATING PRINCIPAL; GUARANTY  
     
  4.1 Operating Principal..  
       
  4.2 Supervision of Franchise Business..  
       
  4.3 Interests in Franchisee.  
       
  4.4 Guaranty of Franchisee’s Obligations..  
     
5. GUIDANCE; OPERATIONS MANUAL  
     
  5.1 Guidance and Assistance.  
       
  5.2 Operations Manual.  
       
  5.3 Modifications to System.  
       
  5.4 Advisory Councils.  
     
6. FEES  
     
  6.1 Initial Franchise Fee.  
       
  6.2 Royalty Fee.  
       
  6.3 Advertising Fee.  
       
  6.4 Interest on Late Payments.  
       
  6.5 Late Fees.  

 

     
ESIO – Franchise Agreement 04/2012 ii  

 

       
  6.6 Electronic Funds Transfer.  
       
  6.7 Application of Payments.  
     
7. MARKS  
     
  7.1 Ownership and Goodwill of Marks.  
       
  7.2 Limitations on Franchisee’s Use of Marks.  
       
  7.3 Notification of Infringements and Claims.  
       
  7.4 Discontinuance of Use of Marks.  
       
  7.5 Indemnification of Franchisee.  
     
8. RELATIONSHIP OF THE PARTIES; INDEMNIFICATION  
     
  8.1 Independent Contractor; No Fiduciary Relationship.  
       
  8.2 No Liability, No Warranties.  
       
  8.3 Indemnification by You.  
     
9. CONFIDENTIAL INFORMATION  
     
  9.1. Types of Confidential Information  
       
  9.2. Non-Disclosure Agreement.  
       
  9.3. Agreement to Not Compete.  
     
10. ADVERTISING  
     
  10.1 By Company  
       
  10.2 By Franchisee.  
       
  10.3. Local and Regional Advertising Cooperatives.  
       
  10.4. Websites.  
     
11. ACCOUNTING, REPORTS AND FINANCIAL STATEMENTS  
     
12. INSPECTIONS AND AUDITS  
     
  12.1 Company’s Right to Inspect the Franchise.  
       
  12.2 Company’s Right to Audit.  

 

     
ESIO – Franchise Agreement 04/2012 iii  

 

       
13. TRANSFERS  
     
  13.1 Transfer by Us.  
       
  13.2 Transfer by You.  
     
14. TERMINATION OF THE FRANCHISE  
     
  14.1 Termination Without Cure Period.  
       
  14.2 Termination Following Expiration of Cure Period.  
       
  14.3 Illegality.  
     
15. RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISE OWNER UPON TERMINATION OR EXPIRATION OF THE FRANCHISE  
     
  15.1 Payment of Amounts Owed to Company.  
       
  15.2 Marks.  
       
  15.3 De-Identification.  
       
  15.4 Confidential Information.  
       
  15.5 Covenant Not to Compete.  
       
  15.6 Return of Financed Equipment..  
       
  15.7 Company’s Option to Acquire the Business Assets.  
       
  15.8 Continuing Obligations.  
     
16. ENFORCEMENT  
     
  16.1 Invalid Provisions; Substitution of Valid Provisions.  
       
  16.2 Unilateral Waiver of Obligations.  
       
  16.3 Written Consents from Franchisor.  
       
  16.4 Lien and Security Interest.  
       
  16.5 No Guarantees.  
       
  16.6 No Waiver.  
       
  16.7 Cumulative Remedies.  
       
  16.8 Specific Performance; Injunctive Relief.  

 

     
ESIO – Franchise Agreement 04/2012 iv  

 

       
  16.9 Mediation and Arbitration.  
       
  16.10 Waiver of Punitive Damages and Jury Trial; Limitations of Actions.  
       
  16.11 Governing Law/Consent To Jurisdiction.  
       
  16.12 Binding Effect.  
       
  16.13 No Liability to Others; No Other Beneficiaries.  
       
  16.14 Construction.  
       
  16.15 Joint and Several Liability.  
       
  16.16 Multiple Originals.  
       
  16.17 Timing Is Important.  
       
  16.18 Independent Provisions.  
     
17. NOTICES AND PAYMENTS  
     
18. INDEPENDENT PROFESSIONAL JUDGMENT OF YOU AND YOUR GENERAL MANAGER  
     
19. ENTIRE AGREEMENT  
     
20. AMENDMENTS OR MODIFICATIONS  
     
21. FRANCHISEE’S ACKNOWLEDGEMENT OF BUSINESS RISK AND ABSENCE OF GUARANTEE  

 

     
EXHIBITS    
EXHIBIT 1 EXPIRATION DATE, PROTECTED TERRITORY, GRAND OPENING ADVERTISING, AND FRANCHISING OPENING SCHEDULE  
EXHIBIT 2 OWNERSHIP STRUCTURE  
EXHIBIT 3 [INTENTIONALLY DELETED]  

 


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