Assignment #1: Franchise Agreement Analysis PaperPurpose of AssignmentIn this project, you will develop a Franchise Agreement Analysis, based on the Haagen-Dazs franchisee agreement (uploaded). The analysis will seek demonstrate your understanding of the importance of the Franchise Agreement to the success of the business for both parties. The analysis will have you identify the major components of a successful agreement through the evaluation of an existing agreement and why each component is necessary to the success of a franchise contract. Assignment OutcomesThe student will be able to address the following outcomes upon completion of the assignment:Identify the major components necessary for a successful franchise agreement.The ability to analysis, evaluate, and summarize a business contract for fairness and potential success.Develop Critical thinking skillsDevelop Communication skillsAssignment OutcomesThe student will be able to address the following outcomes upon completion of the assignment:Identify the major components necessary for a successful franchise agreement.The ability to analysis, evaluate, and summarize a business contract for fairness and potential success.Develop Critical thinking skillsDevelop Communication skillsThe final paper will be double-spaced, using 12-point Times New Roman font, APA style formatting, and 4-to 6 pages in length, not including the title page, resources, or the link to the franchise agreement. The paper must contain the following element, in the order presented:Summary:Provide a short two-to-three-paragraph overview of the paper which summarizes the conclusions drawn with respect to the potential success of the contract for the parties.Critical Assessment:Identify the fundamental components of the agreement and why each component is necessary to the success of a franchise contract.Identify suggested corrections to the agreement and why they would be necessary to the success of the contract.Identify suggested improvements to the agreement and why they would be necessary to the success of the contract.Compare the fairness of the agreement by identifying if the agreement favors the Franchisee or Franchisor and why.Assessment of your chosen franchise agreement should include the following:Quotes from franchise agreement (remember to format quotes according to APA guidelines)Citations from articles from assigned readings and other external readingConclusion: Conclude your assessment by explaining how willing you are to sign the contract and why, reflecting upon the evaluation of the potential success for both parties under the terms of the contract.Reference listCopy of franchise agreement used to conduct the assessmentTips for SuccessBefore writing the paper, review the grading rubric for the assignment so you understand how the assignment will be graded (https://learn.umuc.edu/d2l/lms/dropbox/user/folder…) (Login ID: eebai; Password: @Pass4sure)In writing this paper, third person writing is required.What this means is that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing).If uncertain how to write in the third person, view this link:http://www.quickanddirtytips.com/education/grammar/first-second-and-third-personIn writing this assignment, students are asked to support the reasoning using in-text citations and a reference list.A reference within a reference list cannot exist without an associated in-text citation and vice versa.View the sample APA paper in attached in this folder. You must cite at least three references using APA format like the example below.In writing this assignment, students are expected to paraphrase and not use direct quotes.Learn to paraphrase by reviewing this link:https://writing.wisc.edu/Handbook/QPA_paraphrase2.htmlUsing the grading rubric as a comparison, read through the paper to ensure all required elements are presented.Proof read the paper for spelling and grammatical issues, and third person writing.
haagendazs_2007_fa.pdf

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HAAGEN-DAZS SHOP FRANCHISE AGREEMENT
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PROJECT / SHOP #
This Haagen-Dazs Shop Franchise Agreement (this “AGREEMENT”) is entered into as of the [Q.fil1 day
of [Month]. ~ . by and between The Haagen-Dazs Shoppe Company, Inc., a New Jersey corporation,
with its principal place of business at 500 Washington Avenue South, Suite 2040, Minneapolis, MN 55415
(“SHOPPE COMPANY”), and:
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<""" ~ ~ ('1"' (IF" r""" rrn. .. (1nd1v1dually and collectively "FRANCHISEE") . ~ ~ Franchise Type: ~ 0 0 0 NEW HAAGEN-DAZS® SHOP; NEW FRANCHISEE NEW HAAGEN-DAZS® SHOP; EXISTING FRANCHISEE EXISTING HAAGEN-DAZS® SHOP, SUCCESSIVE TERM FRANCHISE ~ rm-, (1", ~ fi'1" FRANCHISEE acknowledges that the information on this page (the "COVER SHEET") is material, and accurately reflects FRANCHISEE's understanding. Whether a particular reference, in this AGREEMENT to "NEW HAAGEN-DAZS® SHOP" "NEW FRANCHISEE" "EXISTING FRANCHISEE" or "SUCCESSIVE TERM FRANCHISE" is applicable to FRANCHISEE, is determined by the single, specific, "Franchise Type" designation indicated above. (/'hi f1""' ~ f1' ~ f11"- e 1 April 2006 Article 1 1.1 1.2 1.3 1.4 Article 2 2.1 2.2 2.3 2.4 2.5 Article 3 3.1 3.2 3.3 Article 4 4.1 4.2 Article 5 5.1 5.2 5.3 5.4 Article 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 Article 7 7.1 7.2 7.3 7.4 Article 8 8.1 8.2 Article 9 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 Article 10 10.1 10.2 10.3 e Introduction ....................................................................................................................................... 1 The SYSTEM .................................................................................................................................... 1 FRANCHISEE's Desire to be Part of the SYSTEM ........................................................................... 1 SHOPPE COMPANY's Desire to Grant FRANCHISE ...................................................................... 1 Agreement of the Parties .................................................................................................................. 1 Certain Definitions ............................................................................................................................. 1 HAAGEN-DAZS® PRODUCTS ........................................................................................................ 1 HAAGEN-DAZS® SHOP .................................................................................................................. 1 MARKS ............................................................................................................................................. 1 NOTICE ............................................................................................................................................ 1 SHOP ................................................................................................................................................ 2 Site Selection, SHOP construction, and EXCLUSIVE TERRITORY ................................................. 2 Site Selection Process; Designation of SHOP PREMISES ............................................................... 2 Shop Design and Construction ......................................................................................................... 2 EXCLUSIVE TERRITORY ................................................................................................................ 2 Grant ................................................................................................................................................. 2 The "FRANCHISE." ........................................................................................................................... 2 No Right to Relocate, or Conduct Sales Away from the SHOP ........................................................ 3 Commencement, TERM and Renewal .............................................................................................. 3 The "TERM." ..................................................................................................................................... 3 NEW HAAGEN-DAZS® SHOP ......................................................................................................... 3 SUCCESSIVE TERM FRANCHISE .................................................................................................. 5 Limitation on Conditional Renewal Opportunity ................................................................................ 5 SHOPPE COMPANY's Obligations ..............................................................................•....•.••........... 5 Plans and Specifications ................................................................................................................... 6 Training ............................................................................................................................................. 6 SHOP OPERATIONS MANUAL. ...................................................................................................... 6 Final Inspection .................................................. :.............................................................................. 6 Opening Assistance ............................................................................................................•............. 6 Ongoing Source of HAAGEN-DAZS® PRODUCTS and Other Products .......................................... 6 Ongoing Advice and Assistance ....................................................................................................... 6 Initial Fees ....................................................................................................................•................... 6 The "FRANCHISE FEE." ................................................................................................................... 6 Failure to Timely Pay Second Installment of FRANCHISE FEE. ...................................................... 7 FRANCHISE FEE is Nonrefundable................................................................................................. 7 Partial Refund Upon Failure To Satisfy Initial Training Requirement. ............................................... 7 GRAND OPENING Program ••...•..••...............................................................•....•........•...•................. 7 Optional GRAND OPENING ............................................................................................................. 7 Participation by SHOPPE COMPANY .............................................................................................. 7 Continuing Fees ................................................................................................................................ 8 "GROSS SALES" Defined ................................................................................................................. 8 Charge Sales .................................................................................................................................... 9 Sales Away from the SHOP .............................................................................................................. 9 Reporting GROSS SALES .......................................................................................•...•.................... 9 Estimating GROSS SALES ............................................................................................................... 9 "ROYALTY." ...................................................................................................................................... 9 "GENERAL MARKETING CONTRIBUTION." ................................................................................. 10 "LOCAL MARKETING CONTRIBUTION." ...................................................................................... 11 Electronic Funds Transfer (EFT) ..................................................................................................... 12 No Rights of Set-Off........................................................................................................................ 12 Late Payment. ................................................................................................................................. 12 Confidential Manual and Information .............................................................................................. 12 "SHOP OPERATIONS MANUAL" Defined ...................................................................................... 12 Ownership, Possession and Control of SHOP OPERATIONS MANUAL. ....................................... 12 Revisions to SHOP OPERATIONS MANUAL. ................................................................................ 13 April2006 ~ ~ ~ ~ ~ [#', ~ f?"' ,... ($"'- ~ ~ ($"'- ~ ~ ~ ~ {°' ~ (11"" (f8"'t ,... ,,,., fo/" ~ r"' ($"~ {°' ~ ~ r1' t11"f!'1"' ~ ~ ('!i'JI ~ ~ ~ ~ ,.. f!111"' 10.4 Article 11 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 Article 12 12.1 12.2 12.3 12.4 12.5 12.6 12.7 Article 13 13.1 13.2 13.3 13.4 13.5 13.6 13.7 Article 14 14.1 14.2 14.3 14.4 14.5 14.6 14.7 Article 15 15.1 15.2 e Confidential Information .................................................................................................................. 13 System standards ........................................................................................................................... 13 SHOP OPERATIONS MANUAL ..................................................................................................... 13 DESIGNATED SHOP MANAGER .................................................................................................. 13 Training ........................................................................................................................................... 14 Best Efforts ..................................................................................................................................... 14 SHOP Employees .....•.•.•..•..............................................................•..•............................................ 15 Operations and Product Standards ................................................................................................. 15 Sources ofSupply ........................................................................................................................... 15 Mandatory Participation in Marketing Programs ............................................................................. 16 Compliance with Laws, Health & Safety Requirements .................................................................. 17 Remedying Food Safety Concerns ................................................................................................. 17 SHOP Inspections ........................................................................................................................... 17 Correcting Deficiencies ................................................................................................................... 17 Immediate Removal of Non-Conforming Items............................................................................... 18 Repair and Renovation ................................................................................................................... 18 Remodeling ..................................................................................................................................... 18 Equipment and Technology Upgrades .......................................•.•.•....................................•........... 18 Sales and Product Mix Reporting Requirements ............................................................................ 18 Projecting Requirements of HAAGEN-DAZS® PRODUCTS & Other Products .............................. 18 Hours of Operation .......................................................................................................................... 19 POS SYSTEM ....••...•..........•...............................................................•.•...............................•...•...... 19 Acceptance of Credit and Debit Cards ............................................................................................ 20 Gift Card Program ........................................................................................................................... 20 Coupons and Discount Offers ......................................................................................................... 20 Promotional Materials ............•.....•.................................................................................................. 20 Access to Email & Internet; Consent lo Communication Medium ................................................... 20 Prompt Payment of Obligations ...................................................................................................... 21 Significant Event Notifications......................................................................................................... 21 Books and Records; Accounting and Audits ................................................................................... 22 Accounting Procedures ................................................................................................................... 22 Record Retention ............................................................................................................................ 22 Chart of Accounts ........................................................................................................................... 22 Annual Reporting; Reporting Upon Termination ............................................................................. 22 Inspections and Audits by SHOPPE COMPANY ............................................................................ 22 Failure lo Permit Inspection or Audits ............................................................................................. 22 Audit Determination of Understated GROSS SALES ...................................................................... 23 Proprietary SYSTEM and MARKS .......................•..•..•.....................................................•.............. 23 Right to License MARKS .......•..........................•.•.....................................•..•.................................. 23 Non-Exclusive License .................................................................................................................... 23 Good Will Associated with the SYSTEM and MARKS .................................................................... 23 Use of SYSTEM and MARKS ......................................................................................................... 23 SHOPPE COMPANY Approval of Marketing Materials and Offers ................................................. 23 FRANCHISEE Website ......................•..................................•......•.•..•............................................. 24 Use of MARKS as Part of Trade Name ........................................................................................... 24 Transfer of Interest. .............................................................................•.•......................................... 24 "TRANSFER" by FRANCHISEE defined ......................................................................................... 24 SHOPPE COMPANY's Right of First Refusal ................................................................................. 24 Voluntary TRANSFER by FRANCHISEE ........................................................................................ 25 TRANSFER Upon Death or Mental Incompetence of FRANCHISEE ............................................. 26 Pledge of AGREEMENT or FRANCHISE Prohibited ...................................................................... 27 Assignment by SHOPPE COMPANY ............................................................................................. 27 Parties Affected ......................................•...•.•...•.•.....•..•..........•.•.....................•..........•..................... 27 Default and Termination .................................................................................................................. 27 Termination by SHOPPE COMPANY............................................................................................. 27 Termination by FRANCHISEE ........................................................................................................ 33 ii April 2006 Article 16 16.1 16.2 Article 17 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 Article 18 18.1 18.2 18.3 18.4 18.5 18.6 Article 19 19.1 19.2 19.3 19.4 19.5 19.6 Article 20 20.1 20.2 20.3 Article 21 21.1 21.2 21.3 21.4 Article 22 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 Article 23 23.1 23.2 23.3 23.4 23.5 23.6 Article 24 24.1 24.2 24.3 e Obligations upon Expiration or earlier Termination ......................................................................... 34 Termination Consequences and Obligations on Expiration ............................................................ 34 Other HAAGEN-DAZS® SHOP Franchises Held by FRANCHISEE ............................................... 35 LEASE .........••...••..•...••...•...••...•...•............................•..•..•.....•.............•...•..•...•..•..•..•..•.....•............... 35 Interest of SHOPPE COMPANY in Continued Presence at the SHOP PREMISES ...•..•..••............ 35 LEASE Expiration Different Than FRANCHISE EXPIRATION DATE ............................................. 35 Conditional Assignment. ......................................................................................................••...•..... 35 Right of Entry ...................•.............................................................................................•..••.••..•...... 36 Curing Defaults Under LEASE ........................................................................................................ 36 Eviction Constitutes Abandonment of FRANCHISE ........................................................................ 36 Effect of Failure to Exercise Option .................•••.•.•..••.•..••..•..••......................•..•..••....••..•..•.............. 36 LEASE Shall Be Acceptable To SHOPPE COMPANY...............•.•.....•..•........................................ 36 Covenants Against Competition .............•......................................•.....•..•.....................................••. 38 During TERM ....•...•....•....•...•....•..•.......................•.•..•..•..•...•.....•.........................•.........•......•........... 38 Following Termination, Expiration, or TRANSFER. ......................................................................... 38 Exception for Other HAAGEN-DAZS® SHOPs ............................................................................... 38 Survival of Covenant; Materiality ...•.•..•..........................................................................•......••......... 38 Interpretation ...•..........................................•.••.•..•.•..•..•...............••..••.•..••.•� ... 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