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INSTITUTE OF HIGHER STUDIES

FINAL EXAMINATION IN FRANCHISING

“FRANCHISE AGREEMENT FOR PIZZAWRAP”

Name: Khyele J. Talplacido Date:

Year/Section: BSBA FM- 4

Submitted to:

Mrs. Ma. Lourdes D. Jacinto, MBA

Professor
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The Franchisor is “PizzaWrap”. Citizens nowadays prefer something new,

something extraordinary. Products that are incorporated with innovation has a
great appeal on customers, that is how the product pizzawrap became popular
easily in the market. A traditional flavored pizza wrapped in a tortilla really hit the
market.
Many customers thought that the product is a bit expensive but it is the
other way around. Even though they upgraded a traditional pizza they see to it
that the product is affordable yet delicious and full of flavorings.
With the aim of consistently serving its customers with well-proven quality
pizza; and by providing its franchisees with high quality service, careful store
potential assessment, and a direct, friendly and expert approach to the business.
The total investment necessary to begin the operation of PizzaWrap
franchise ranges from PHP 200,000 and has a royalty fee of 3% and Investment
Capital of PHP 900,000. The Franchisor will grant exclusive location / area to the
Franchisee.

Franchise Fee Inclusions or Package:

 Franchise Fee for a period of 5 years
 Cart or Kiosk with mobilization within Nueva Ecija and nearby provinces
 2 Door Built in Pizza Oven
 Small wares as specified in start-up materials
 3 sets of Uniform
 Opening stocks
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FRANCHISE AGREEMENT

This Agreement, executed and entered into this ___th day of ____, 2023 at
Zaragoza, Nueva Ecija, Philippines, by and between:

" PizzaWrap." a sole proprietorship duly registered and existing under Philippine
laws, with its principal office at #124 Brgy. Sto. Rosario Young Zaragoza, Nueva
Ecija Owned and managed by Khyele J. Talplacido and herein after referred to as
the "FRANCHISOR".
-AND-
Rayaleen Lanzer S. Yap of legal age, Filipino and a resident of #101 Brgy. San
Joseph Sta. Rosa, Nueva Ecija and herein after referred to as the "FRANCHISEE".

WITNESSETH:
WHEREAS, the FRANCHISOR, as a result of the expenditure of time, effort and
money, has acquired unique experience, as well as special skills, technique and
knowledge with reference to the development, opening and operation of
PizzaWrap outlet facilities;
WHEREAS, the FRANCHISOR has devised a standard, unique and uniform system
for the establishment, operation and development of the same in especially
designed food service outlet structures with distinctive fixtures, equipment,
interior and exterior accessories and color schemes, food formula, inventory and
accounting systems and comprehensive management assistance, (all of which
may be changed, improved and further developed from time to time) which
system is identified by the name "PizzaWrap".
WHEREAS, the FRANCHISOR is the sole and exclusive owner of the entire right,
title and interest, together with all the goodwill connected within and to the
name " PizzaWrap "
WHEREAS, the FRANCHISOR, has by maintenance of uniformity and high
standard of quality and service, established a reputation, demand and goodwill
for said food service outlets and facilities operated under such a system and its
name; and WHEREAS, all the foregoing having a distinctive and valuable
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significance to the public, and FRANCHISEE, being cognizant thereof, desires to

make use of the name "PizzaWrap" and to enjoy the commercial benefits of that
name and the benefits of the operating services and merchandising system
related there to;
NOW, THEREFORE, the parties here to intending to be legally bound in
consideration of the mutual agreements and premises contained herein do
hereby agree as follows:

1. APPOINTMENT AND FRANCHISE FEE

A. FRANCHISOR, hereby appoints the FRANCHISEE as franchisee, and grants unto
FRANCHISEE the right and privilege to use the name " PizzaWrap" and the
franchise, the right and privilege to use FRANCHISOR'S techniques in the
operation of the foodservice outlet, under the specific conditions hereinafter set
forth, at one location only, the location to be at 1st Floor Hallway Area with an
area of 4.0 sqm at Puregold Zaragoza, Nueva Ecija.

1. A franchise fee of Five Hundred Fifty Thousand pesos (Php 550,000.00) must
be paid to the franchisor upon the execution of this agreement or any renewal
thereof by the franchisee. The franchisor retains the right to modify the
franchise fee that is due under this agreement, as long as it is applied
prospectively.

B. Apart from the privileges granted to the FRANCHISEE, the FRANCHISOR is

responsible for organizing and executing a unique training program for the first
management team and service staff, as well as for promotional and other pre-
opening services and ongoing organizational support. This does not include daily
training meals and transportation allowance. During the training term, the
Franchisee will be responsible for paying the training salary.

II. EXCLUSIVITY
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A. FRANCHISOR will not, so long as this Agreement is in force and in effect, and
FRANCHISEE is not in default under any of the terms hereof, operating or
enfranchise any other outlet within FRANCHISEE's location. This shall not apply to
the following:
1. Any and all locations franchised or in operation prior to the date of this
Franchise Agreement.
2. Subsequent outlet locations with the same territory which, after having first
been offered in writing to FRANCHISEE, and FRANCHISEE opts not to accept the
offer or fails to act on the offer within thirty days (30) days, maybe acquired and
operated by FRANCHISOR or franchised out by the latter for the parties' mutual
protection against actual and potential competition.
3. When FRANCHISOR exercises its right, notwithstanding any rights granted
elsewhere herein, to promote and conduct special sales through mobile units or
temporary locations at special events such as fairs, conventions, athletic contests,
etc., in the location granted to FRANCHISEE hereunder, provided, however that
FRANCHISOR shall offer the opportunity to conduct such promotions and special
sales to FRANCHISEE in writing at least seven (7) days prior to such acceptance to
the offer within seven (7) days after such offer.
4. When FRANCHISOR exercises its right to conduct product marketing tests in
which FRANCHISEE may, but will not be required to participate.

B. The term "franchise location" shall be taken to mean only that zone within a 2-
kilometer road distance from the franchisee's outlet. Consequently, outside of the
said zone, the FRANCHISOR is free to operate or enfranchise any other outlet at
its own discretion.
III. ROYALTY FEE
A. FRANCHISEE shall pay the FRANCHISOR a Royalty fee of 3 percent of gross
sales per year.
B. During the term of this Agreement, FRANCHISEE must submit to FRANCHISOR
a copy of BIR payment as proof that the tax was remitted to the Bureau of
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Internal Revenue (BIR). Said fee shall be paid monthly and in full manner specified
below.
1. A accurate Statement of Gross Monthly Sales for the period must be
submitted by the Franchisee. No later than five (5) days following the end of each
month, FRANCHISEE is required to turn in a copy of each monthly statement to
FRANCHISOR at its office or via email.
2. The term "gross sales" as used here refers to the total of all product
sales as well as all business conducted in, on, upon, and from the outlet
franchised under this agreement; credits and refunds are not included in this
statement.
3. Following that, the FRANCHISEE will be required to pay immediately for
any and all tax obligations resulting from the franchised unit's gross sales.
FRANCHISOR shall not be liable for any such consequences under any
circumstances.

IV. FRANCHISEE AS INDEPENDENT CONTRACTOR

A. For any reason, this agreement does not designate FRANCHISEE as
FRANCHISOR's agent, representation in law, partner in a joint venture,
employee, or servant. The parties hereto agree that, subject to the terms and
obligations set forth in this Agreement, FRANCHISEE is an independent
contractor with complete authority over the direction of his business and
activities. FRANCHISEE is not permitted to make any statements that would
seem to establish a partnership or agency employment. In order to impose
responsibilities or debts on the other party, neither party shall have the power
to act on behalf of the other. It shall not be deemed that FRANCHISEE
or anyone carrying out any tasks or working on the property at FRANCHISEE's
request is an employee or agent of FRANCHISOR.

B. FRANCHISOR shall not be responsible for any conduct, default, or other duty
of FRANCHISEE under any circumstances. When a franchisee operates a
franchised business, the FRANCHISEE is obligated to hold the FRANCHISOR
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free from all possible liabilities or damages resulting from such claims,
including the cost of defending against such claims.

V. TERM OF THE FRANCHISE AGREEMENT

This agreement will be in effect and enforceable for five (5) years from the date of
execution or, if the parties choose to terminate it earlier, from the first day the
outlet opens for business. The franchisee may extend its franchise for an
additional five (5) years on the same terms and conditions as those on which new
franchises are awarded, provided the franchisee has dutifully observed and
fulfilled all of its obligations under this agreement. As a result, at the time of
renewal, the renewal fee will be fiftyfive percent (55%) of the current franchise
fee. The franchisee will also be subject to his ability and right to occupy the
location where the franchise was operated if he chooses to renew at least one
hundred (100) days prior to the expiration. The term of renewal will automatically
expire if the franchisee's possession of the premises terminates for any reason
before the term extension or renewal permitted hereunder.
VI. START OF BUSINESS AND HOURS OF OPERATION
A. After receiving word from the franchisor that the outlet is prepared for
operation, the franchisee must begin running the business within seven (7) days
of the week (Monday through Sunday, for example).
B. In order to properly promote " PizzaWrap," FRANCHISEE acknowledges that
continuous and daily availability of products and services to the public is
necessary. Any inability to provide such availability will negatively impact
FRANCHISOR'S reputation and goodwill. FRANCHISEE will maintain its business
operations in accordance with generally accepted business standards and keep
its outlet open for business every day, or during those hours permitted by the
local government, unless otherwise prohibited.

VII. STANDARDS OF SERVICE AND OPERATION

A. The franchisor's proper marketing of " PizzaWrap" as well as the maintenance
and promotion of its reputation and public acceptance depend on the franchisor
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maintaining uniform and authorized prices in addition to maintaining uniform

standards of food appearance, quality, quantities, and types. FRANCHISEE shall
only ever dispense, sell, or offer for sale to the general public those foods or
products that FRANCHISOR has permitted, at costs that FRANCHISOR has
approved and agreed upon.
B. FRANCHISEE shall purchase ONLY from FRANCHISOR the Pizza Variants and
Flavors, as well as all the materials and supplies required by the FRANCHISOR to
be purchased from the FRANCHISOR'S commissary and other food items to be
offered for sale. All purchases made by FRANCHISEE shall be at prices established
by FRANCHISOR and in effect at the time of order. Prices are subject to change
by FRANCHISOR at any time upon notice without creating any liability on the part
of FRANCHISOR TO FRANCHISEE.
C. Because the FRANCHISOR'S name depends on the consumer's identification of
the product, and because all products sold in the outlet tend to be identified by
the consumer as the FRANCHISOR'S product. FRANCHISEE shall not prepare or
sell any food items other that FRANCHISOR'S written permission.
D. The actual design, color and style of the accessories to be used by the
FRANCHISEE in its outlet shall not be changed, altered or modified unless with
the prior written approval of FRANCHISOR
E. It is hereby also agreed and understood that the basic design, layout and
appearance of FRANCHISEE's outlet shall not be changed, altered or modified
unless with prior written approval of the FRANCHISOR.
INSTITUTE OF HIGHER STUDIES