Franchise Contract

This franchise contract is made and executed by and between:

GooGoo Sweet Cake Inc, a duly organized and existing company according to
Philippine Laws with principal office at 62 Cordillera, Dona Josefa, Quezon city,
Philippines represented in this act by Choi Byoung Yi, of legal age, Korean, a
resident of 62 Cordillera, Dona Josefa, Quezon city, Philippines, hereinafter referred
to as the “Company ”;
and
__________________ of legal age, Filipino, a residents of
________________________________________________Philippines, hereinafter
referred to as the “Franchisee”.

WITNESSETH; That

WHERE AS the Company is the owner and operator of Gu-Gu Manju and Gu-
Gu Mega tea.

WHERE AS the Company is willing to FRANCHISE the Gu-Gu Manju and the
Gu-Gu Megatea to the Franchisee.

* Franchisor is referred to as "A" in this document.

1. The Franchisee is willing to pay the Company in the amount of Two

Hundred Thirty Thousand Pesos (₱230,000.00 pesos) for the rights to own
and operate the Gu-Gu Manju and Gu-Gu Megatea franchise store (under
the franchise package see section 4-a). This sum is payable in full payment.
Once the payment is received by the A, the Company will automatically
consider the franchisee as the purchaser of the package this means that you
cannot withdraw your payment as it will be used for the package and the
cart needed for the business.
 a. Any request such as converting the food cart to kiosk or beyond the
proposed franchise package will be subjected for additional fees. The
quotation of the scope of work and materials will be sent to you.

b. The Franchisee’s grand opening will be on __________________

This opening can be changed by franchisor as these case

i. If many franchisee want to open same date

ii. If franchise items are not prepared as many opening

(Availability of baking machines, baking machines are from
Korea.)

iii. If there are some disaster such like fire, flood, earthquake or
other similar cause beyond Franchisor’s control.

2. This Contract recognizes preferential bargaining power in

_______________________________________________

3. The Company will assure that the market place

____________________________ will be granted to the franchisee solely
considering the population of the area.

4. After the Franchise contract is signed, the cart and the package which being
mentioned in the orientation will proceed after agreement. The franchisee will
receive the franchise package after 4 weeks from agreement of starting preparation
of all the items.

a. For the Food cart, After the Franchise contract is sign, the Food cart
which being mentioned in the orientation will proceed right after paying
fully to the given amount. The franchisee will receive the franchise
package after 4 weeks from agreement of starting preparation and paying
the full payment for the reservation of his/her preferred market location.
b. The Food cart fabrication schedule is determined by the coordination of
the franchisee with the head office especially for the recommended lay out,
materials and documents that are necessary to have a smooth flow of
work.
 c. Fabrication schedule for the food cart is subject for changes as this will
depend on the current work of our fabricators on site.
d. The following materials will be sent on the date of agreement

Gu-Gu Manju Package:

ITEMS QUANTITY
Hand Gloves 2 pairs
Measuring Cup 1 pc.
Bottle spray 1 pc.
Spatula 2 pcs.
Tongs 3 pcs.
Mixing Bowl (33x54) 1 pcs.
Egg Bowl (38cm) 1 pc.
Tray for filling (18x32) 1 pc
Small tray (16x18) 1
Wooden Ladle 1 pc.
Apron 2 pcs.
BBQ Brush 2 pcs.
Trays for fillings (33cm) 2 pcs.
Molding Machines 2 pcs.
Hand mixer 1 pc.
Squeezer 4 pc
Uniform 2 pcs.
Food cart/Kiosk 1 pc.
Paper bag size#1 1 bundle
Paper bag size#3 1 bundle
Hand bags 1 bundle
Set of ingredients 1 mixed powder, oil, filling
Balloons (N/A) 1k budget (refundable)
to be ordered only by the franchisee
Gu-Gu Megatea Package:

ITEMS QUANTITY

Milktea Shaker 2 pcs

Measuring Scoop For Powder 4 pcs

Powder Container (Flavor) 3 pcs

Milk Powder Container (3l) 1 pc

Tea Barrel (12l) 1 pc

Syrup Container 3 pcs

Syrup Measuring Cup (Jigger) 2 pcs

Long Stirrer 1 pc

Tea Net 1 pc

Pearl Scooper 2 pcs

Pearl Container 3 pcs

Scale 1 pc

Cup Organizer 1 pc

Training /Tutorial for Milk tea Video To be sent through email

5. The Franchisee needs to start paying the royalty fee on the second month of the
business in the amount of ₱4,000.00.

6. If the franchisee decides to renew the Franchise Contract it is fully understood

that the Franchisee will pay Forty Thousand Pesos (₱40,000.00) as the renewal fee
after 3 years upon signing of this Franchise Contract.

7. For the minimum sets to be delivered to 40~50 sets of ingredients and the
franchisee must have his/her own chest freezer that can accommodate the sets of
ingredients. The delivery of ingredients will always depend on the clients’ request.

a. The franchisee can choose his/her preferred flavors of fillings which is in

demand in his/her market place.

b. The franchisee must shoulder delivery charge for milktea ingredients.

 c. The franchisee must send the payment through bank transfer or remittance
center prior to the delivery date provided by the A.

d. The company will shoulder the shipping expenses as the franchisor’s

responsibility however you must pick up the ingredients in the port.
(Not applicable to Luzon franchisee)

e. Placing an order must be done 2-3 weeks prior to the delivery date this is for
the production side to prepare the expected amount of ingredients you want.

f. The Franchisee will shoulder manju delivery fee in these cases

 If order lesser than 40sets, Franchisee will shoulder lalamove

charge for delivery.

g. Sending back of the styro boxes is shouldered by the franchisee within 7

days after receiving the ingredients.

h. Keeping the styro boxes for any purposes the company will charge
PHP 500.00 per box, for mishandling of the boxes which cause damage, the
company will still be asking the same amount.

i. Report any damages upon receiving the boxes for us to address this to the
shipping line/s as the recipient you are not responsible for any charges.

j. For two months of no order the franchise will be subject for termination of
contract if no prior notice of their store/sales situation. And franchisee
needs to return franchise items what A provided. (All the expenses while
returning items will shoulder by franchisee.)

k. If franchisee ask replacement of ingredients what is damaged or have

problem, franchisee needs to request replacement within 24hours from
receiving ingredients. If franchisee requests after 24hours from receiving
ingredients, A wouldn’t replace ingredients.

8. A have right to check franchisee store without informing to franchisee.

9. Franchisee must report daily sales to franchisor.

10. Any use of materials or ingredients such as paper bags or additional powder to
the mixture that can compromise the products packaging and taste. The company
will void the contract and will decide to stop supplying the ingredients to your
store. In regard to that our market place (_______________) will be available for
the future affiliate who wants to put up a franchise store in the place once this is
not followed.

- If franchisee doesn't pay full franchise fee or ingredients fee, franchisor can have
right of confiscating all franchise items provided by franchisor.

-The franchisee must avoid selling drinks without labels or not from a known
company.

-The franchisee must utilize the menu provided and avoid adding the Gu-Gu
Manju products in a different menu. This is to set the standard and avoid any
conflicts. If franchisee sold food or package that is not from A, A can confiscate
franchisee items supplied from A without notification. And franchisee will pay
penalty ₱200,000 (Two Hundred Thousand Pesos) about using other ingredients
what is not coming from franchisor.

- If franchisee doesn’t order for a month without any information for closing store,
this agreement will be terminated. And franchisee needs to return franchise items
what A provided. (All the expenses while returning items will shoulder by
franchisee.)

-All expenses incurred in the case of seizure by the franchisee shall be borne by the
franchisee.

-After paying franchise fee, franchisee must find location for selling within 45days.
If not, franchisee will lost right of location to put store what franchisee insisted
during the meeting.

-All the expenses for returning franchise items what A provided will shoulder by
franchisee.

-In the event of a breach of contract or a lawsuit due to a difference of opinion, the
franchisee pays all attorneys' fees, court fees, and court-related expenses

-After termination or end of contract, Franchisee returns 2 Baking machines to

Franchisor
 The Company will also provide support in the form of:
- Ongoing training
- Updates to operating manuals
- Ongoing advertisement and promotions
- Ongoing consultation to help you run your business
- Providing with quality of goods and services

This Agreement is entered on ___ day of _____________, 2023

__________________________ __________________________

Franchisee Representative of the Company

Goo Goo Sweet Cake Inc.

Signed in the presence

ACKNOWLEDGMENT

Republic Of the Philippines }

In the City of Metro Manila }

BEFOR ME, a Notary Public in the City of Metro Manila this ____day of
_________ 2023, personally appeared___________________________ with
_______________No. _____________. Known to be the same person who
executed the foregoing Franchise Contract, with his witnesses, this instrument is
sealed with my notarial seal and acknowledged to me that the same is her free and
voluntary act.
WITNESS MY HAND AND NOTARIAL SEAL on the date and place above –
mentioned.
Doc. No. ____
Page. No.____
Book No.____
Series of 2023.