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Title: |
Area Marketing Agreement |
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Entities: |
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Date: |
2003 |
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Size: |
Preview shows 16KB of 124KB total |
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Price: |
$54 |
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ID: |
#1520558 |
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(TO AREA MARKETER FRANCHISE OFFERING CIRCULAR)
PAK MAIL CENTERS OF AMERICA, INC.
AREA MARKETING AGREEMENT
<PAGE>
PAK MAIL CENTERS OF AMERICA, INC.
AREA MARKETING AGREEMENT
-----------------------------------
Territory
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Date
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Area Marketer
<PAGE>
PAK MAIL CENTERS OF AMERICA, INC.
AREA MARKETING AGREEMENT
TABLE OF CONTENTS
Section Number Page Number
-------------- -----------
1. BACKGROUND AND PURPOSE...............................................1
2. DEFINITIONS..........................................................1
2.1. Territory...................................................1
2.2. Sales Year..................................................1
2.3. Franchise Agreement.........................................1
2.4. Franchisee..................................................2
2.5. System Manual...............................................2
3. SCOPE OF APPOINTMENT.................................................2
3.1. Appointment of Marketer/Scope of Operations.................2
3.2. Rights and Limitations to Territory.........................2
3.3. Franchisor's Reservation of Rights..........................2
4. FRANCHISE SALES PROCEDURES...........................................3
4.1. Sales Goals.................................................3
4.2. Franchise Registration and Disclosure.......................3
4.3. Advertising, Recruiting and Screening.......................4
4.4. Franchisor's Approval of Prospective Franchisees............4
5. PAYMENTS TO THE FRANCHISOR...........................................4
5.1. Initial Area Marketing Fee..................................4
6. PAYMENTS TO THE AREA MARKETER........................................5
6.1. Commissions on Sales Services...............................5
6.2. Commissions on Transfers of Franchises......................5
6.3. Service Fees................................................5
6.4. Application of Payments.....................................6
6.5. Setoffs.....................................................6
7. TRAINING ASSISTANCE..................................................6
7.1. Area Marketer Training......................................6
7.2. Length of Training..........................................7
7.3. Additional Training.........................................7
7.4. Seminars and Ongoing Training...............................7
8. FRANCHISOR'S OPERATING ASSISTANCE....................................7
8.1. System Manual...............................................7
8.2. Operating Assistance........................................8
9. AREA MARKETER'S OBLIGATIONS..........................................8
9.1. Hiring and Training of Employees of Area Marketer...........8
9.2. Commencement of Business....................................8
9.3. Sales Services..............................................8
9.4. Pre-Opening Support Services................................8
9.5. Ongoing Support Services....................................9
<PAGE>
9.6. Compliance with Franchise Agreement........................10
9.7. Area Marketer's Inspections................................10
10. MARKS...............................................................10
10.1. Ownership and Goodwill of Marks............................10
10.2. Limitations on Use.........................................11
10.3. Discontinuance of Use of Marks.............................11
10.4. Notification of Infringements and Claims...................11
10.5. Indemnification............................................11
11. CONFIDENTIAL INFORMATION............................................12
11.1. Confidential Information...................................12
11.2. Confidentiality and Noncompetition Agreement...............12
12. EXCLUSIVE RELATIONSHIP..............................................12
12.1. Exclusive Relationship.....................................12
13. OPERATING STANDARDS.................................................13
13.1. Standards of Service.......................................13
13.2. Compliance with Laws and Good Business Practices...........13
13.3. Accuracy of Information....................................13
13.4. Notification of Litigation.................................14
13.5. Ownership and Management of Business.......................14
13.6. Conflicting Interests......................................14
13.7. Insurance..................................................14
13.8. Proof of Insurance Coverage................................15
13.9. Advertising in Territory...................................15
13.10. Approval of Advertising....................................15
13.11. Accounting, Bookkeeping and Records........................15
13.12. Reports....................................................16
13.13. Late Charges...............................................16
13.14. Compliance with Third Party Agreements.....................16
13.15. Electronic Advertising.....................................16
14. INSPECTIONS AND AUDITS..............................................16
14.1. Inspections and Audits.....................................16
15. TRANSFERS...........................................................17
15.1. Transfers by the Franchisor................................17
15.2. Transfers by the Marketer..................................17
15.3. Conditions for Approval of Transfer........................17
15.4. Transfer to an Entity......................................18
15.5. Franchisor's Approval of Transfer..........................18
15.6. Death or Disability of Area Marketer.......................19
16. TERM AND EXPIRATION.................................................19
16.1. Term.......................................................19
16.2. Continuation...............................................19
16.3. Rights Upon Expiration.....................................19
16.4. Exercise of Option for Successor Area Marketer Rights......20
16.5. Conditions of Refusal......................................20
17. TERMINATION.........................................................20
17.1. By the Marketer............................................20
17.2. By the Franchisor..........................................20
<PAGE>
17.3. Rights and Obligations of the Area Marketer Upon
Termination or Expiration................................21
17.4. Confidential Information...................................22
17.5. Covenant Not to Compete....................................23
17.6. No Further Right to Payment................................23
17.7. Continuing Obligations.....................................23
17.8. State and Federal Law......................................23
18. RELATIONSHIP OF THE PARTIES.........................................24
18.1. Relationship of the Parties................................24
18.2. Payment of Third Party Obligations.........................24
18.3. Independent Contractors....................................24
18.4. Indemnification............................................24
19. MISCELLANEOUS PROVISIONS............................................25
19.1. Governing Law/Consent to Venue and Jurisdiction............25
19.2. Severability...............................................25
19.3. Modification...............................................25
19.4. Attorneys' Fees............................................25
19.5. Injunctive Relief..........................................25
19.6. Payment of Taxes...........................................26
19.7. No Waiver..................................................26
19.8. No Right to Set Off........................................26
19.9. Effective Date.............................................26
19.10. Review of Agreement........................................26
19.11. Entire Agreement...........................................26
19.12. Notices....................................................27
19.13. Cumulative Rights..........................................27
19.14. Acknowledgment.............................................27
EXHIBITS
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Exhibit I Rider to Area Marketing Agreement
Exhibit II Franchise Agreement
Exhibit III Guaranty and Assumption of Area Marketer's Obligations
Exhibit IV Statement of Ownership
<PAGE>
PAK MAIL CENTERS OF AMERICA, INC.
AREA MARKETING AGREEMENT
THIS AGREEMENT is made this ___ day of ________________, 20____, between
PAK MAIL CENTERS OF AMERICA, INC., a Colorado corporation, with its principal
offices at 7173 South Havana Street, Suite 600, Englewood, Colorado 80112
("Franchisor") and __________________________________________________________
_____________________________whose principal address is ____________
________________________________________________________ ("Marketer"), who on
the basis of the following understandings and in consideration of the following
promises, agree as follows:
1. BACKGROUND AND PURPOSE
1.1. The Franchisor has developed methods for establishing, operating and
promoting stores offering a variety of packaging, shipping, crating, freight
forwarding, mailing, communications and information services ("PAK MAIL Centers"
or "Centers"). These methods feature the use and license of the service mark
"PAK MAIL" and related service marks and trademarks (all referred to in this
Agreement as the "Marks") and the Franchisor's distinctive plans for the
establishment, operation and promotion of PAK MAIL Centers and related licensed
methods of doing business (the "Licensed Methods").
1.2. The Franchisor grants to qualified individuals, or to entities with which
such individuals are affiliated, the right and license to develop and operate
Centers using the Marks and Licensed Methods.
1.3. The Marketer desires to sell franchises for PAK MAIL Centers within a
certain geographic area, and to develop, support and provide services to PAK
MAIL Centers within such geographic area, under the terms and conditions which
are contained in this Agreement ("Marketer Business" or "Business").
1.4. The Franchisor is willing to grant the right to Marketer to sell franchises
for PAK MAIL Centers and to provide site selection and support services to PAK
MAIL Centers within a certain geographic area, under the terms and conditions
which are contained in this Agreement.
2. DEFINITIONS
2.1. Territory.
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"Territory" shall mean the geographical area described in Exhibit I
attached hereto and incorporated herein by reference.
2.2. Sales Year.
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"Sales Year" shall mean each 12-month period during the term of this
Agreement, as defined in Exhibit I attached.
2.3. Franchise Agreement.
--------------------
"Franchise Agreement" shall mean the forms of agreements (including,
without limitation, franchise agreement and any exhibits, riders, collateral
assignments of lease or sublease, and personal guarantees used in connection
therewith) used by the Franchisor from time to time in the granting of
<PAGE>
franchises for the ownership and operation of PAK MAIL Centers. Attached to this
Agreement as Exhibit II and incorporated herein by reference, is the
Franchisor's current form of Franchise Agreement. The Marketer acknowledges that
the Marketer will use the Franchisor's then current form of franchise agreement
and that the Franchisor, in its sole discretion, may from time to time modify or
amend in any respect the form of franchise agreement and related agreements,
including but not limited to, modifying fees customarily charged in granting PAK
MAIL Center franchises.
2.4. Franchisee.
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"Franchisee" shall mean any person, corporation, partnership or other
entity that has entered into a Franchise Agreement with the Franchisor.
2.5. System Manual.
--------------
"System Manual" means the manuals, technical bulletins or other written
materials covering the proper operating and marketing techniques of a Marketer
Business and standards and specifications for implementing the Licensed Methods.
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