Restaurant Licensing Agreement Sample

Use only those ingredients, products, consumables, furniture and equipment that (i) comply with the standards and specifications specified by licensor in the operations manual or elsewhere and (ii) are purchased by suppliers designated or approved in writing by licensor. The licensor may, at any time and for any reason, designate one or more suppliers of ingredients, products, consumables, furnishings and equipment and require the licensee to purchase exclusively from designated suppliers from which only designated suppliers may be licensors or a related business of the licensor. If the licensor presents himself as a supplier, the licensor has the right to make a profit from the items it supplies. The licensor and its related companies may receive payments, discounts or other consideration from suppliers in return for suppliers who deal with the licensee and/or the system of restaurant franchisors and bad daddy licensees, and may use without restriction all amounts it has received. Licensor is not required to give Licensee a statement of Supplier payments or to share the benefit of Supplier payments with Licensee or other licensees of Bad Daddy Restaurant. Where the licensee wishes to obtain ingredients, products, consumables, furniture and equipment from suppliers other than those previously approved by the licensor and those items have not been supplied by the licensor as the sole supplier, the licensee must first submit to the licensor a written request for authorization for the purchase of such items, accompanied by information and samples: which the licensor may need. The licensor shall have the right to require, at regular intervals, that its representatives be able to inspect those items and/or suppliers and that samples of proposed suppliers or proposed items be delivered either to the licensor or to an independent testing body designated by the licensor. The authorisation of such inspections is a prerequisite for the initial and continuous approval of that supplier, manufacturer or distributor. Licensor must notify licensee in writing of its consent or refusal within ninety (90) days of receipt of such request and completion of such assessment and testing (if requested by licensor). The licensor may refuse such authorization for any reason, including its decision to limit the number of approved suppliers.

The above provisions shall only apply if the licensor has designated only one or only one supplier. «restaurant» means any retail catering establishment identified primarily by a brand and/or using the IP brand system and which centralises the offer and sale of goods and services authorised by dine-in, carry-out, catering, supply, kiosk, online distribution methods, 2 (3) The Law does not apply to the following ongoing commercial relationships or agreements: . 5. . . .