Change in Franchise Area Clause Samples
The Change in Franchise Area clause defines the conditions and procedures under which the geographic area covered by a franchise agreement may be modified. Typically, this clause outlines how either party can propose an expansion or reduction of the franchise territory, the approval process required, and any adjustments to fees or obligations that may result from such changes. By establishing clear guidelines for altering the franchise area, this clause helps prevent disputes and ensures both parties understand their rights and responsibilities if the territory needs to be adjusted during the term of the agreement.
Change in Franchise Area. In the event that the borders of the Franchise Area change, through annexation or otherwise, the Franchising Authority shall provide to the Company written notice of such change, including an updated map and an electronic list of all addresses in the Franchise Area. Franchise fees on gross revenues earned from Subscribers in annexed areas shall not be payable to the Franchising Authority until sixty (60) days after the Company’s receipt of such updated map and electronic list of addresses, and shall not be remitted to the Franchising Authority until the next regularly scheduled quarterly franchise fee payment as provided in Section 4.1.2 below.
Change in Franchise Area. In the event that the borders of the Franchise Area change, through annexation or otherwise, the Franchising Authority shall provide to the Company written notice of such change, including an updated map and an electronic list of all addresses in the Franchise Area. The Company shall not be required to pay franchise fees on gross revenues earned from Subscribers in annexed areas until sixty (60) days after receiving such notice.