12. The Franchise Agreement

The Franchise Agreement will be discussed in person with the prospective Franchisee and any further explanation required on particular clauses will be provided for them in a written format. No agreement will be entered into before both parties fully understand the terms and conditions of the Franchise Agreement.

Every Franchisee has a Geographical zone in which they are allowed to operate, and this is clearly stipulated in the Franchise Agreement. The boundaries of the Franchise Zone will be demarcated as per the Municipal maps for the area in which they operate. Each Franchise Zone will have approximately 40 000 residential units.

A Franchisee is restricted from operating outside of their demarcated Franchise Zone and may not infringe upon the zone of another Franchisee. If there is no Franchisee in an area outside of the Franchise Zone, it is considered the Franchisor’s zone, and special arrangements and referral payments need to be arranged with the Franchisor. This must be reduced to writing.

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