Existing Franchises Clause Samples
Existing Franchises. Notwithstanding anything in Sections 4.4, 4.5, 4.6 or 4.7, the Executive shall not be prohibited from operating in their normal course any business owned and operated by the Executive under franchise agreements with the Company or any of its Affiliates or under other agreement with the Company or its Affiliates in effect as of the date of this Employment Agreement or as expressly hereafter authorized by the Company’s board of directors.
Existing Franchises. A statement of existing franchises held by the applicant indicating when the franchises were issued and when the systems were constructed and the present state of the system(s) in each respective governmental unit, together with the name, address and telephone number of a responsible governmental official knowledgeable of the applicant and of the system performance in each such case.
Existing Franchises. The Company shall assign and transfer to ------------------- Newco at Closing any and all rights, and Newco shall accept and agree to perform and shall have the sole authority to perform the obligations of Company, as franchisor, related to the Existing Franchise Agreements. To the extent that the prospective Franchisees for any of the Existing Franchises have not executed Franchise Agreements at the time of Closing (specifically, the three franchise locations identified as under development), the Company shall use its best efforts to cause such Franchisees to execute, when available, the New Franchise Agreement. However, with respect to each such Existing Franchise, the Company shall retain all rights to receive from the fees generated from such Existing Franchise Agreements, an amount equal to: (i) all Franchise Royalties (as hereinafter defined), plus (ii) any renewal franchise fees paid by the Existing Franchisee pursuant to the applicable Existing Franchise Agreement. The Company will use best efforts to persuade all of the Existing Franchisees with whom the Company has an ongoing contractual relationship to comply with the franchisee standards as may hereafter be established or required pursuant to the New Franchise Agreement as may be developed by Newco.
4.1.1 For purposes hereof, the term "Franchise Royalties" shall mean all amounts payable by each respective Franchisee to the Franchisor under the terms of the respective Franchise Agreement then in effect, based on or calculated as a percentage of the gross receipts collected by such Franchisee for the rental of guest rooms or otherwise, provided, however, the term Franchise Royalties shall specifically exclude for purposes hereof any amounts designated as reservation, advertising, or marketing fees and shall also exclude any other amounts payable which are designated or described as one time or non-recurring fees or charges other than regular monthly royalty fees, such as fees for renewal, placement, substitution, amendment, organization, initial placement, termination, or transfer.