1-800-905-GEEK/GEEKS ON CALL FRANCHISE AGREEMENT
0-000-000-XXXX/GEEKS
ON CALL
TABLE
OF
CONTENTS
Section
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Page
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1.
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Grant
of Franchise
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1
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2.
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Term
and Renewal
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1
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3.
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Territory
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1
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4.
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Fees
and Payments
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2
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5.
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Obligations
of Franchisor
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4
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6.
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Obligations
of Franchisee
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5
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7.
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Reports
and Review
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7
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8.
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Termination
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7
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9.
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Post
Termination Obligations
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8
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10.
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Covenant
Not to Compete
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9
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11.
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Independent
Contractor
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10
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12.
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Death
or Incapacity
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10
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13.
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Assignability
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11
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14.
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Non-Waiver
of Breach
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13
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15.
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Governing
Law
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13
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16.
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Modification
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13
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17.
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Release
of Prior Claims
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14
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18.
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Indemnification
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14
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19.
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Notices
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14
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20.
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Full
Understanding
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14
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21.
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Acknowledgments
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14
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22.
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Guaranty
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14
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Schedule
A – Territory
Schedule
B – Special Stipulations
i
0-000-000-XXXX/GEEKS
ON CALL FRANCHISE AGREEMENT
1. |
GRANT
OF FRANCHISE
|
Geeks
On
Call America, Inc. a Virginia corporation (“Geeks On Call”, “0-000-000-XXXX”,
“Franchisor”, “we”, “us”, or “our”) has developed a system for the operation of
computer support services (the “System”). The System utilizes special marketing
techniques and operating procedures to facilitate the provision of computer
support and related services targeted primarily at the small business and
residential computer users.
You
have
applied for a franchise that utilizes our system and our Marks (the “Franchised
Business”). Subject to the terms of this franchise agreement (the “Agreement”),
we grant you a 0-000-000-XXXXX/Geeks On Call franchise. “You” is the franchisee
entity (individual, partnership, corporation or limited liability company)
which
is granted the Franchise. You also includes each owner of an interest in the
franchisee entity for purposes of Sections 5.i., 6.a., 8.a., 8.b., 8.c.,
9.a.-j., 10, 12, 13, 15, 16, 17, 19 and 20. This Agreement will allow you to
operate a computer support service using our system and our Marks within the
Territory described on Schedule A. You agree to abide by the terms of this
Agreement.
You
recognize and agree that the nature of the computer support business is such
that complete uniformity is not always practical or desirable and that we,
in
our sole discretion, may vary the terms of this Agreement and the standards
of
operation of the Franchised Business to accommodate the peculiarities of a
particular situation and/or Territory. You have no recourse against us if other
franchisees are granted allowances, which you are not granted.
2. |
TERM
AND RENEWAL
|
a.
Term. This
Agreement will be effective for an initial ten (10)-year term beginning on
the
Effective Date specified in this Agreement.
b.
Renewal. You
may
renew for additional ten (10)-year terms by signing our then current franchise
agreement if you are in compliance with this Agreement and desire to renew.
You
may also renew future franchise agreements if you are in compliance with such
agreements and meet the other conditions therein for renewal by signing our
then
current franchise agreement. There is no fee for renewals, however you must
exercise a general release of all claims that you might have against us.
Royalties and the nature and amount of our right to charge an advertising fee
will not be raised upon renewals. Other terms and conditions may vary. If you
wish to renew, you must notify us in writing at least 180 days before the
expiration of this Agreement.
3. |
TERRITORY
|
Your
primary geographic area of responsibility a Territory is described in Schedule
A
of this Agreement (the “Territory”). You will not receive an exclusive area from
us, but you will receive a primary geographic area of responsibility within
which you will be primarily responsible for providing service to customers
located within that geographic area. Except as described below, other
franchisees may not solicit customers within your Territory, but may be
dispatched within your Territory to maintain response time performance based
on
service call demand or a special request by the customer or us for a particular
franchisee to fill the customer’s service needs. Within your Territory,
dispatching of service calls may be assigned to other franchisees to satisfy
customer service demand and protect the system. No
other
franchisee may solicit customers in your Territory. They may, however, solicit
national or regional accounts which have business locations in their territories
and yours. Subject to Section 4.j., they may offer you the right to service
that
account, but they may not service the account themselves unless we dispatch
them
when you are unavailable. If you or your Designated Manager die or are
incapacitated as described in Section 13, we may authorize other franchisees
to
solicit business and service customers in your Territory until your Franchise
has been assigned to an approved transferee or until we have approved a new
Designated Manager for your Franchised Business. We may sell any other Territory
to other franchisees or locate company owned businesses in such
territories.
1
We
may
grant franchises in other lines of business in your Territory. We may establish
in your Territory other franchises whose principal product or service is not
computer support services and which uses Marks other than those granted
hereunder. We reserve the right to establish other channels of
distribution, other
than through a mobile business, which provides goods and/or services similar
to
those provided by 0-000-000-XXXX/Geeks
On
Call franchisees. We reserve all rights to the use and appearance of our Marks
on the Internet.
4. |
FEES
AND PAYMENTS
|
a.
Initial Franchise Fee. You
must
pay us an initial franchise fee in the amount of ______________ Dollars
($__________). If you are executing this Agreement pursuant to an Area
Development Agreement, the entire fee is due when you execute this Agreement.
Otherwise, the franchise fee is payable in two (2) installments of fifty percent
(50%) each. The first installment is paid when you sign the Agreement. The
second installment is paid before you begin training. The initial franchise
fee
is refundable if you or your Designated Manager do not pass our Effective
Operations Training Program (“Operations Training”) in accordance with our
current passing standards for Operations Training, provided that you return
to
us all materials which we distributed to
you
during Operations Training.
b. Initial
Advertising Fee.
You must
pay us an initial advertising fee in the amount of Fifteen Thousand Dollars
($15,000). The
initial advertising fee is refundable if you or your Designated Manager do
not
pass our Operations Training in accordance with our current passing standards
for Operations Training, provided that you return to us all materials which
we
distributed to you during Operations Training. The initial advertising fee
is
placed in our advertising, sales and marketing account where it is commingled
with other initial advertising fees and advertising fees. It is not used to
promote your or any other individual franchisee’s Franchised Business.
c. Approval/Fee
Refund.
We have
ten (10) days from the date you complete our Operations Training to approve
or
deny your request to become a franchise owner based upon our criteria and
standards in effect at the time. Should we deny your request, upon your
returning to us all materials you received in training, we will refund any
fees
you paid to us.
d. Royalties.
You must
pay us a weekly royalty fee of eleven percent (11%) of Gross Receipts. Gross
Receipts include all revenue from all services and products offered (including
but not limited to computer troubleshooting, maintenance, upgrading, parts,
training, networking, consulting, programming, affiliates’ commissions and
necessary package software), excluding customer discounts and sales tax, but
not
service fees for credit card transactions and bank drafts. Royalties will be
drafted weekly from your business bank account, and may also be deducted from
amounts due you for revenues disbursed to you from receivables collections
and
bank drafts we process. Royalties are due weekly on the second business
day of the week for the prior week ending on Sunday.
e. Advertising
Fee. You
must
pay us an advertising fee of Two Hundred Seventy-Five Dollars ($275) per week
beginning the 1st week of operations. Advertising fees will be drafted weekly
from your business bank account, and may also be deducted from amounts due
you
for revenues disbursed to you from receivables collections and bank drafts
we
process. Advertising fees are due weekly on the second business
day of the week for the prior week ending on Sunday. Advertising fees may be
increased upon thirty (30) days prior written notice, but by no more than
twenty-five percent (25%) over the term of this Agreement.
g. Payment
Period. You
must
pay us ongoing royalties and advertising fees weekly on the second business
day of the week for the prior week ending on Sunday. We
reserve the right to modify this payment schedule in the Operations
Manual.
2
h. Service
Agreement Marketing.
If you
request that we set up appointments for you with businesses in your Territory
from contact information which you provide to us, and we agree to provide this
service to you, we will charge you Thirty Dollars ($30) for each appointment
which we set up and which is kept by the customer. The fee is due on the same
day as royalty fees, the week after you receive our invoice, regardless of
whether the appointment results in a signed service contract. We may increase
the fee on thirty (30) days notice.
i. Electronic
Dispatch Service.
Each
technician employed or retained by you must obtain and carry with him or her
during business hours the electronic paging or communications devices we
prescribe. You
also
must subscribe to and, if we require, pay the fees we or our designee charge
for
our electronic dispatch service. Those fees are subject to change upon thirty
(30) days’ notice, however, the fees will not exceed $50 per month.
j. National/Regional
Accounts.
If we or
another franchisee enter into an on-site service agreement with sites in your
Territory for which you provide service, you must pay us or the franchisee
ten
percent (10%) on collected monies from these agreements for their term and
during any future renewal periods. If we collect payments from the customer,
we
will remit ninety percent (90%) of the amount collected to you, less royalty
and
advertising fees you owe on that xxxx. You may not sign an agreement to provide
services to a national/regional account outside your Territory without our
prior
written approval and that of each franchisee who would be obliged to service
the
customer. If you are successful in identifying and helping to broker a formal
service agreement for a regional/national account, then you are entitled to
a
10% royalty on gross receipts from service provided by other franchisees on
the
account on service performed outside your territory.
k. Complaint.
You must
pay us a fee of Fifty Dollars ($50) for any customer complaint that we must
respond to.
l.
Service
Assistance.
In
addition to the complaint fee above, we may charge for technical time spent
(currently One Hundred Twenty Dollars ($120) per hour) rectifying any deficient
performance and satisfying the unhappy customer. Service assistance fees will
also be billed when one of your service agreement customers needs assistance
and
you are unable to provide timely service to that customer, as will be determined
by us in our sole discretion. Service assistance fees are subject to change
on
thirty (30)-days notice to reflect changes in cost and will be drafted
weekly.
m. Interest.
You must
pay interest of eighteen percent (18%) (compounded daily) per year or the
highest amount permitted by law on any amounts you owe us that are more than
fifteen (15) days past due.
n. Audit.
You must
pay any cost we incur for any audit we perform which results in a finding that
you have failed to comply with the franchise agreement or you have understated
by three percent (3%) or more in any report of gross receipts. Our costs will
include employees’ travel, room and board expenses. Payment is due by you upon
receipt of our invoice.
o. Additional
Training.
You may
request additional training and/or we may require that your new employees
successfully complete our three (3) day Operations Training (customer service
and procedures) and the fees for additional training will be One Thousand
Dollars ($1,000) per day.
p. Transfer
Fee. In
the
event that you transfer your Franchised Business, you must pay us a fee of
Five
Thousand Dollars ($5,000) at the time of transfer. We may increase or decrease
this fee by the amount of change in the Consumer Price Index – All Urban
consumers, published by the U.S. Department of Labor, or a reasonably similar
successor index.
q. Late
Report Fee.
You must
pay us Two Hundred Dollars ($200) for each weekly report of Gross Receipts
which
is not received on or before the date it is due.
3
r. Amendment
Fee.
If you
request and we agree to amend this Agreement, you must pay us an Amendment
Fee
of Two Thousand Five Hundred Dollars ($2,500).
5. |
OBLIGATIONS
OF FRANCHISOR
|
a. Training.
We
provide a five (5)-day Operations Training program, which is required of new
franchisees and employees who will be providing services. We do not charge
for
the Operations Training at the startup of your Franchised Business, but you
are
responsible for all expenses you incur as a result of training, such as travel,
lodging and entertainment. However, any additional training that you or your
employees may require will be billed at Five Hundred Dollars ($500) per day.
b. Operations
Manual. We
will
loan you a copy of our Operations Manual to offer guidance in the operation
of
your Franchised Business.
c. Vehicle
Approval. The
vehicle we have approved is a Chrysler PT Cruiser (Blue or Black in Color),
however, other similar vehicles may be approved by us. No vehicle may be used
without our approval. Vehicles must meet our specifications including body
style, color and model year. We
do not
currently sell or lease vehicles. Our
approved decals must also be installed on the vehicle. Your investment may
vary
depending upon your decision to use an existing vehicle, to lease a new or
used
vehicle, or to purchase a new vehicle. Painting or repairs that may be required
for vehicle approval may require additional expense.
d. Sources.
We
will
designate approved or recommended sources for decals, advertising materials,
supplies, parts, communications equipment and software products. If we designate
one or more approved sources for particular items, you will use only such
approved sources for those items.
e. Advertising,
Sales and Marketing.
We raise
fees related to marketing through the initial advertising fees and ongoing
advertising fees collected from our franchisees. Although we designate these
fees for use in advertising, sales and marketing activities, we do not maintain
them in a separate fund. Rather, we spend them as we determine is most
beneficial to promoting our Marks and System. We use advertising fees to
develop, produce, distribute and/or conduct advertising programs, marketing
programs, public relations and marketing research. We
may
spend advertising fees on local, regional or national advertising as we
determine appropriate. We produce advertising in-house and through a local
advertising agency. Advertising, sales and marketing may include advertising
to
sell franchises. We
plan
to allocate from the income of any company-owned 0-000-000-XXXX/Geeks
On
Call businesses we operate an amount which is comparable to what franchisees
pay
us. However, the franchise agreement does not require us to do so.
You
may
only use advertising material we have prescribed or approved, and you may only
distribute it to people or businesses located in your Territory. All advertising
must carry only our toll-free phone number and our headquarters address.
We
pay
all costs of marketing activities, including a share of corporate overhead
related to advertising, sales and marketing, with advertising fees. We do not
guarantee that you will benefit directly from any advertising or marketing.
f. Billing.
We
own
all accounts which you service. However, you have the right to handle all
billing and collections of monies due on such accounts. We may require you
to
use a specified form for customer engagements and forward copies of them to
us.
g. Technical
Support.
We will
provide reasonable telephone and/or internet support for your questions
regarding computer support services during normal business hours.
h. Operational
Support.
We will
advise you in the budgeting for and operation of your franchise.
4
i. Advanced
Training/Regional Meetings.
We may
provide a one (1) to two (2) day advanced training forum for experienced
franchisees. To attend advanced training, you must have completed the Operations
Training Program. Advanced training is held at various sites which we select
across the country. The agenda for advanced training varies but often focuses
on
improving business management skills in order to increase profitability. We
do
not charge for this training but you are responsible for all expenses that
you
incur as a result of attending training, such as travel, lodging and
entertainment.
j. Customer
Dispatch Center.
We will
provide a call center operation for accepting customer request for services
and
products and dispatching.
k. Group
Discounts. From
time
to time we may provide you with the opportunity to participate in group
purchasing programs which offer group discounts. The discounts and terms for
any
such opportunities will vary.
6. |
OBLIGATIONS
OF FRANCHISEE
|
a. Training.
You, if
you are an individual, or your Designated Manager, if you are an entity, must
attend and successfully complete our Operations Training before you may operate
the Franchised Business.
b. Use
of Our Marks.
You
agree to use our trade names, service marks and trademarks (collectively, the
“Marks”) as we develop them. All uses of our Marks require our approval in
advance of use and you agree to obtain our prior written consent before using
our Marks in any way. For example, you must obtain our approval prior to using
our Marks in advertising or marketing, including any website. You may not
maintain a website or any Internet advertising in connection with the Franchised
Business or our Marks without our prior written approval. You agree not to
use
any marks which could be confused with our Marks. We may replace, modify or
add
to our Marks. In the event that we replace, modify or add additional Marks,
you
agree to update or replace yours signs, supplies, etc. to reflect the new Marks,
at your expense, in the time frame we provide at the time of such an update.
You
may not use our Marks in the name of any legal entity you create to own and/or
operate the Franchised Business. You may register the fictitious tradenames
“1-800-905-GEEK” or Geeks On Call®” with all appropriate legal authorities in
order to operate the Franchised Business. You must notify us if you learn of
anyone who is using or claims the right to use our Marks. If we take action
against any unauthorized user of our Marks, we may require you to assist us,
at
your expense, in our efforts to enforce our rights in the Marks.
c. Signs/Decals.
You must
display on your service vehicle(s) a decal that we have approved. We must
approve all your signs or decals before you order or display them.
d. Starting
Date.
You
agree to begin operations and be open for business no later than ninety (90)
days following the Effective Date of this Agreement.
e. Operating
Hours.
You
agree to accept customer service request dispatches Monday through Friday,
9:00
a.m. to 5:00 p.m. and Saturdays 9:00 a.m. to 12:00 p.m. year-round, federal
holidays excluded, or such other hours as we may specify in the Operations
Manual. Notice of non-availability to receive and service dispatch customer
service requests must be given in writing forty-eight (48) hours prior via
facsimile or as otherwise prescribed in the Operations Manual.
f. Dispatch
Software.
Our
designated third party is the only approved supplier of dispatch processing
software and the wireless receiving device.
g. Wireless
Dispatching/Communication.
You must
obtain and maintain a wireless dispatch communication service for each
technician you employ or retain in the Territory. You must own or lease
equipment and subscribe to a wireless service provider that we
approve.
5
h. Equipment.
You must
obtain and use computer systems which meet our then current specifications.
We
may update the specifications. When the specifications are updated, you must
either obtain or upgrade the computer systems such that your equipment meets
our
then current specifications.
i. Insurance.
During
the term of this Agreement, you must procure and maintain an insurance policy
or
policies with at least the following coverage, or such other coverage as may
be
specified in the Operations Manual:
Comprehensive
General Liability:
|
$1
million
|
as
required by your state law
|
|
Other
Insurance:
|
as
provided in the Operations
Manual
|
You
must
name us as additional insured on these policies.
j. Internet
Service. We
may
also require e-mail and Internet connection set-up through an approved
provider.
k. Operations
Manual.
We will
loan you a copy of the Operations Manual. The Operations Manual is a detailed
extension of this Franchise Agreement which covers standards to be maintained,
operating procedures and other information. We may change this Operations Manual
from time to time in order to adjust for competitive changes, technological
changes, legal requirements and attempts to improve in the marketplace. You
agree to be bound by the Operations Manual and future modifications of it.
You
must operate the Franchised Business according to the then current Operations
Manual in effect, including any modifications, amendments or supplements made
to
the Operations Manual after the date of this Agreement.
l. Participation.
You
agree that franchise services will be provided under your direct supervision
and
control and/or under the direct supervision and control of a full time
Designated Manager who has been approved by, and not later disapproved by,
us.
We will not approve a Designated Manager or a computer technician prior to
their
successful completion of the Operations Training.
m.
Quality Standards.
You must
perform all computer support service and other work provided by your franchise
carefully, timely, accurately and in accordance with prevailing industry
standards and our Operations Manual. As may be explained further or modified
in
the Operations Manual, you specifically agree to uphold the quality standards
as
specified in the Operations Manual.
n.
Billing. You
agree
that we own all accounts which you service no matter how procured. However,
you
have the right to handle all billing and collections of monies due on such
accounts. If we prescribe forms for you to use to accept or engage clients
or
work, you agree to use such forms and forward copies of them to us.
o. Employee
Training.
You must
hire sufficient staff to properly carry out the Franchised Business. You must
also conduct and require each of your employees to complete an employee policy
and procedure training course as defined by us. You are solely responsible
for
hiring, firing, compensating, paying applicable payroll taxes and day to day
supervision and control over your employees.
p. Vehicle
Condition.
You must
obtain for each technician employed by you a vehicle which meets our standards
and you must maintain it so as to present a neat and professional image.
q. Supplies,
Inventory and Equipment.
You
agree that in order to establish a standard and consistent delivery of computer
support services, certain items must be used in the operation of the franchise.
You must use the items set forth as required in the Operations Manual
(e.g.,
customer invoices, air cans, uniforms, contracts, and rolling inventory). You
are responsible for the cost of all supplies, furniture, equipment and other
items which may be necessary to conduct the Franchised Business.
6
r. Laws
and Regulations. You
agree
to comply with all federal, state and local laws and regulations. You will
secure all necessary permits, certificates, licenses and consents to operate
your business.
s. Advertising,
Sales and Marketing. You
must
use trade names, service marks and trademarks (“Marks”) as we develop them. At
this time, our Marks include “Geeks On Call®” and “0-000-000-XXXX™”, as well as
the other Marks listed in our Franchise Offering Circular. You must obtain
our
written consent before using our Marks in any way. For example, you must obtain
our approval prior to using our Marks in advertising, sales and marketing.
You
may not use any marks, which could be confused with our Marks. In the event
that
we replace, add to or modify our Marks, you agree to update or replace your
signs, supplies, etc. to reflect the new marks, at your expense, in the time
frame we provide at the time of such change. We must approve all advertising,
sales and marketing materials before you use such materials. You may purchase
such materials from any vendor.
7. |
REPORTS
AND REVIEW
|
x. Xxxxx
Receipts Report. You
must
send us a Gross Receipts report in the manner, form and times we specify.
Presently, you must report your Gross Receipts on the first business day of
each
week for Gross Receipts during the previous week.
b. Financial
Reporting. By
January 30th
of each
year, you must send us an unaudited balance sheet and a profit and loss
statement, in the manner and form we specify, for the twelve (12)-month period
ending December 31st
of the
prior year. By March 15th
of each
year, we must receive a copy of your Federal Income Tax Return for the previous
year for your business entity.
c. Review.
We
have
the right to review, inspect and copy, during normal business hours, all of
your
business records related to the Franchised Business, including tax returns
and
bank statements showing revenues from the Franchised Business.
d. Mail
Reviews.
If we
request a copy of your customer receipts (paper and/or electronic) or any other
business records related to the Franchised Business, you must send us at your
expense these records within five (5) days of receiving our
request.
e. Electronic
Review. We
may
cause programs to run on your computer systems that may send information to
us.
We agree that the use of such programs will not unreasonably interfere with
your
operation of the Franchised Business, and you agree to allow such programs
to
run without interference by you.
8. |
TERMINATION
|
a. You
may
terminate this Agreement only through non-renewal as set forth in Section 2.b.
of this Agreement. If you terminate this Agreement, you must comply with all
of
the post termination provisions of this Agreement.
b. We
may
terminate this Agreement without notice and the opportunity to cure for any
of
the following:
(i)
|
If
you become insolvent or take any steps to seek protection from creditors,
or if a receiver (permanent or temporary) is appointed by a creditor
or a
court of competent authority or if you make a general assignment
for the
benefit of creditors;
|
(ii)
|
If
a final judgment of record against you or your Franchised Business
remains
unsatisfied for 30 days or longer;
|
7
(iii)
|
If
you commit a material violation of any law, ordinance, rule or regulation
of a governmental agency or department reasonably associated with
the
operation of the Franchised
Business;
|
(iv)
|
If
you discontinue the active operation of the Franchised Business in
the
Territory for five (5) consecutive business
days;
|
(v) |
If
you fail to open for business within ninety (90) days of the Effective
Date of this Agreement;
|
(vi) |
If
you market to clients outside the
Territory;
|
(vii) |
If
you fail to use in the Territory the systems we provide or
recommend;
|
(viii) |
If
each of your technicians do not obtain and maintain the minimum required
certifications;
|
(ix) |
If
you fail to report work orders as outlined in the Operations
Manual;
|
(x)
|
If
you commit three (3) or more breaches of this Agreement, the Operations
Manual or any other agreement related to the Territory in any twelve
(12)-month period regardless of whether such breaches were cured
after
notice; or
|
(xi)
|
If
you fail to maintain the required
insurance.
|
c. We
may
terminate this Agreement, after sending you notice and an opportunity to cure
within seven (7) days, if:
(i)
|
you
violate any other term or condition of this Agreement, the Operations
Manual, or any other agreement related to the
Territory;
|
(ii)
|
any
amount owing to us relating to the Territory is more than thirty
(30) days
past due; or
|
(iii)
|
you
fail to submit required reports or other information as provided
herein or
if you make any false submission in connection
therewith.
|
9. |
POST
TERMINATION OBLIGATIONS
|
In
the
event that this Agreement expires, is not renewed or is terminated for any
reason by any party, including a sale of the Franchised Business, you must
immediately:
a. |
Remove
all 0-000-000-XXXX/Geeks On Call decals or signs from all of your
vehicles
and other premises;
|
b.
|
Stop
identifying yourself as a 0-000-000-XXXX/Geeks On Call franchisee,
never
hold yourself out as a former 0-000-000-XXXX/Geeks On Call franchisee
and
cease, and not thereafter commence, use of any of our Marks or any
marks
which are likely to be confused with our
Marks;
|
c. |
Stop
using all literature received from us and other items bearing our
Marks;
|
d. |
Pay
to us all amounts owing to us;
|
e.
|
Transfer
to us all telephone numbers, listings and advertisements used in
relation
to the Franchised Business and deliver to us copies of such documents
of
transfer;
|
8
f.
|
Deliver
to us all copies, including electronic copies, of lists and other
sources
of information containing the names of customers who patronized the
Franchised Business;
|
g. |
Deliver
to us all customer files and records, and all copies
thereof;
|
h. |
Deliver
to us the copy of the Operations Manual and all updates which we
loaned to
you;
|
i. |
Cancel
all fictitious name listings which you have filed for use of any
of our
Marks; and
|
j. |
Adhere
to the provisions of the covenant not to compete and any other covenant
herein that requires performance by you after you are no longer a
franchisee.
|
10. |
COVENANT
NOT TO COMPETE
|
a. In-Term. During
the term of this Agreement, you agree not to directly or indirectly, be employed
by, work with, be engaged in, be interested in or advise, invest or contribute
money to, lend money to or guarantee the debts or obligations of, any person
or
entity engaged in computer support services or any other business being carried
on by us or our franchisees under franchise agreements.
b. Post-Term.
You
agree that for a period of two (2) years following the termination, expiration,
transfer or other disposition of this Agreement or the Franchised Business,
you
will not directly or indirectly, be employed by, work with, be engaged in,
be
interested in or advise, invest or contribute money to, lend money to or
guarantee the debts or obligations of, any person or entity engaged in computer
support services, within the greater of ten (10) miles of your Territory, or
within any franchise territory which is adjacent to your Territory. However,
if
you are an individual, you may provide computer support services for your
employer, but only for computers used in the employer’s own
business.
c. For
two
(2) years after the Agreement expires or terminates, you will not contact,
for
the purpose of selling computer support services which are the same as or
similar to those you are authorized to sell under this Agreement, any person
or
organization which was, at any time during the two (2)-year period prior to
such
expiration or termination, a customer to which you sold such services, or which
you know is a customer of another franchisee located within ten (10) miles
of
your Territory. “Customer” includes successors of any customer who reorganized,
merged, acquired or transferred their business. “Contact” includes responding to
another’s request for services.
d. You
acknowledge that a violation of any of the covenants in this Section 10 may
cause irreparable injury to us and/or to our franchisees, for which money
damages may not adequately compensate us. Accordingly, you agree that a court
or
arbitrator may enjoin your violation of these covenants during the pendency
of
any dispute resolution proceeding between us, and you agree that we have no
duty
to post a bond as a condition of receiving such interim relief.
e. You
agree
not to disparage us, including our current and former employees and
directors.
f. You
also
agree that you will never, directly or indirectly during or after the term
of
this Agreement, divulge to or use for the benefit of any person or entity
outside of the 0-000-000-XXXX/Geeks On Call franchise system, any information
contained in our Operations Manual, any information concerning customers served
by your Franchised Business, any information related to marketing, or any other
systems or methods of operation of our business or that of our franchisees.
You
agree not to do any act prejudicial or injurious to our goodwill or name.
Information furnished to your employees will be reasonably limited to that
which
directly relates to and assists in the proper performance of such employee's
duties.
g. You
hereby acknowledge that the qualifications to be a 0-000-000-XXXX/Geeks On
Call
franchisee are special, unique and extraordinary, and that this Agreement would
not be entered into by us except upon condition that such restrictive covenants
be embodied herein.
9
h. You
acknowledge and agree that the provisions of this Section are reasonable, valid
and not contrary to the public interest and all defenses to the strict
enforcement thereof by us are waived.
i. All
of
the covenants contained in this Section will survive any termination or
expiration of this Agreement.
j. If
any
covenant or provision herein is determined to be void or unenforceable, in
whole
or in part, it will be deemed severed and not to affect or impair the validity
of any other covenant or provision of this Section.
We
may
reduce the temporal or geographic scope of any covenant in this Section 10,
which reduction shall become effective upon your receipt of notice of it. You
agree to comply with it as modified.
11. |
INDEPENDENT
CONTRACTOR
|
You
are
an independent contractor. You are not our agent, partner, employee, or a
participant in a joint venture and have no authority to hold out as such to
third parties. You do not have any authority to bind or obligate us. We are
not
and will not be liable for any act, omission, debt, or other obligation of
yours.
You
are
responsible for all loss or damage and for all contractual liability to third
parties originating in or in connection with the operation of the Franchised
Business and for all claims or demands for damage directly or indirectly related
thereto. You agree to defend, indemnify and hold harmless Franchisor and its
employees of and from and with respect to any such claim, loss or
damage.
12. |
DEATH
OR INCAPACITY
|
If
you or
your Designated Manager becomes incapacitated to the extent that we determine
he
or she is unable to conduct normal business functions, or if you or your
Designated Manager dies, we at our option may allocate service calls in your
Territory to neighboring franchisees without any obligation to compensate you
or
your estate, or we may appoint an interim Designated Manager. The interim
Designated Manager who may be another franchisee shall operate the Franchised
Business for the benefit of your estate until the Franchise has been transferred
to a new franchisee in compliance with Section 13, until the Franchise has
been
terminated, or until we approve a new Designated Manager to operate the
Franchised Business for the benefit of your Survivors. Your Survivors include
your estate, others owning an interest in your Franchised Business, including
any trust which owns an interest in the Franchised Business under terms which
we
have approved, and the beneficiaries of any will or trust you have
established.
Absent
agreement to the contrary, the interim Designated Manager’s compensation shall
equal fifty percent (50%) of the net proceeds collected from amounts the
Designated Manager bills on behalf of your Franchised Business. The Franchised
Business shall be liable for paying sales taxes and all other expenses of the
Franchised Business from its share of the proceeds. A Designated Manager may
condition offering his or her services on the Survivor’s agreement to different
compensation or to an indemnification agreement.
We
have
no duty to appoint a Designated Manager for you or for your estate. We do not
represent or warrant that any Designated Manager will operate the business
in a
way which is profitable. We will condition our approval of a Designated Manager
on your Survivors releasing us from liability for acts or omissions of a
Designated Manager.
If
a
Survivor does not desire to acquire or retain your or your Designated Manager’s
interest, the Survivor will have a reasonable period of time, but no more than
180 days, to make a transfer acceptable to us, subject to the procedures
described in Section 13.
10
13. |
ASSIGNABILITY
|
We
may
assign this Agreement to an assignee who agrees to remain bound by its terms,
without obtaining your approval. We will not permit you to sub-license or
sub-franchise the Franchised Business. Your interest under this Agreement or
your ownership in the Franchised Business may be transferred or assigned only
if
you comply with the following provisions. No interest may be transferred unless
or until you are in full compliance with this Agreement. No accounts or assets
of the Franchised Business may be assigned apart from an assignment of this
Agreement.
a. If
you
have received and desire to accept a signed, bona fide offer to purchase or
otherwise transfer an interest in the Franchised Business or any interest in
this Agreement or you (the franchisee entity), you will grant us the option
(the
“Right of First Refusal”) to purchase the Franchised Business or interest in you
as hereinafter provided.
b. If
you or
the owner of any interest in the franchisee entity desires to make a transfer,
such person or entity (“transferor”) must comply with the following terms,
conditions and procedures to effectuate a valid transfer:
(i) |
If
any proposed assignment of any rights under this Agreement, or if
any
other transfer which, when aggregated with all previous transfers,
would,
in our reasonable opinion result in the transfer of effective control
over
the ownership of this Agreement and/or operation of the Franchised
Business, a material part of your assets or you, (the franchisee
entity),
the transferee must apply for a Franchise and must meet all of our
then
current standards and requirements for becoming a franchisee (which
standards and requirements need not be
written).
|
c. Regardless
of the degree of control which would be affected by a proposed
transfer:
(i)
|
The
proposed transferor shall first notify us in writing of any bona
fide
proposed transfer and set forth a complete description of all terms
and
fees of the proposed transfer in a manner we prescribe, including
the
prospective transferee’s name, address, financial qualifications and
previous five (5) years’ business
experience;
|
(ii)
|
The
transferor shall provide us with a copy of any written offer or
agreement
to purchase, signed by the proposed transferee, together with copies
of
any documents referenced in the offer or agreement, including notes
and
security agreements. If all material terms of the proposed sale
are not
described in the offer or agreement, the transferor shall provide
details
of all such terms in its submission to us, accompanied by the proposed
transferee’s written agreement to the
terms.
|
(iii)
|
The
proposed transferor shall provide us with any additional information,
agreements, certifications or documents we request for use in our
evaluation of whether to approve the transfer or to exercise our
right of
first refusal.
|
(iv)
|
Upon
receipt of our request, the proposed transferor shall promptly
provide us
with access to any property, documents or records relevant to the
transaction and to the interest which is the subject of the transfer.
Once
we have received all materials submitted by the proposed transferor
and
have reviewed all property, records and documents we have requested,
within thirty (30) days we shall notify the transferor of our decision
to
exercise our right to acquire all or any part of the interest being
transferred, and the conditions, if any, under which we will approve
the
proposed transfer.
|
(v)
|
If
the Franchised Business is being offered in combination with one
or more
other items, we have the right to purchase the interest we select
at the
price and under the terms offered or agreed to by the transferor.
Regardless of whether the offer establishes different prices for
different
interests to be transferred, we may establish a fair value for
the
interest we select to acquire, based either upon the prices paid
for
similar interests in arm’s length transactions during the previous two
(2)-year period before the date of the proposed transfer, or on
other
reasonable criteria.
|
11
(vi)
|
If
non-monetary consideration is offered, we may pay the cash equivalent
of
the non-monetary consideration offered. If such non-monetary consideration
includes the employment of the transferor, we may require the transferor
to perform the proposed services on substantially the same terms
as those
offered by the proposed transferee. At our option, we may agree
not to pay
the agreed compensation for the services to be performed by the
transferor, and decline the services to be performed under the
terms of
the offer. If we elect this option, we may set off against any
amount due
for services to be rendered by the transferor, any income to be
received
by the transferor for services performed by others during the period
when
the transferor had agreed to perform services for us. Neither we
nor our
designee shall be liable for paying any brokerage commission on
the value
of the interest transferred.
|
(vii)
|
If
we exercise our right of first refusal, the transferor shall transfer
the
interest to us or to our assignee pursuant to an agreement to purchase
which contains the material terms to which the transferor and the
proposed
transferee had agreed. However, if the offer or proposed purchase
contract
has omitted any terms customarily addressed in a transfer of an
interest
of the type which is the subject of the transaction, we may supply
those
terms in the purchase agreement and related
documents.
|
(viii)
|
If
we or our assignee fail to exercise the option to purchase the
interest
sought to be transferred, the we shall, within thirty (30) days
after
receipt of the notice of the proposed transfer, notify the proposed
transferor in writing of our approval or disapproval of the prospective
transferee.
|
d. A
transfer to a “Controlled Entity” will not trigger the Right of First Refusal. A
“Controlled Entity” is an entity in which you are the beneficial owner(s) of one
hundred percent (100%) of each class of voting ownership interest. At the time
of the desired transfer of interest to a Controlled Entity, you must notify
us
in writing of the name of the Controlled Entity. We only will approve a transfer
to a Controlled Entity after all its beneficial owners have signed a personal
guaranty of the Controlled Entity’s obligations to us in a form which we
prescribe. We do not charge a transfer fee for this change.
e. A
transfer of interest among the owners of a franchisee entity will not trigger
the Right of First Refusal, provided that only the percentage of ownership,
rather than the identity of the owners, is changing. At the time of the desired
transfer of interest within an entity, you must notify us in writing of the
name
and address of each officer, director shareholder, member, partner or similar
person and their respective ownership interest before and after the transfer.
We
do not charge a transfer fee for this change.
f. If
we do
not exercise our Rights of First Refusal, you may transfer the Franchise or
ownership interest therein according to the terms set forth in the Notice
described in Section 13.c.(i), provided that you satisfy the conditions in
sub-parts (f) through (j) below and complete the sale within ninety (90) days
from the day on which we received the Notice. If you do not conclude the
proposed sale transaction within the ninety (90)-day period, the Right of First
Refusal granted to us hereunder will continue in full force and
effect.
g. The
proposed transferee(s) must complete our then current 0-000-000-XXXX/Geeks
On
Call franchise application and pass our application screening using our then
current qualifications.
h. The
proposed transferee(s) must sign the then current 0-000-000-XXXX/Geeks On Call
amendment forms and/or franchise agreement, as required by us, and must
personally assume and be bound by all of the terms, covenants and conditions
therein.
12
i. The
proposed transferee(s) must attend and successfully complete our Operations
Training.
j. You
must
sign our then current transfer and release forms and pay us a transfer fee
of
Five Thousand Dollars ($5,000).
14. |
NON-WAIVER
OF BREACH
|
The
failure of either party hereto to enforce any one or more of the terms or
conditions of this Agreement will not be deemed a waiver of such terms or
conditions or of either party's rights thereafter to enforce each and every
term
and condition of this Agreement.
15. |
GOVERNING
LAW
|
a. Virginia
Law.
This
Agreement takes effect upon our acceptance and execution of it. It shall be
interpreted and construed exclusively under the laws of the Commonwealth of
Virginia, which laws shall prevail in the event of any conflict of law (without
regard to, and without giving effect to, the application of Virginia choice
of
law rules); provided, however, that if the covenants in Section 10 of this
Agreement would not be enforceable under the laws of Virginia, and your
Franchised Business is located outside of Virginia, then such covenants shall
be
interpreted and construed under the laws of the state in which the Franchised
Business is located. Nothing in this Section 15 is intended by the parties
to
subject this Agreement to any franchise or similar law, rule, or regulation
of
the Commonwealth of Virginia to which this Agreement would not otherwise be
subject.
b. Jurisdiction
and Venue.
In any
suit brought by us, which in any way relates to or arises out of this Agreement,
or any of the dealings of the parties hereto, you consent to venue and personal
jurisdiction in the state and federal court of the city or county of our World
Headquarters, presently state courts and/or the United States District Court
located in Norfolk, Virginia. In any suit brought against us, including our
present and former employees and agents, which in any way relates to or arises
out of this Agreement, or any of the dealings of the parties hereto, venue
will
be proper only in the federal court located nearest our World Headquarters
(presently the United States District in Norfolk, Virginia), or if neither
federal subject matter or diversity jurisdiction exists, in the city or county
state court located where our World Headquarters is (presently the City of
Norfolk, Virginia).
c. Jury
Waiver. In
any
trial between any of the parties hereto, including present and former employees
and agents of ours, you and we agree to waive our rights to a jury trial and
instead have such action tried by a judge.
d. Class
Action Waiver.
You
agree that any claim you may have against us, including our past and present
employees and agents, must be brought individually and you will not join such
claim with claims of any other person or entity or bring, join or participate
in
a class action against us.
e. Compensatory
Damages; Attorneys’ Fees. In
any
lawsuit, dispute or claim between or against any of the parties hereto,
including present and former agents and employees of ours, you and we agree
to
waive our rights, if any, to seek or recover punitive damages.
16. |
MODIFICATION
|
No
modifications to this Agreement will have any effect unless such modification
is
in writing and signed by you and by our authorized officer. Notwithstanding
the
foregoing, we may modify the provisions of the Operations Manual, without your
consent, at anytime during the term of this Agreement in order to adjust for
competitive changes, technological advancements, legal requirements and attempts
to improve in the market place.
13
17. |
RELEASE
OF PRIOR CLAIMS
|
By
executing this Agreement, you and everyone owning an interest in the franchisee
entity, on behalf of yourselves and your heirs, legal representatives,
successors and assigns, and each assignee of this Agreement, hereby forever
release and discharge the Franchisor, its past and present employees, agents,
officers and directors, including Franchisor’s parent, subsidiary and affiliated
corporations, their respective past and present employees, agents, officers
and
directors, from any and all claims relating to or arising out of any franchise
agreement between the parties executed prior to the date of this Agreement,
and
all other claims relating to any dealings between any of the parties. However,
this release does not apply to any duty we may have to offer to renew your
Franchise as provided in any prior franchise agreements between us.
18. |
INDEMNIFICATION
|
You
agree
to indemnify us against any and all claims or causes of action, including
attorneys’ fees, arising out of or related to your operation of the Franchise
Business.
19. |
NOTICES
|
Any
notice or request hereunder must be given by mail or courier, postage fully
prepaid, or delivered personally or by facsimile, to our President, at our
World
Headquarters, presently 000 Xxxxxxxxxx Xxxx, Xxxxxxxxxx Xxxxxxxxx Xxxxxx,
Xxxxxxxx 00, Xxxxx 000, Xxxxxxx, XX 00000. Telephone: (000) 000-0000.
Telecopier: (000) 000-0000. Any such notice may also be given to you in the
same
manner at the address indicated below the Franchisee’s signature on this
Agreement.
20. |
FULL
UNDERSTANDING
|
This
Agreement is the entire agreement between you and us. This Agreement supersedes
all other prior oral and written agreements and understandings between you
and
us with respect to the subject matter herein.
21. |
ACKNOWLEDGMENTS
|
You
acknowledge that you have read our franchise offering circular and this
Agreement and that you have been given the opportunity to clarify any provision
that you do not understand. You further acknowledge that you have independently
investigated the business offered hereunder and base your decision to purchase
solely on such investigation. You acknowledge that our Franchise Sales
Representatives are not authorized to make and have not made any representations
as to your likely revenues, expenses, profits or success.
22. |
GUARANTY
|
You
and
all your officers, directors, partners, and members of the franchisee entity,
agree to perform all the obligations in and relating to this Agreement,
including, but not limited to, the obligation to make payments specified herein,
pay any other debts due us, and pay for products later ordered from us.
Likewise, for and in consideration of this Agreement, the signatures of the
individual(s) below also constitute their personal joint and several guaranty
to
perform all the obligations in and relating to this Agreement, including, but
not limited to, the obligation to make payments specified herein, pay any other
debts due us, and pay for products later ordered from us. The Guarantors waive
presentment, demand or notice of non-performance and the right to require us
to
proceed against the other Guarantors.
14
Name
of Franchisee:
Type
of Entity (Individual, Partnership, Corporation,
LLC):_______________________________
Effective
Date:_____________ Entity
Number:________________
FRANCHISEE:
By:
|
By:
|
|||||||||||||
(Signature)
|
(Signature)
|
|||||||||||||
(Printed
Name)
|
(Printed
Name)
|
|||||||||||||
Title:
|
Title:
|
|||||||||||||
Address:
|
Address:
|
|||||||||||||
(Telephone
Number)
|
(Telephone
Number)
|
|||||||||||||
Percentage
of Ownership (if entity):_____%
|
Percentage
of Ownership (if entity):_____%
|
|||||||||||||
By:
|
By:
|
|||||||||||||
(Signature)
|
(Signature)
|
|||||||||||||
(Printed
Name)
|
(Printed
Name)
|
|||||||||||||
Title:
|
Title:
|
|||||||||||||
Address:
|
Address:
|
|||||||||||||
(Telephone
Number)
|
(Telephone
Number)
|
|||||||||||||
Percentage
of Ownership (if entity):_____%
|
Percentage
of Ownership (if entity):_____%
|
15
GUARANTORS:
By:
|
By:
|
|||||||||||||||
(Signature)
|
(Signature)
|
|||||||||||||||
(Printed
Name)
|
(Printed
Name)
|
|||||||||||||||
Title:
|
Title:
|
|||||||||||||||
Address:
|
Address:
|
|||||||||||||||
(Telephone
Number)
|
(Telephone
Number)
|
|||||||||||||||
Percentage
of Ownership (if entity):_____%
|
Percentage
of Ownership (if entity):_____%
|
|||||||||||||||
By:
|
By:
|
|||||||||||||||
(Signature)
|
(Signature)
|
|||||||||||||||
(Printed
Name)
|
(Printed
Name)
|
|||||||||||||||
Title:
|
Title:
|
|||||||||||||||
Address:
|
Address:
|
|||||||||||||||
(Telephone
Number)
|
(Telephone
Number)
|
|||||||||||||||
Percentage
of Ownership (if entity):_____%
|
Percentage
of Ownership (if entity):_____%
|
|||||||||||||||
GEEKS
ON CALL AMERICA, INC.
|
||||||||||||||||
By:
|
Date:
|
16
SCHEDULE
"A" TO THE FRANCHISE AGREEMENT
Territory
The
Franchise Territory is as follows:
SCHEDULE
“B” TO THE FRANCHISE AGREEMENT
Special
Stipulations
To
the
extent of any conflict between the following and the provisions of the Franchise
Agreement dated__________________,
the
following special stipulation(s) will control:
NONE
FRANCHISEE
|
By:
|
By:
|
|||
(Signature)
|
(Signature)
|
|||
(Printed
Name)
|
(Printed
Name)
|
|||
(Title)
|
(Title)
|
By:
|
By:
|
|||
(Signature)
|
(Signature)
|
|||
(Printed
Name)
|
(Printed
Name)
|
|||
(Title)
|
(Title)
|
GEEKS
ON CALL AMERICA, INC.
By:
|
AMENDMENT
TO GEEKS ON CALL AMERICA, INC.
FRANCHISE
AGREEMENT
FOR
THE STATE OF CALIFORNIA
The
Geeks
On Call America, Inc. Franchise Agreement between
__________________________________ (“Franchisee” or “You”) and Geeks On Call
America, Inc. (“Franchisor”) dated _______________________ (the “Agreement”)
shall be amended by the addition of the following language, which shall be
considered an integral part of the Agreement (the “Amendment”):
CALIFORNIA
LAW MODIFICATIONS
1. The
California Department of Corporations requires that certain provisions contained
in franchise documents be amended to be consistent with California law,
including the California Franchise Investment Law, CAL. CORPORATIONS CODE
Section 31000 et seq.,
and
the California Franchise Relations Act, CAL. BUS. & PROF. CODE Section
20000 et seq.
To the
extent that the Agreement contains provisions that are inconsistent with the
following, such provisions are hereby amended:
a.
|
California
Business and Professions Code Sections 20000 through 20043 provide
rights
to You concerning nonrenewal and termination of the Agreement. The
Federal
Bankruptcy Code also provides rights to You concerning termination
of the
Agreement upon certain bankruptcy-related events. To the extent the
Agreement contains a provision that is inconsistent with these laws,
these
laws will control.
|
b.
|
If
the Franchisee is required in the Agreement to execute a release
of
claims, such release shall exclude claims arising under the California
Franchise Investment Law and the California Franchise Relations
Act.
|
c.
|
If
the Agreement requires payment of liquidated damages that is inconsistent
with California Civil Code Section 1671, the liquidated damage clause
may
be unenforceable.
|
d.
|
If
the Agreement contains a covenant not to compete which extends beyond
the
expiration or termination of the Agreement, the covenant may be
unenforceable under California law.
|
e.
|
If
the Agreement requires litigation, arbitration or mediation to be
conducted in a forum other than the State of California, the requirement
may be unenforceable under California
law.
|
f.
|
If
the Agreement requires that it be governed by a state’s law, other than
the State of California, such requirement may be
unenforceable.
|
2. Each
provision of this Amendment shall be effective only to the extent that the
jurisdictional requirements of the California law applicable to the provision
are met independent of this Amendment. This Amendment shall have no force or
effect if such jurisdictional requirements are not met.
3. As
to any
state law described in this Amendment that declares void or unenforceable any
provision contained in the Agreement, the Franchisor reserves the right to
challenge the enforceability of the state law by, among other things, bringing
an appropriate legal action or by raising the claim in a legal action or
arbitration that you have initiated.
IN
WITNESS WHEREOF, the parties have fully executed, sealed and delivered this
Amendment to the Franchise Agreement on the day and year first above written
in
the Franchise Agreement.
FRANCHISOR:
|
|||||
Geeks
On Call America, Inc.
|
|||||
A
Virginia corporation
|
|||||
By:
|
|||||
Name:
|
|||||
Title:
|
|||||
FRANCHISEE:
|
|||||
ATTEST:
|
|||||
By:
|
|||||
Name:
|
|||||
Witness
|
Title:
|
AMENDMENT
TO GEEKS ON CALL AMERICA, INC.
FRANCHISE
AGREEMENT
FOR
THE STATE OF ILLINOIS
The
Geeks
On Call America, Inc. Franchise Agreement between
________________________________ (“Franchisee” or “You”) and Geeks On Call
America, Inc. (“Franchisor”) dated _______________________
(the
“Agreement”) shall be amended by the addition of the following language, which
shall be considered an integral part of the Agreement (the
“Amendment”):
ILLINOIS
LAW MODIFICATIONS
1. The
Illinois Attorney General's Office requires that certain provisions contained
in
franchise documents be amended to be consistent with Illinois law, including
the
Franchise Disclosure Act of 1987, 815 ILCS 705/1-44 (1994). To the extent that
this Agreement contains provisions that are inconsistent with the following,
such provisions are hereby amended:
a.
|
Illinois
Franchise Disclosure Act paragraphs 705/19 and 705/20 provide rights
to
You concerning nonrenewal and termination of this Agreement. If this
Agreement contains a provision that is inconsistent with the Act,
the Act
will control.
|
b.
|
Any
release of claims or acknowledgments of fact contained in the Agreement
that would negate or remove from judicial review any statement,
misrepresentation or action that would violate the Act, or a rule
or order
under the Act shall be void and are hereby deleted with respect to
claims
under the Act.
|
c.
|
If
this Agreement requires litigation to be conducted in a forum other
than
the State of Illinois, the requirement is
void.
|
d.
|
If
this Agreement requires that it be governed by a state's law, other
than
the State of Illinois, Illinois law will
control.
|
e.
|
Section
15(c) of the Agreement is amended to include the following: Any condition,
stipulation or provision purporting to bind any person acquiring
any
franchise to waive compliance with any provision of the Illinois
Franchise
Disclosure Act or any other law of the State of Illinois is
void.
|
f.
|
Section
20 of the Agreement is amended to state that the representations
and
understandings made in the Offering Circular are not excluded from
that on
which You may rely.
|
2. Each
provision of this Amendment shall be effective only to the extent that the
jurisdictional requirements of the Illinois Franchise Disclosure Act, with
respect to each such provision, are met independent of this Amendment. This
Amendment shall have no force or effect if such jurisdictional requirements
are
not met.
3. As
to any
state law described in this Amendment that declares void or unenforceable any
provision contained in the Agreement, the Franchisor reserves the right to
challenge the enforceability of the state law by, among other things, bringing
an appropriate legal action or by raising the claim in a legal action or
arbitration that you have initiated.
IN
WITNESS WHEREOF, the parties hereto have fully executed, sealed and delivered
this Amendment to the Franchise Agreement on the day and year first above
written in the Franchise Agreement.
FRANCHISOR:
|
|||||
Geeks
On Call America, Inc.
|
|||||
A
Virginia corporation
|
|||||
By:
|
|||||
Name:
|
|||||
Title:
|
|||||
FRANCHISEE:
|
|||||
ATTEST:
|
|||||
By:
|
|||||
Name:
|
|||||
Witness
|
Title:
|
AMENDMENT
TO GEEKS ON CALL AMERICA, INC.
OFFERING
CIRCULAR AND FRANCHISE AGREEMENT
FOR
THE STATE OF MARYLAND
The
Geeks
On Call America, Inc. Franchise Agreement between
________________________________ ("Franchisee") and Geeks On Call America,
Inc.
("Franchisor") dated _____________________, ______ (the "Agreement") shall
be
amended by the addition of the following language, which shall be considered
an
integral part of the Agreement (the "Amendment"):
MARYLAND
LAW MODIFICATIONS
1. The
Maryland Securities Division requires that certain provisions contained in
franchise documents be amended to be consistent with Maryland law, including
the
Maryland Franchise Registration and Disclosure Law, Md. Code Xxx., Bus. Reg.
''
14-201 - 14-233 (1994). To the extent that this Agreement contains provisions
that are inconsistent with the following, such provisions are hereby
amended:
a.
|
Item
17 of the Offering Circular, in the Summary column of “Requirements for
Franchisee to renew or extend” and “Conditions for our approval of
transfer”, is modified to state that the general release required as a
condition of renewal, sale, and/or assignment/transfer shall not
apply to
any liability under the Maryland Franchise Registration and Disclosure
Law.
|
b.
|
Item
17 of the Offering Circular, in the Summary column of “”Cause” defined -
defaults which cannot be cured”, is modified to state that provisions
allowing termination on bankruptcy may not be enforceable under federal
bankruptcy law (11 U.S.C. § 101 et seq.).
|
c.
|
Item
17 of the Offering Circular, in the Summary column of “Choice of Forum”,
is modified to include the words “, except any claims arising under the
Maryland Franchise Registration and Disclosure
Law.”
|
d.
|
The
Franchisee is required in this Agreement to execute a release of
claims or
to acknowledge facts that would negate or remove from judicial review
any
statement, misrepresentation or action that would violate the Act,
or a
rule or order under the Act, as a condition of renewal, sale and/or
assignment/transfer. Such release shall exclude claims arising under
the
Maryland Franchise Registration and Disclosure Law, and such
acknowledgments shall be void with respect to claims under the
Law.
|
e.
|
This
Agreement requires you to assent to a release of claims, estoppel
or
waiver of liability, to acknowledge facts that would negate or remove
from
judicial review any statement, misrepresentation or action that would
violate the Act or a rule or order under the Act in order to purchase
the
franchise. Such release, estoppel or waiver shall exclude claims
arising
under the Maryland Franchise Registration and Disclosure Law, and
such
acknowledgments shall be void with respect to claims under the
Law.
|
f.
|
This
Agreement requires litigation to be conducted in a forum other than
the
State of Maryland. The requirement shall not be interpreted to limit
any
rights Franchisee may have under Sec. 14-216 (c)(25) of the Maryland
Franchise Registration and Disclosure Law to bring suit in the state
of
Maryland.
|
2. Sections
4(a) through 4(c) are deleted in their entirety and replaced with the following
provisions:
a.
Initial Franchise Fee. You
must
pay us an initial franchise fee in the amount of ______________ Dollars
($__________). The franchise fee is payable when we complete our material
pre-opening obligations to you and you are ready to commence operations of
your
first Franchised Business.
b. Initial
Advertising Fee.
You must
pay us an initial advertising fee in the amount of Fifteen Thousand Dollars
($15,000) when we complete our material pre-opening obligations to you and
you
are ready to commence operations of your first Franchised Business.
c. [Reserved].
3. Each
provision of this Amendment shall be effective only to the extent that the
jurisdictional requirements of the Maryland Franchise Registration and
Disclosure Law, with respect to each such provision, are met independent of
this
Amendment. This Amendment shall have no force or effect if such jurisdictional
requirements are not met.
4. As
to any
state law described in this Amendment that declares void or unenforceable any
provision contained in the Agreement, the Franchisor reserves the right to
challenge the enforceability of the state law by, among other things, bringing
an appropriate legal action or by raising the claim in a legal action or
arbitration that you have initiated.
IN
WITNESS WHEREOF, the parties hereto have fully executed, sealed and delivered
this Amendment to the Franchise Agreement on the day and year first above
written in the Franchise Agreement.
FRANCHISOR:
|
|||||
Geeks
On Call America, Inc.
|
|||||
a Virginia
corporation
|
|||||
By:
|
|||||
Name:
|
|||||
Title:
|
|||||
FRANCHISEE:
|
|||||
ATTEST:
|
|||||
By:
|
|||||
Name:
|
|||||
Witness
|
Title:
|
AMENDMENT
TO GEEKS ON CALL AMERICA, INC.
FRANCHISE
AGREEMENT
FOR
THE STATE OF MINNESOTA
The
Geeks
On Call America, Inc. Franchise Agreement between
________________________________ (“Franchisee”) and Geeks On Call America, Inc.
(“Franchisor”) dated _____________________, ______ (the “Agreement”) shall be
amended by the addition of the following language, which shall be considered
an
integral part of the Agreement (the “Amendment”):
MINNESOTA
LAW MODIFICATIONS
1. Marks.
Section
5 of the Agreement is amended to include a new paragraph (l)
at the
end of the section as follows:
l.
Limited Trademark Indemnity. We
will
indemnify you for damages for which you are held liable in any proceeding
arising out of the use of the “1-800-905-GEEK” and “Geeks On Call” marks,
provided that you have has used the marks properly and has notified us of any
claim against you within ten (10) days of your knowledge of such claim. We
shall
have sole control of any litigation involving the marks. Our indemnification
obligation shall not apply to any franchisee residing outside the state of
Minnesota who purchases a franchise to be located outside of
Minnesota.
2. Section
15(a) of the Agreement is amended with the addition of the following sentence
at
the end of the paragraph:
Notwithstanding
the foregoing, nothing in this Agreement shall abrogate or reduce
any of
your rights as provided for in Minnesota Statutes, Chapter 80C or
your
rights to any procedure, forum or remedies provided for by the laws
of the
jurisdiction.
|
3. Section
15(b) of the Agreement is deleted in its entirety and replaced with the
following:
b.
|
Jurisdiction
and Venue.
In
any suit brought by us, which in any way relates to or arises out
of this
Agreement, or any of the dealings of the parties hereto, you consent
to
venue and personal jurisdiction in the state courts and/or the United
States District Court located in St. Xxxx, Minnesota. In any suit
brought
against us, including our present and former employees and agents,
which
in any way relates to or arises out of this Agreement, or any of
the
dealings of the parties hereto, venue will be proper only in the
above-named federal court, or if neither federal subject matter or
diversity jurisdiction exists, in the city or county state court
located
in St. Xxxx, Minnesota.
|
4. Section
15(c) of
the
Agreement is
deleted in its entirety.
5. The
general release requirements under Sections 2 and 17 of the Agreement are not
applicable to Minnesota franchisees.
6. Each
provision of this Amendment shall be effective only to the extent that the
jurisdictional requirements of the Minnesota Statutes Chapter 80C, with respect
to each such provision, are met independent of this Amendment. This Amendment
shall have no force or effect if such jurisdictional requirements are not
met.
7. As
to any
state law described in this Amendment that declares void or unenforceable any
provision contained in the Agreement, the Franchisor reserves the right to
challenge the enforceability of the state law by, among other things, bringing
an appropriate legal action or by raising the claim in a legal action or
arbitration that you have initiated.
IN
WITNESS WHEREOF, the parties hereto have fully executed, sealed and delivered
this Amendment to the Agreement on the day and year first above written in
the
Franchise Agreement.
FRANCHISOR:
|
|||||
Geeks
On Call America, Inc.
|
|||||
a Virginia
corporation
|
|||||
By:
|
|||||
Name:
|
|||||
Title:
|
|||||
FRANCHISEE:
|
|||||
ATTEST:
|
|||||
By:
|
|||||
Name:
|
|||||
Witness
|
Title:
|
AMENDMENT
TO GEEKS ON CALL AMERICA, INC.
FRANCHISE
AGREEMENT
FOR
THE STATE OF NEW YORK
The
Geeks
On Call America, Inc. Franchise Agreement between
________________________________ (“Franchisee”) and Geeks On Call America, Inc.
(“Franchisor”) dated _____________________, ______ (the “Agreement”) shall be
amended by the addition of the following language, which shall be considered
an
integral part of the Agreement (the “Amendment”):
NEW
YORK LAW MODIFICATIONS
1. The
New
York Department of Law requires that certain provisions contained in franchise
documents be amended to be consistent with New York law, including the General
Business Law, Article 33, Sections 680 through 695 (1989). To the extent that
the Agreement contains provisions that are inconsistent with the following,
such
provisions are hereby amended:
a.
|
If
the Agreement requires Franchisee to execute a release of claims
or to
acknowledge facts that would negate or remove from judicial review
any
statement, misrepresentation or action that would violate the General
Business Law, or any regulation, rule or order under the Law, such
release
shall exclude claims arising under the New York General Business
Law,
Article 33, Section 680 through 695 and the regulations promulgated
thereunder, and such acknowledgments shall be void. It is the intent
of
this provision that non-waiver provisions of Sections 687.4 and 687.5
of
the General Business Law be
satisfied.
|
b.
|
If
the Agreement requires that it be governed by a state's law, other
than
the State of New York, the choice of law provision shall not be considered
to waive any rights conferred upon the Franchisee under the New York
General Business Law, Article 33, Sections 680 through
695.
|
2. Each
provision of this Amendment shall be effective only to the extent that the
jurisdictional requirements of the New York General Business Law, with respect
to each such provision, are met independent of this Amendment. This Amendment
shall have no force or effect if such jurisdictional requirements are not
met.
3. As
to any
state law described in this Amendment that declares void or unenforceable any
provision contained in the Agreement, the Franchisor reserves the right to
challenge the enforceability of the state law by, among other things, bringing
an appropriate legal action or by raising the claim in a legal action or
arbitration that you have initiated.
IN
WITNESS WHEREOF, the parties hereto have fully executed, sealed and delivered
this Amendment to the Franchise Agreement on the day and year first above
written in the Franchise Agreement.
FRANCHISOR:
|
|||||
Geeks
On Call America, Inc.
|
|||||
a Virginia
corporation
|
|||||
By:
|
|||||
Name:
|
|||||
Title:
|
|||||
FRANCHISEE:
|
|||||
ATTEST:
|
|||||
By:
|
|||||
Name:
|
|||||
Witness
|
Title:
|
AMENDMENT
TO GEEKS ON CALL AMERICA, INC.
FRANCHISE
AGREEMENT
FOR
THE STATE OF NORTH DAKOTA
The
Geeks
On Call America, Inc. Franchise Agreement between
________________________________ (“Franchisee”) and Geeks On Call America, Inc.
(“Franchisor”) dated _____________________, ______ (the “Agreement”) shall be
amended by the addition of the following language, which shall be considered
an
integral part of the Agreement (the “Amendment”):
NORTH
DAKOTA LAW MODIFICATIONS
1. Any
provision in the Agreement that requires your consent to termination or
liquidated damages is deleted.
2. Section
15(a) of the Agreement is amended with the addition of the following sentence
at
the end of the paragraph:
Notwithstanding
the foregoing, nothing in this Agreement shall abrogate or reduce
any of
your rights as provided for in Minnesota Statutes, Chapter 80C or
your
rights to any procedure, forum or remedies provided for by the laws
of the
jurisdiction.
|
3. Section
15(b) of the Agreement is deleted in its entirety and replaced with the
following:
b.
|
Jurisdiction
and Venue.
In
any suit brought by us, which in any way relates to or arises out
of this
Agreement, or any of the dealings of the parties hereto, you consent
to
venue and personal jurisdiction in the state courts and/or the United
States District Court located in Bismarck, North Dakota. In any suit
brought against us, including our present and former employees and
agents,
which in any way relates to or arises out of this Agreement, or any
of the
dealings of the parties hereto, venue will be proper only in the
above-named federal court, or if neither federal subject matter or
diversity jurisdiction exists, in the city or county state court
located
in Bismarck, North Dakota.
|
4. Sections
15(c) and 15(e)
of the
Agreement
are
deleted in their entirety.
5. The
general release requirements under Sections 2 and 17 of the Agreement are not
applicable to North Dakota franchisees.
6. To
the
extent that any provision of Section 9 or Section 10 of the Agreement is
contrary to Section 9-08-06 of the North Dakota Century Code, such provision
may
be limited or invalid under that statute.
7. Each
provision of this Amendment shall be effective only to the extent that the
jurisdictional requirements of the North Dakota Century Code § 51-19-01 et
seq. with respect to each such provision, are met independent of this Amendment.
This Amendment shall have no force or effect if such jurisdictional requirements
are not met.
8. As
to any
state law described in this Amendment that declares void or unenforceable any
provision contained in the Agreement, the Franchisor reserves the right to
challenge the enforceability of the state law by, among other things, bringing
an appropriate legal action or by raising the claim in a legal action or
arbitration that you have initiated.
IN
WITNESS WHEREOF, the parties hereto have fully executed, sealed and delivered
this Amendment to the Franchise Agreement on the day and year first above
written in the Franchise Agreement.
FRANCHISOR:
|
|||||
Geeks
On Call America, Inc.
|
|||||
a Virginia
corporation
|
|||||
By:
|
|||||
Name:
|
|||||
Title:
|
|||||
FRANCHISEE:
|
|||||
ATTEST:
|
|||||
By:
|
|||||
Name:
|
|||||
Witness
|
Title:
|
AMENDMENT
TO GEEKS ON CALL AMERICA, INC.
FRANCHISE
AGREEMENT
FOR
THE STATE OF WASHINGTON
The
Geeks
On Call America, Inc. Franchise Agreement between
________________________________ (“Franchisee”) and Geeks On Call America, Inc.
(“Franchisor”) dated _____________________, ______ (the “Agreement”) shall be
amended by the addition of the following language, which shall be considered
an
integral part of the Agreement (the “Amendment”):
WASHINGTON
LAW MODIFICATIONS
1. The
Director of the Washington Department of Financial Institutions requires that
certain provisions contained in franchise documents be amended to be consistent
with Washington law, including the Washington Franchise Investment Protection
Act, WA Rev. Code §§ 19.100.010 to 19.100.940 (1991). To the extent that the
Agreement contains provisions that are inconsistent with the following, such
provisions are hereby amended:
a.
|
Washington
Franchise Investment Protection Act provides rights to Franchisee
concerning nonrenewal and termination of the Agreement. If the Agreement
contains a provision that is inconsistent with the Act, the Act will
control.
|
b.
|
If
the Franchisee is required in the Agreement to execute a release
of
claims, such release shall exclude claims arising under the Washington
Franchise Investment Protection Act; except when the release is executed
under a negotiated settlement after the Agreement is in effect and
where
the parties are represented by independent counsel. If there are
provisions in the Agreement that unreasonably restrict or limit the
statute of limitations period for claims brought under the Act, or
other
rights or remedies under the Act, those provisions may be
unenforceable.
|
c.
|
If
the Agreement requires litigation, arbitration, or mediation to be
conducted in a forum other than the State of Washington, the requirement
may be unenforceable under Washington law. Arbitration involving
a
franchise purchased in the State of Washington must either be held
in the
State of Washington or in a place mutually agreed upon at the time
of the
arbitration, or as determined by the arbitrator.
|
d.
|
If
the Agreement requires that it be governed by a state's law, other
than
the State of Washington, and there is a conflict between the law
and the
Washington Franchise Investment Protection Act, the Washington Franchise
Investment Protection Act will
control.
|
2. Each
provision of this Amendment shall be effective only to the extent that the
jurisdictional requirements of the Washington law applicable to the provision
are met independent of this Amendment. This Amendment shall have no force or
effect if such jurisdictional requirements are not met.
3. As
to any
state law described in this Amendment that declares void or unenforceable any
provision contained in the Agreement, the Franchisor reserves the right to
challenge the enforceability of the state law by, among other things, bringing
an appropriate legal action or by raising the claim in a legal action or
arbitration that you have initiated.
IN
WITNESS WHEREOF, the parties hereto have fully executed, sealed and delivered
this Amendment to the Franchise Agreement on the day and year first above
written in the Franchise Agreement.
FRANCHISOR:
|
|||||
Geeks
On Call America, Inc.
|
|||||
a Virginia
corporation
|
|||||
By:
|
|||||
Name:
|
|||||
Title:
|
|||||
FRANCHISEE:
|
|||||
ATTEST:
|
|||||
By:
|
|||||
Name:
|
|||||
Witness
|
Title:
|
Geeks
On
Call
000
Xxxxxxxxxx Xxxx
Xxxxx
000
Xxxxxxx
XX 00000
Re:
Geeks
On
Call Franchise Agreement
Gentlemen:
You
may
accept this letter as specific confirmation that, except for the information
contained in Item 19 of the Geeks On Call America, Inc. Offering Circular,
the
undersigned has not received, directly or indirectly from Geeks On Call, its
officers, directors or other employees, any written or oral statement, whether
express or implied, of the actual, average, forecasted, projected, or potential
sales, profits, or earnings which may be realized from the purchase of a Geeks
On Call franchise or any specific franchised location.
Dated:
|
|||
Individually
and/or as
|
|||
Officer
or Partner of:
|
|||
RECEIPT
OF
COMPLETED
FRANCHISE AGREEMENT
Attn:
Franchise Sales Administrator
Geeks
On
Call America, Inc.
000
Xxxxxxxxxx Xxxx
Xxxxx
000
Xxxxxxx,
XX 00000
Re: Receipt
of Completed Franchise Agreement
I
acknowledge that I received the Geeks On Call franchise agreement on the date
indicated below. The franchise agreement that I received has been fully
completed, including the franchise territory on Schedule A, except that the
agreement has not been executed by either myself or Geeks On Call. I understand
that I must hold this agreement for five (5) business days before signing the
agreement. Geeks On Call will not execute this agreement unless I have had
the
agreement in my possession for at least five (5) business days.
Upon
receiving the franchise agreement, please sign this acknowledgment and return
it
to Geeks On Call at the address above.
Date
You Received This
|
Your
Signature
|
|
Franchise
Agreement
|
||
Your
Printed Name
|