Franchise Agreement

A Franchise Agreement is a legal document made to lend a business, its activities and Intellectual Property Rights to another business entity. The franchise agreement is made between the franchisor i.e. the owner of the business and the franchisee i.e. the entity to whom the business is franchised.

A franchise agreement lays down the terms and conditions relating to the use of franchisor’s IPR, use of brand name, fees, penalties, royalty, standards of operation and the quality of product to be maintained and other legal provisions.

Draft Your Franchise Agreement
At INR 12999

What You'll Get In The Package

Inclusion

  • Telephonic consultation with the lawyer for 30 minutes.
  • Preparation of draft agreement.
  • Two iterations to the agreement.

Exclusion

  • Iterations to the agreement at a later stage.
  • Addendums to the agreement.

Documents required to draft a Franchise Agreement

  • Details relating to the franchise business.
  • Details pertaining to the clauses to be added in the agreement.

Procedureof drafting a Franchise Agreement

Legistify's legal experts understand the legal requirements of the business and our lawyer prepares a draft of Franchise Agreement on the basis of information provided. Once the first draft agreement is prepared, the lawyer sends it back for approval. After the approval, the document is ready to be signed by the parties.
 

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FAQs

What is a Franchise?
A franchise is an arrangement between a business with another entity whereby, the owner of such business licenses the Intellectual Property and brand’s goodwill to the latter instead of directly selling the product.
What law governs drafting of Franchise Agreement?
There is no specific legislation in India that governs drafting of franchise agreement. However, the provisions of the Indian Contract Act, 1872, Specific Relief Act, 1963, taxation laws, property laws, labour laws are applicable on franchise agreements.
Can a Franchise Agreement be made for a restaurant in India?
Yes, a franchise agreement can be drafted for restaurant chains in India, including franchisees of businesses in other countries.
Can a Franchise Agreement be made for a retail store?
Yes, a franchise agreement can be drafted for different retail stores in India, including franchisees of businesses in other countries.
How to terminate a Franchise Agreement?
A franchise agreement is terminated when any of the parties fail to adhere to the provisions of the agreement. A clauses relating to the method of terminating the agreement must be added to the agreement.
Do I need a lawyer to draft a Franchise Agreement?
There are a number of laws and rules applicable to franchise arrangements in India. It is advised to get the franchise agreement template drafted by an experienced lawyer who can understand the needs of the business and draft an agreement covering all kinds of legal aspects.
What are the important clauses of Franchise Agreement?
The clauses of a franchise agreement differ from business to business as per their requirements. However, general clauses of a franchise agreement include term and renewal, fees and royalty clause, proprietary marks, confidentiality, training, duty of franchisor, duty of franchisee, Termination, products and operations standard and requirements, advertising, dispute resolution and post-term obligations.
What are some examples of Franchise businesses in India?
The most common examples of franchise businesses in India are McDonald’s, KFC, Subway, Fortis, Haldiram, Burger King, Domino’s, etc.