Franchise Agreement

Clearly define brand usage, operational standards, royalty structure, and franchisee obligations to build a strong, legally compliant franchise network.

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Franchise Agreement

A Franchise Agreement is a legal contract between a franchisor (brand owner) and a franchisee (independent operator) that grants the right to use the brand’s name, system, and intellectual property. It outlines the terms of the franchise relationship, including territory, fees, training, operations, marketing, and termination. This agreement protects the brand and ensures consistency across all franchise locations.

Contents of a Franchise Agreement

A well-structured Franchise Agreement typically includes:

How it Works

Laws Governing Franchise Agreements in India

Franchise Agreements in India are regulated through various legal provisions, including:

  • Indian Contract Act, 1872
  • Trademarks Act, 1999 (for brand/IP protection)
  • Consumer Protection Act, 2019
  • Competition Act, 2002
  • Income Tax Act, 1961 (for royalty and fee taxation)
  • Foreign Exchange Management Act (FEMA), if involving international parties

Frequently Asked Questions (FAQ)

Yes, even small franchise operations need legal clarity to avoid future disputes and ensure brand protection.

Currently, India does not require franchise registration, but proper documentation is critical to enforce rights.

Yes, but it must comply with FEMA regulations and possibly seek approvals depending on the sector.

 

Absolutely. We tailor the agreement based on your expansion model (single-unit, multi-unit, master franchise).

While not mandatory, it is common practice and should be clearly defined in the agreement.

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