Franchise Agreement

Establish a clear and legally sound framework for your franchise operations.

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Franchise Agreement

A Franchise Agreement is a legally binding contract between a franchisor (the brand owner) and a franchisee (the individual or entity operating a franchise). It outlines the terms and conditions under which the franchisee can operate a business using the franchisor’s trademarks, brand name, and business systems.

Contents of a Franchise Agreement

A well-drafted Franchise Agreement covers essential details including:

How it Works

Laws Governing Franchise Agreements in India

Franchise Agreements are governed by various laws, including:

  • The Indian Contract Act, 1872.
  • The Competition Act, 2002
  • Income Tax Act, 1961
  • Consumer Protection Act, 1986
  • Arbitration and Conciliation Act, 1996
  • The Foreign Exchange Management Act, 1999
  • The Trademarks Act, 1999
  • Patent Act, 1970
  • Design Act, 2000
  • Copyright Act of 1957

Frequently Asked Questions (FAQ)

Freelancers are not bound by the organization’s employment rules (leave, attendance, etc.) and are not entitled to benefits such as PF or gratuity.

Franchising involves significant initial investment and may limit operational flexibility. There's also the risk of dependence on the franchisor and potential competition from other franchisees.

The time required to draft an agreement varies depending on factors like the franchise complexity, negotiation time, and legal review. Typically, it takes several weeks or months.

Yes, negotiation is often possible. Common areas for negotiation include franchise fees, royalty rates, territory rights, and marketing contributions.

Breaching the agreement can lead to serious consequences, such as termination, financial penalties, or legal action. It's crucial for franchisees to strictly adhere to the terms of the agreement.

Absolutely. We ensure full confidentiality and protect your personal and business information as part of our professional commitment.

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