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What is a Franchise Agreement?

A Franchise Agreement is a legal agreement that enumerates different terms and conditions that the Franchisor and the Franchisee have mutually agreed upon and that establishes a legal obligation for both parties for running a successful business. It is an agreement where the Franchisor grants the Franchisee the permission to monetize their company name under decided terms by the parties.
Franchising provides an opportunity to buy a successful business that has a proven track record, solid supply chain, technical support along a greater success rate. Franchising can be regulated by the negotiation, and agreement on the terms of the contract created by a mutual understanding of the franchisee (operates business using trademark) and franchisor (owns trademark and business models).

Why Franchise Agreement?

Reduces Complexities
A Franchise Agreement will clarify the duties, obligations, and liabilities of the franchisor and franchisee, as well as everything else so that there is no ambiguity between them during their business relationship.
Serves as Legal Covenant
Since the terms and conditions are meticulously drafted in the Franchise Agreement and agreed beforehand, hence it has a legally binding effect.
Adherence to the Provison
Once a well-drafted Franchise Agreement has all details in the right manner; it avoids any sort of confusion which in turn reduces the liabilities of both parties.

Documents / Details we need

Names and References
Details of the Franchisor and Franchisee who will be the Parties to the Franchise Agreement.
Franchisee and Franchisor information
Identity proof (Driving License/Voter ID Card/Passport) and Address proof
Company Details
A brief description of the company's primary business and details.
Information of Business Conduct
Complete details of training, assistance, trademark penalties, royalties, standards of operation, insurance, etc.

Important Clauses

Grant of Franchise
The "Grant" section informs franchisees that the franchisor is providing them with a limited, non-exclusive, non-transferable license to use the service marks (franchisor's trademarks, logos, service marks, and system of operations) for the duration of the Franchise Agreement.
Fees and Required Purchases
This clause will include the initial franchise fee, any payments paid to the franchisor before opening, any costs paid to the franchisor throughout the franchise period, and any advertising fee obligations.
Term and Renewal
It specifies the duration (length of time) of the Franchise Agreement, which is calculated from the day the franchise agreement is signed to the date it expires. Prerequisites of this arrangement will be shared as well if renewal rights are granted.
Protection of Proprietary Information
It’s a crucial safeguard for the franchisor, and it's generally included in the franchise agreement that clearly defines item that makes up its proprietary, private and trade-secret information and as well as the restrictions imposed on the franchisee's ability to use it
Training & Quality Control
The clause includes any training, support, and quality control manuals offered by the franchisor, including additional training, seminars, meetings, or the like that the franchisor will either require or will encourage the franchisee to attend.
Indemnification and Dispute Resolution
All Franchise Agreements will include an indemnification clause, which states that the franchisee will reimburse the franchisor for any losses incurred due to negligence or wrongdoing. The dispute resolution clause will detail the franchisor's methods for resolving disputes with franchisees.
Franchising Rights and Territorial Limits
The Franchise Agreement must define the Franchising Rights and Territorial limits so that one Franchisee does not infringe the Franchising rights of the other and violates the territorial limits as well.
Use of Intellectual Property
The Franchise Agreement must define what is licensed to the Franchisee and how the intellectual property of the brand can be used and to what extent.

What's the process ?

1. Assessment
Our team will reach out to you to obtain the necessary information to assess the scope of the Franchise Agreement and its rationale, as well as any other relevant pieces of information.
3. First Ready Draft
We will complete the first draft of the Franchise Agreement and email it to you for approval within 48 hours. Following approval, any necessary adjustments will be made and submitted to you on the agreed next date.
2. Due Diligence and Drafting
Once we receive the information, we will begin drafting the agreement from scratch, including defining the reasons for the Franchise Agreement, its terms and renewal, and territorial limits as well as protection of proprietary information among other important clauses that will vary depending on the needs of each client.
4. Final Agreement
With a high-quality team of professionals, the entire process of creating the draft and delivering the final copy of the Franchise Agreement will be accomplished in 72 working hours.
1. Assessment
Our team will reach out to you to obtain the necessary information to assess the scope of the Franchise Agreement and its rationale, as well as any other relevant pieces of information.
2. Due Diligence and Drafting
Once we receive the information, we will begin drafting the agreement from scratch, including defining the reasons for the Franchise Agreement, its terms and renewal, and territorial limits as well as protection of proprietary information among other important clauses that will vary depending on the needs of each client.
3. First Ready Draft
We will complete the first draft of the Franchise Agreement and email it to you for approval within 48 hours. Following approval, any necessary adjustments will be made and submitted to you on the agreed next date.
4. Final Agreement
With a high-quality team of professionals, the entire process of creating the draft and delivering the final copy of the Franchise Agreement will be accomplished in 72 working hours.

Why choose us

PERSONALISED SERVICE

A dedicated Case Manager ensures quick turnout to all your queries and tailored solutions that fit perfectly for your requirements.

72 HOURS DELIVERY

All your drafting queries are addressed, understood, and delivered with quality under 72 Hours.

EXPERIENCED TEAM

Our team of dynamic professionals is well experienced and extremely proficient to cater to your needs, ensuring the best service.

24/7 HELPLINE

We are available to address and clarify all your queries round the clock. So you can worry less and focus more on the business.

Frequently Asked Questions

Any firm with a parent company that offers a fundamental business strategy and brand name is referred to as a franchisor. A franchisee is a third party who borrows the parent company’s values and brand image. While the franchise is owned, operated, and managed by people, the bigger parent business, which is generally an MNC, oversees the entire process.
The different laws which govern various aspects of franchising in India are as follows: 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
No. India does not have separate laws that deal explicitly with franchise business models. We do, however, have regulations governing how they must operate. There is no explicit legislation in India that governs franchise agreements, their cancellation, the drafting of provisions, and non-disclosure. However, many laws in India serve to govern and regulate the operation of franchise firms.

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