Franchise Agreement

What this is

A franchise agreement between a brand owner and a franchisee - territory, term, franchise fee and royalty, brand and IP licence, training and support, operating standards, supply, marketing, reporting, non-compete, termination and post-termination obligations - drafted for either side. It is for brands expanding through franchisees and for people taking a franchise. Our panel advocate drafts and reviews the agreement and delivers it signed on letterhead; stamping is a separate step we explain.

What you get

A franchise agreement drafted, reviewed and signed by our panel advocate on letterhead, covering the franchisor and franchisee, grant and territory, exclusivity, term and renewal, franchise fee, royalty, marketing contributions and payment terms, trade mark and IP licence and brand standards, premises and fit-out, training and support, operating manual, supply of products and approved vendors, pricing, marketing, reporting and audit, insurance, data and customer ownership, confidentiality and non-compete, transfer and assignment, termination for cause and its consequences, post-termination de-branding, indemnity and liability, and dispute resolution. Delivered ready for execution, with a note on stamp duty and on the trade mark registration the licence relies on. Stamp duty is not included.

How it works

1. 1Tell us the brand and the dealFranchisor and franchisee details, the brand and trade mark, fees, territory and term. Upload the brochure or term sheet.
2. 2Confirm the commercial termsFee, royalty, marketing fund, supply terms, targets and renewal.
3. 3Answer the advocate's questionsWhether the trade mark is registered and in whose name, what is supplied and at what margin, what standards and training are promised, and what happens on exit.
4. 4PayPay the fee.
5. 5Advocate drafts and signsOur panel advocate drafts the agreement and signs it on letterhead.
6. 6Agreement is deliveredYou receive the agreement for execution, with the stamping and trade mark note.

What to have ready

• Trade mark registration certificate or applicationOf the brand.
• ID and PAN of every partyAadhaar and PAN of each person signing; incorporation documents if an entity.
• Authority letter or board resolution (if you have it)If signing for a company or firm.
• Franchise brochure, disclosure document or term sheet (if you have it)If any.
• Existing franchise agreement template or another franchisee's agreement (if you have it)If any.
• Operating manual or standards summary (if you have it)If available.
• Premises lease or ownership proof (if you have it)If the outlet is identified.

What this is based on

• Contract Act 1872 (1872)
• Trade Marks Act 1999 (1999)
• Competition Act 2002 (2002)
• Income Tax Act 1961 (1961)
• FEMA 1999 (1999)