Are you franchising your
brand or business?
You will require a Franchise Agreement to protect your intellectual property rights and govern the other important terms, such as royalty, payment and more.
Expert legal advice — reply within 30 min
FRANCHISE AGREEMENT
A Franchise Agreement in India is a contract where a business (Franchisor) consents to grant the enterprise name or company processes or the company product to an individual or an entity (the franchisee). The Franchise Agreement lays the terms between both the consenting groups. It defines the Remuneration for the franchisee (payment in the way of royalties) for the usage of the business trademark, etc., Conditions of the usage of the brand name, and Terms concerning disciplinary provisions, varying from financial penalty and allowances to withdrawal of the business franchise and the contract.
How it works?
Share franchise model
Provide franchise fees, territory rights, brand usage terms, and operational requirements.
Agreement drafting
Our lawyer drafts the franchise agreement with royalty, training, quality control, and renewal clauses.
Review & negotiation
Both franchisor and franchisee review terms and negotiate with our expert guidance.
Execution ready
Final franchise agreement delivered on stamp paper — legally binding and protecting both parties.
Contents of a Franchise Agreement
- The operational relationship between the Franchisor and the Franchisee
- Usage rights and limitations of the Franchisor's brand name and trademark
- Designates the Territory
- Defines the Royalty payment structure and the payment frequency
- Mentions the Upfront fees to be paid to the Franchisor
- Outlines the validity of the Agreement
- Mentions the Training & Operation support to be provided by the Franchisor
- Outlines the Operation Process & Reporting format
- Termination & Dispute resolution mechanism
Laws governing Franchise Business in India
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
Why Legitax
- Senior Corporate Expert Lawyers: We will get your document drafted/reviewed by Senior Expert Corporate lawyers. You can track the progress of your document on our platform at all times.
- 4.5 Customer Score: Clients are delighted with our service! They have consistently rated us high because of our focus on delivering quality output and providing regular updates.
- Responsible Delivery: Our team of experienced business advisors are just a phone call away. Our team will ensure that your interaction with the expert lawyer is smooth and seamless and the document draft is delivered to you within the committed timeline.
Deliverables
Our standard deliverables for every document drafting includes:
- 30 Minutes of Talk-Time with the Lawyer for drafting/reviewing the Agreement
- First draft of the documents will be delivered to you within a maximum of 2 working days
- Post-delivery of the first draft – 2 Iterations per Document to incorporate your suggestions/changes
Chat with us
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Bengalore, Karnataka
The Legal advice I get is straightforward and easy to understand, which is important for me. Using Legitax has taken away a lot of stress when it comes to legal matters. I definitely recommend it to anyone looking for quick and reliable legal help.
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Chennai, Tamil Nadu
The advocate I connected with on Legitax was incredibly helpful, clearing up many doubts I had. They offered solutions and insights into issues that were affecting my family and me. I've had such a positive experience that I wouldn't hesitate to recommend Legitax to my friends.
Bhavesh Jain
Jaipur, Rajasthan
I was really impressed with the quality of legal advice I received. The lawyer was patient, knowledgeable, and took the time to explain everything in detail. It felt like having a personal legal advisor at my fingertips.
Lata Sharma
Amritsar, Punjab
Very convenient service. I needed urgent legal advice regarding a property dispute and was connected with a qualified lawyer within minutes. The consultation was thorough and the advice was practical and actionable.
Prakesh Ranjan
Patna, Bihar
Excellent platform for legal consultations. The process is seamless and the lawyers are very professional. I got my documents reviewed quickly and the feedback was comprehensive. Highly recommended for anyone needing legal assistance.
Preety Singh
Lucknow, Uttar Pradesh
Legitax made the entire process of getting legal help so much simpler. From consultation to document drafting, everything was handled professionally. The pricing is transparent and reasonable.
Arvind Pratap
Bhopal, Madhya Pradesh
I've been using the Legitax app and it's really made dealing with legal stuff easier. It's great how I can just open the app and quickly find a legal expert to talk to, no matter what time it is. Every time I've had a question, big or small, I've gotten easy-to-understand answers from their experts. The app is super easy to use too, which is a big plus for me. I feel more confident handling legal things now. Legitax has been a big help!
Vijay Kanoor
Bengalore, Karnataka
The Legal advice I get is straightforward and easy to understand, which is important for me. Using Legitax has taken away a lot of stress when it comes to legal matters. I definitely recommend it to anyone looking for quick and reliable legal help.
Krishnamoorthy B
Chennai, Tamil Nadu
The advocate I connected with on Legitax was incredibly helpful, clearing up many doubts I had. They offered solutions and insights into issues that were affecting my family and me. I've had such a positive experience that I wouldn't hesitate to recommend Legitax to my friends.
Bhavesh Jain
Jaipur, Rajasthan
I was really impressed with the quality of legal advice I received. The lawyer was patient, knowledgeable, and took the time to explain everything in detail. It felt like having a personal legal advisor at my fingertips.
Lata Sharma
Amritsar, Punjab
Very convenient service. I needed urgent legal advice regarding a property dispute and was connected with a qualified lawyer within minutes. The consultation was thorough and the advice was practical and actionable.
Prakesh Ranjan
Patna, Bihar
Excellent platform for legal consultations. The process is seamless and the lawyers are very professional. I got my documents reviewed quickly and the feedback was comprehensive. Highly recommended for anyone needing legal assistance.
Preety Singh
Lucknow, Uttar Pradesh
Legitax made the entire process of getting legal help so much simpler. From consultation to document drafting, everything was handled professionally. The pricing is transparent and reasonable.
Arvind Pratap
Bhopal, Madhya Pradesh
Frequently asked questions
A Franchisor is a business, which is the parent company that owns the brand name and the product/technology knowhow. The parent company loans these principles, product and brand to another entity known as the Franchisee. While the Franchise is independently owned, operated and managed, but the entire process of the usage or brand and sales of the product is overseen by the larger parent company.
No, India does not have separate laws that deal explicitly with franchise business models. India does not have any particular law that deals specifically with the franchise agreement, its termination, the setting of clauses, and non-disclosure. But several enactments help control and regulate the functioning of franchise business in India.
Yes, Franchise Agreement must be stamped according to relevant Stamp Duty Act, as applicable to your state.
The difference between licensing and franchising is that licensing is a legal relationship that is limited in scope and relates only to the use of a trademark or technology, whereas franchising involves a relationship that goes beyond the grant of a license and includes a relationship of control where the underlying business is required to operate in accordance with designated systems and procedures.