Franchise Agreement
Full-form franchise agreement for Indian franchisors and franchisees covering grant of franchise rights, territory, IP usage, fees and royalties, operational standards, training, non-compete, and termination, aligned with Indian contract, IP, and competition law.
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What is a Franchise Agreement?
This is a full-form Indian franchise agreement template covering grant of franchise rights, territorial exclusivity, fees and royalties, brand and IP usage, operational standards, training, non-compete, and termination, drafted for sectors such as retail, F&B, education, and services.
When should you use this?
Common situations where this document is the right choice.
What's included
Key sections and clauses in this document.
How it works
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Frequently asked questions
Everything you need to know before creating your document.
Is there a specific franchise law in India governing this agreement?+
India does not have a standalone franchise statute. Franchise agreements are primarily governed by the Indian Contract Act, trademark and IP laws, competition law, consumer protection statutes, and sectoral regulations, which makes a carefully drafted contract essential.
How should royalties and marketing fund contributions be structured?+
Indian franchisors commonly charge an upfront franchise fee plus an ongoing royalty as a percentage of gross sales, sometimes combined with a marketing fund contribution in the 2–5% range, subject to commercial and sector norms.
Can the franchisor give exclusive territory rights?+
Yes, exclusive or protected territories are common, but they must be carefully defined to avoid competition law concerns and should often be tied to minimum rollout or performance obligations.
What protections does the franchisee get for its outlet investments?+
The template allows you to specify asset ownership, de-branding rules, and renewal mechanics. Franchisees should ensure clarity on term, renewal criteria, and compensation (if any) for unamortised investments in fit-outs and equipment.
How enforceable are non-compete clauses in Indian franchise agreements?+
Non-competes during the term, particularly where they protect legitimate IP and know-how, are more likely to be enforced. Post-term non-competes are more sensitive and should be carefully scoped in time and geography, often combined with strong confidentiality and non-solicit obligations.
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Compliant with Indian law
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Franchise Agreement