Franchise Agreement Drafting Services 

With globalization, numerous international and domestic brands have entered India through the franchise model. A Franchise Agreement is a crucial legal contract that establishes the relationship between the franchisor (brand owner) and the franchisee (business operator). It defines their rights, obligations, and responsibilities, ensuring smooth business operations and legal protection for both parties.

If you are planning to start or expand a franchise business, hiring a skilled franchise lawyer is essential to safeguard your interests and ensure compliance with Indian laws.

Why Hire LawChef for Franchise Agreement Drafting?

At LawChef, we have a dedicated team of highly experienced commercial lawyers who specialize in franchise laws. Our legal experts will:

  • Draft a world-class, customized Franchise Agreement.

  • Ensure that your business is legally protected under multiple Indian laws.

  • Advise you on structuring franchise models for long-term growth.

  • Assist in negotiations and dispute prevention with franchise partners.

Whether you are a franchisor looking to expand your brand or a franchisee entering into a new venture, our lawyers provide end-to-end legal support in surrounding regions.

Legal Framework Governing Franchise Agreements in India

Although India does not have a dedicated franchise law, franchise agreements are regulated under several legislations, including

  • Indian Contract Act, 1872

  • The Trademark Act, 1999

  • The Arbitration and Conciliation Act, 1996

  • The Competition Act, 2002

  • Income Tax Act, 1961

  • Consumer Protection Act, 2019

  • Intellectual Property Laws (Patents, Designs, Copyrights)

  • Labour & Employment Laws

  • Transfer of Property Act, 1882

  • Foreign Exchange Management Act (FEMA), 1999

Benefits of a Well-Drafted Franchise Agreement

✔ Creates a legally binding relationship between franchisor and franchisee.
✔ Reduces chances of disputes or breach of terms.
✔ Clearly defines operational guidelines and brand protection measures.
✔ Secures financial interests of both parties.
✔ Helps in long-term business growth with mutually agreed terms.

Key Clauses in a Franchise Agreement

An ideal franchise agreement should cover the following:

  1. Details of the franchisor & franchisee (legal names, addresses, and company details).

  2. Grant of Franchise (scope of rights, exclusivity, and territory).

  3. Duration, Timeline & Renewal (validity period and conditions for extension).

  4. Monetary Terms (franchise fee, royalty payments, revenue sharing, security deposit).

  5. Site Selection & Approval (location requirements and franchisor’s approval).

  6. Business Operations & Compliance (standards, procedures, quality control).

  7. Branding & Advertising (marketing obligations, contribution to advertisement funds).

  8. Intellectual Property Protection (use of trademarks, logos, copyrights, and designs).

  9. Training & Support (initial and ongoing support by franchisor).

  10. Termination & Exit Clauses (grounds for termination, notice period, compensation).

  11. Dispute Resolution Mechanism (arbitration, mediation, governing jurisdiction).

  12. Confidentiality & Non-Compete (restricting misuse of brand secrets, no competing business).

  13. Force Majeure Clause (protection against unforeseen events like pandemics and natural disasters).

  14. Taxation & Compliance (GST, income tax, and regulatory compliance).

  15. Succession & Transfer of Rights (franchise transfer, inheritance, or buy-back options).

 

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