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Drafting Franchise Agreement In India

Franchising has been one of the profitable business models that involve the domestic players as well as foreign businesses.There are various types of franchising systems are in place, which includes the dealer arrangement, marketing arrangement, trademark-usage arrangement, product distribution arrangement, manufacturing arrangement, etc.

Franchise Agreement Form

The franchise agreement should contain the standard provisions of the franchise. These include the right to operate the franchise in a specified area, cancellation provisions, and quality standards. The agreement should also specify if and when the franchisor will retain its intellectual property and provide continuing training to the franchisee. 

The duration of the franchise should also be specified in the franchise agreement. The franchisee’s territory should be covered by the franchisor’s intellectual property. Any franchisee must meet all of the requirements listed in the agreement. These include property maintenance, insurance, records, hours of operation, and standards of conduct. 

The Franchise Agreement should also specify the boundaries of the franchise territory. Exclusive territories should be protected. The franchisor must give a franchisee the right to change the name of the business. It should also specify the duration of the contract. The terms should also include any penalties for failure to meet the requirements of the franchisor.

Before applying Franchise Agreement

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Documents Required For Franchise Agreement

Franchise Fees

Duration

Intellectual Property

Area of Operation

Franchisee Rights

Penalty Clauses

Training & Support

ROI

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