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Create Franchise Agreement Online
Define the relationship between franchisor and franchisee with a customizable franchise agreement. This document covers all necessary legal terms, including fees, obligations, and the use of intellectual property. You can tailor it to fit your business needs, preview it in real-time, and download it for free to ensure a smooth franchising process.
Please provide mandatory details like your name, address, etc. to download your personalized franchise agreement.
Document last updated on: 18/03/2025
Frequently asked questions
A franchise agreement in India is a legal contract between a franchisor and a franchisee, granting the franchisee the right to operate a business using the franchisor’s brand, products, services, and business model. The franchisee pays fees and royalties in exchange for these rights and receives support from the franchisor.
While there is no specific franchise law in India, the franchisor-franchisee relationship is primarily governed by the franchise agreement (which is governed by the Indian Contract Act, 1872).
Franchise agreements include provisions like the franchisor’s right to inspect franchisee operations, audit books of accounts, approve suppliers, and set conditions for new store openings. These mechanisms ensure that the franchisee adheres to brand standards and operational efficiency.
No, the franchisor cannot unilaterally change operational terms. Any amendments must be made with mutual consent and recorded in writing.
Both the franchisor and franchisee can terminate the agreement based on the terms specified in the contract. Unilateral termination outside the agreed terms could constitute a breach. However, Franchisees may be terminated in cases of coercion, fraud, misrepresentation, or undue influence by either of the party. (As it renders the agreement void/voidable as per the Indian Contract Act, 1872).
The renewal process is usually outlined in the franchise agreement. If no provisions for renewal are included, both parties must mutually agree on the terms. There are no specific legal requirements for renewals under the Indian law.
Yes, a franchisor can refuse renewal if the franchise agreement does not mandate it or if the franchisee fails to meet the criteria for renewal.
Yes, franchisors may include provisions restricting the transfer of the franchise or ownership interests. Such restrictions must be clearly outlined in the franchise agreement.
Indian law does not regulate the nature or amount of franchise fees. These terms are negotiated and agreed upon by the franchisor and franchisee.
Under the Foreign Exchange Management Act (FEMA), franchisees can make payments to foreign franchisors in their domestic currency, subject to compliance with relevant regulations.
Yes, confidentiality covenants are enforceable if they are reasonable and clearly defined in the agreement.
Franchisees are unlikely to be considered consumers under the Consumer Protection Act, 2019, as the law excludes commercial activities from its definition of consumer protection.