Franchise Agreement

A franchise agreement is a legal arrangement that is binding on the franchisor and the franchisee. The contract details the franchisor’s expectations from the franchisee, how the business must be operated, and so on. The types of franchise agreement varies as per the nature of business. It is an agreement where the franchisor consents to grant the company’s name to the franchisee (individual or entity).

However, before understanding Franchise Agreement clauses in the franchise agreements, we shall understand the commercial angel behind how it can be beneficial.    

• The execution of business relationship between the Franchisor and the Franchisee
• Usage rights and limitations of the Franchisor’s brand name 
• Jurisdiction of Franchisee
• Royalty payment structure and the payment frequency
• Mentions the fees to be paid to the Franchisor
• Validity of the Agreement
• Mentions the Training & Operation support to be provided by the Franchisor
• Operation Process & Reporting format
• Termination & Dispute resolution mechanism

• 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