Franchise Agreement Template India - Free PDF/Word Download

About this agreement

Title: Franchise Agreement Format

Are you ready to launch or expand your business through franchising in India? Discover our comprehensive Franchise Agreement Format – a ready-to-use, customizable legal template available in PDF and Word formats for instant download.

Why is a Franchise Agreement Format Important?

A Franchise Agreement Format is the cornerstone of any successful franchising venture in India. This legally binding document outlines the rights, responsibilities, and expectations between the franchisor (the brand owner) and the franchisee (the operator). Governed by the Indian Contract Act, 1872, and relevant provisions under the Competition Act, 2002, it ensures compliance with Indian laws while safeguarding intellectual property, territory rights, and financial interests.

Without a solid Franchise Agreement Sample, businesses risk disputes over royalties, brand usage, training, or termination clauses. It's particularly vital in India's booming franchise sector, valued at over INR 10 lakh crore, spanning food chains, retail, education, and services. Using a professional Franchise Agreement Format minimizes legal risks, streamlines operations, and fosters long-term partnerships.

Key Elements of a Franchise Agreement

Our Franchise Agreement Format includes all essential sections to meet court and company requirements in India:

Parties and Recitals: Identifies the franchisor and franchisee, with background details.
Grant of Franchise: Specifies the rights granted, including use of trademarks, logos, and business systems.
Fees and Payments: Details initial franchise fees, ongoing royalties (typically 5-10%), advertising contributions, and renewal fees.
Territory and Exclusivity: Defines the geographic area and non-compete clauses.
Intellectual Property Rights: Protects trademarks, patents, and confidential information under Indian IP laws.
Operations and Standards: Outlines training, site selection, quality control, and operational manuals.
Term and Renewal: Duration (e.g., 5-10 years) and conditions for extension.
Termination and Remedies: Grounds for ending the agreement, buy-back options, and post-termination obligations.
Dispute Resolution: Arbitration clauses under the Arbitration and Conciliation Act, 1996, and governing law (Indian jurisdiction).
Indemnity and Insurance: Liability protections.

This Franchise Agreement Sample is drafted by legal experts to be fully compliant and adaptable.

Who Should Use This Franchise Agreement Format?

Ideal for:

Franchisors in retail, food & beverage (e.g., quick-service restaurants), education (coaching centers), and healthcare looking to scale nationally.
Franchisees entering established brands like apparel chains or fitness centers.
Startups and SMEs in India's franchise-friendly markets like Mumbai, Delhi, and Bangalore.

Common use cases include master franchise agreements, single-unit franchises, and area development deals. Whether you're in civil business expansions or commercial ventures, this ready-to-use template saves time and legal costs.

Download Your Franchise Agreement Format Today

Get started with our Franchise Agreement Format for free download in PDF/Word. For premium options, customize it instantly with AI tools or professional legal help. Perfect for Indian businesses seeking enforceable, professional contracts.

Final Note

While this Franchise Agreement Sample is customizable and ready-to-use, it's recommended to consult a legal advisor for specific modifications. Not a substitute for professional legal advice. Explore related legal templates like Partnership Agreement Format, Lease Agreement Format, or Non-Disclosure Agreement Sample for your business needs in India.

FRANCHISE AGREEMENT

Non-Judicial

Franchise Agreement

THIS AGREEMENT is made at _____________ on the _________ day of ________ 200____, By and Between:?

1. M/s. SHUBHAM, a proprietary concern of __________, having its principal place of business at ________________ ___________________ _____________________________________ India (Hereinafter called ?THE FRANCHISER?);

AND

2. M/S. NEW BORNE JERSEY, a proprietary concern of ___________________________________, having its principal place of business at ___________________________ ______________ _________________________________________ (Hereinafter called ?THE FRANCHISEE?).

W H E R E A S:?

(a) The Franchiser has been carrying on business of manufacturing readymade garments and many other allied products under the brand name of ?SHUBHAM? in India and are also running shops of marketing the readymade Garments under the trade name/brand ?SHUBHAM? at various places in India and other parts of the world.

(b) The Franchiser is the registered owner of trade mark/brand ?SHUBHAM? and the substantive goodwill and reputation attaching to the said business as referred to above.

(c) Pursuant to the discussion between the parties, the Franchiser wishes to appoint the Franchisee as the Franchisee and distributor for the sale of the products in readymade garments, manufactured and traded by Franchiser under the brand name of SHUBHAM.

(d) Franchisee is willing to act as the Franchisee and distributor of the products manufactured by SHUBHAM under the brand name of ?SHUBHAM? in certain parts of United States of America on the specific terms and conditions appearing hereinafter.

IT IS HEREBY AGREED AND RECORDED AS FOLLOWS:?

TERRITORY:?

1. The Franchiser hereby appoints the Franchisee as its Franchisee to sell and promote the sale of the products under the brand name of SHUBHAM in _____________ and ________________________ in U.S.A. and presently in all for two stores only.

2. The Relationship between Franchiser and Franchisee shall be solely that of the seller and buyer and Franchisee shall have no right or authority to create or assume any obligations or responsibility of any kind in the name of or on behalf of Franchiser. Franchisee shall not have any right to represent Franchiser for any purpose whatsoever unless otherwise agreed to in writing on a case-to-case basis.

3. Franchiser will advertise and publish the name of the Franchisee in the relevant international advertisements. The Franchisee at its own cost will advertise and popularize the product in its local territory with the approval of Franchiser only to maintain uniformity in the advertisements.

4. The initial period of the present arrangement shall be for a period of one year commencing from __________ and expiring on ____________. If not terminated, after expiry of the above period the agreement will stand extended for a further period of ______________ years.

5. The Franchisee will pay to the Franchiser a lump sum franchise fee of 100,000/- USD for the initial term of twelve months and which will have to be paid within 12 months from the date of this agreement in equal monthly installments.

6. The goods will be exported from ___________ by the Franchiser and/or by their specified sister concerns only. The Franchisee will place the orders at _____________. The Franchisee can also purchase the goods from Franchiser?s head office at __________ by making cash payment at the wholesale price. The Franchiser may give goods worth _____________ USD on credit per shop for 60 days. For any excess goods ordered, the Franchisee shall pay in advance before delivery and/or shipment of the goods. In the event of delay the Franchisee shall pay compensation to the Franchiser in the form of liquidated damages @ 1.5% per month on the outstanding amount till payment.

7. In addition to the Franchise fee and price of the goods, the Franchisee will also pay to the Franchiser monthly royalty @ of 10% of sales or 3000 USD per month whichever is higher. The same will be payable on the monthly basis and in any case before the 5th day of the following month. In the event of delay, the Franchisee will pay liquidated damages
@ 1.5% per month to the Franchiser for the delayed period.

8. PROHIBITION:

(a) The franchisee will at no time claim any right, title and interest on the mark/name/brand ?SHUBHAM? as the same is the exclusive ownership of the Franchiser.

(b) The Franchisee will only store and sell the products
of the Franchiser under the title ?SHUBHAM? and
shall not directly or indirectly deal with any other garment products.

(c) The Franchisee will not do any acts, deeds, things, etc., whereby the name and goodwill of the Franchiser is disturbed and/or affected and/or degraded in any manner but will always promptly and diligently take all steps and measures to protect and safeguard the Franchiser?s said mark/name/brand ?SHUBHAM? and Franchiser?s goodwill and reputation attached thereto.

9. Franchisee shall regularly furnish information and reports such as sales, inventory, market conditions and any other available information to the Franchiser. Franchiser shall have the right to inspect the showroom maintained for the Franchiser?s products by the Franchisee with regards to the quality of the goods and services provided by the Franchisee as also shall have right to inspect the relevant books and all other records maintained by the Franchisee.

10. Franchisee hereby acknowledges that any and all patents, utility models, trade marks, designs and any other marks used or embodied in the products shall remain the sole property of the Franchiser. Franchisee shall not use directly or indirectly in part or whole Franchiser?s patents, utility models, trade marks, designs and any other marks except in the manner and to the extent the Franchisee expressly consents in writing.

11. The Franchisee shall decorate and furnish its showroom at its own expenses as per the design and layout provided by the Franchiser. Franchisee shall put up the SHUBHAM name board on its showroom as per the logo provided by the Franchiser. The Franchiser shall also provide carry bags design advertisements commercials and logos at the cost of Franchisee.

12. The Franchiser shall have the right to terminate the agreement in the event if there is any delay in payment or the Franchisee does not maintain adequate stock or does not provide good after sale services or does not meet the minimum stipulated turnover or if he is found to sell goods not purchased from the Franchiser or commits breach of this agreement. This agreement shall terminate automatically if and when the Franchiser does so.

13. In the event of termination:?

(a) The Franchisee shall as early as possible but not later than 30 days from the date of termination, directly or indirectly stop using word/name/mark ?SHUBHAM? or any similar name resembling to ?SHUBHAM? as to be likely to cause confusion or deception in any manner including the using for its trade name.

(b) The Franchisee shall accordingly change the names of the two stores/shops.

(d) The Franchisee shall withdraw and deliver to the Franchiser all advertising material and other documentation relating to the business, trade name/mark of the said goods.

14. In the event of any disputes and differences between the parties, the courts at _________ alone shall have jurisdiction to try and entertain the same.

(FRANCHISER) (FRANCHISEE)

WITNESS:

0 PDF downloads

0 Word downloads

Download PDF₹99 Download Word₹99

Important Guidelines

Guidelines for Drafting Franchise Agreement:

Identification of Parties: Clearly state the names and details of the franchisor and franchisee entering the agreement, providing their full legal names, addresses, and contact details.

Franchise Details: Specify details of the franchise, including the brand, trademarks, and the specific territory or location covered by the agreement.

Franchise Fee and Royalties: Clearly articulate the franchise fee, royalty structure, and any other financial obligations, outlining payment schedules and terms.

Terms and Duration: Define the duration of the franchise agreement, including renewal options and conditions for termination.

Operational Guidelines: Outline operational standards, brand guidelines, and any specific requirements to maintain consistency across franchise outlets.

Support and Training: Specify the support and training provided by the franchisor to the franchisee, ensuring a smooth and successful operation.

Common Mistakes to Avoid:

a. Vague Financial Terms: Clearly define fees, royalties, and payment terms to prevent disputes. b. Incomplete Territory Description: Clearly specify the territory covered to avoid conflicts with other franchisees. c. Unclear Termination Conditions: Clearly outline conditions for termination to prevent misunderstandings. d. Neglecting Legal Compliance: Ensure the agreement complies with franchise laws and regulations in the relevant jurisdiction.

Franchise agreements are used in business arrangements where a franchisor grants the right to operate a business using its brand and business model to a franchisee. Legal consultation is crucial to ensure compliance with franchise laws, protect both parties' interests, and maintain the integrity of the brand.

Frequently asked questions

What is a Franchise Agreement?→

A Franchise Agreement is a legal contract between a franchisor and franchisee in India, outlining terms for using the brand, trademarks, business model, and support. It governs rights, obligations, fees, and termination under Indian laws.

Is this Franchise Agreement legally valid in India?→

Yes, this template complies with the Indian Contract Act, 1872, and IP laws. Customize it and get it reviewed by a lawyer for enforceability in your state.

Do I need to pay stamp duty on a Franchise Agreement in India?→

Yes, stamp duty applies as per the Indian Stamp Act, varying by state (typically 0.1-1% of franchise fee/royalty). Execute on stamp paper for legal validity.

In what format can I download the Franchise Agreement?→

Download the Franchise Agreement in editable Word (.docx) or non-editable PDF formats for convenience, printing, and sharing.

Can I customize or edit the Franchise Agreement template?→

Absolutely, the Word version is fully customizable. Edit clauses on territory, fees, duration, and obligations to fit your specific franchise deal in India.

When and who should use this Franchise Agreement?→

Franchisors and franchisees in India should use it when entering a franchise relationship. Perfect for new ventures, expansions, or brand licensing.