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Agreement

Franchise Agreement

An agreement granting a franchisee the right to operate a business under the franchisor's brand, system and standards.

FRANCHISE AGREEMENT

This Agreement is made on [Effective Date] between [Franchisor Name] and [Franchisee Name].

1. Parties. This Franchise Agreement is made between [Franchisor Name], of [Franchisor Address] (the "Franchisor"), and [Franchisee Name], of [Franchisee Address] (the "Franchisee"), together the "Parties".

2. Grant and Scope. The Franchisor grants the Franchisee a [exclusive / non-exclusive] licence to establish and operate a [Brand] outlet at [Location] using the Franchisor's trademarks, systems, know-how and operating manual, within the territory of [Territory].

3. Term. This Agreement is effective from [Effective Date] for [Number] years, renewable subject to the Franchisee's compliance and payment of the renewal fee.

4. Fees, Royalty, Payment and GST. The Franchisee shall pay a one-time franchise fee of Rs. [Amount] and an ongoing royalty of [Rate]% of net sales, plus a marketing contribution of [Rate]%. All fees are exclusive of GST, charged at the applicable rate on valid tax invoices. Payments are due within [Number] days. TDS shall be deducted as per law.

5. Obligations and Brand Standards. The Franchisee shall operate strictly per the operating manual, maintain quality, decor and service standards, purchase approved supplies, and permit inspections. The Franchisor shall provide training, brand support and the operating system.

6. Intellectual Property. All trademarks, trade dress, systems and know-how remain the exclusive property of the Franchisor. The Franchisee acquires only a limited licence and all goodwill accrues to the Franchisor.

7. Confidentiality. The Franchisee shall keep the operating manual, know-how and business information strictly confidential, during and after the Term.

8. Indemnity. The Franchisee shall indemnify the Franchisor against claims and losses arising from the operation of the outlet or breach of this Agreement.

9. Termination. The Franchisor may terminate for material breach, non-payment, or failure to meet standards uncured within [Number] days. On termination, the Franchisee shall cease using the brand and return all confidential materials.

10. Governing Law, Jurisdiction and Arbitration. This Agreement is governed by the laws of India, subject to the exclusive jurisdiction of the courts at [City]. Disputes shall be referred to a sole arbitrator under the Arbitration and Conciliation Act, 1996, seated at [City], in English.

_____________________
For [Franchisor Name]
Authorised Signatory
_____________________
For [Franchisee Name]
Authorised Signatory

Before you use it — fill in / check

  • Franchisor
  • Franchisee
  • Effective date
  • Territory

How to use this template

  1. Read through and replace every [bracketed] or blank placeholder with your actual details.
  2. Delete any clause that doesn't apply and add anything specific to your situation.
  3. Click Print / Save as PDF to download, or Copy text to paste into your letterhead.
  4. Get it signed / stamped / notarised as required, and keep a copy for your records.

This is a general, editable template for convenience only — not legal advice. For anything material, have a professional review it. TaxClue isn't liable for how it's used.