Franchise Agreement
Expand your brand through franchising — comprehensive franchise agreements protecting your brand, fees and standards.
- Brand Control
- Revenue Protected
- Territory Clarity
What is Franchise Agreement?
Franchising multiplies your brand with other people's capital — but only the franchise agreement keeps it your brand. It must lock down trademark licensing, territory rights, fee structures (franchise fee + royalty), quality standards, supply obligations, training, audits, and what happens when a franchisee underperforms or exits.
India has no dedicated franchise statute — the agreement IS the law between you, drawing on contract, trademark, and competition law. That makes drafting quality decisive: weak agreements lose territory control, leak know-how to future competitors and make non-performing franchisees impossible to remove.
Taxwapsi's lawyers draft franchisor-grade agreements (and review them for prospective franchisees): brand-usage rules, operations-manual compliance, royalty and audit rights, renewal and termination mechanics, post-termination de-branding and enforceable IP protection.
Expert Pro Tip
Register your trademark BEFORE franchising — licensing an unregistered mark weakens both your royalty justification and your power to stop an ex-franchisee from continuing under a copycat name.
Choose Your Package
Transparent pricing — professional fee shown, government fees extra where noted.
Starter
Franchisee-side agreement review.
All Inclusive
Get StartedWhat you'll get
- Clause-by-clause review
- Risk note in plain language
- Negotiation points list
- Lawyer consultation (30 min)
- 3-day turnaround
Standard
Franchisor master agreement.
All Inclusive
Get StartedWhat you'll get
- Complete franchise agreement
- TM licence & brand standards
- Fee, royalty & audit clauses
- Territory & termination mechanics
- 3 rounds of revisions
Pro
Full franchising legal kit.
All Inclusive
Get StartedWhat you'll get
- Everything in Standard
- Franchisee application + LOI formats
- Operations manual confidentiality annexure
- Trademark filing (1 class) if needed
- Termination/default notice formats
- Dedicated franchise lawyer
* Timelines depend on government processing. T&C apply.
Benefits of Franchise Agreement
Brand Control
Trademark licence terms, brand-usage rules and quality standards that keep every outlet on-brand.
Revenue Protected
Franchise fees, royalty computation, payment schedules, audit and inspection rights clearly enforceable.
Territory Clarity
Exclusive/non-exclusive territories, carve-outs for online sales, and expansion rights defined.
Know-How Safeguarded
Operations manual confidentiality and IP clauses that stop franchisees becoming competitors.
Exit Without Chaos
Termination grounds, cure periods, de-branding obligations and post-term restrictions enforced.
Scalable Template
One master agreement engineered for repeat use across all future franchisees.
How It Works — Step by Step
- 1
Franchise Model ReviewDay 1
Your brand assets, fee model, territory plan and operations standards mapped.
- 2
Agreement DraftingDay 2–3
Comprehensive franchise agreement with licensing, fees, standards, audit and exit terms.
- 3
Review & RevisionsDay 4
Your review; revisions incorporated (2 rounds included).
- 4
Execution & RolloutDay 5
Stamping guidance and a rollout checklist for onboarding franchisees consistently.
Documents Required
Prepare your documents in the order below — start with Document 1 and move down the list.
Brand & IP Documents
- 1
Trademark Registration/ApplicationRequired
TM details for the licence clause (we can file if missing).
- 2
Brand & Operations StandardsIf applicable
Operations manual or SOPs, if documented.
Commercial Model
- 3
Fee StructureRequired
Franchise fee, royalty %, marketing fund contribution.
- 4
Territory PlanRequired
Exclusive/non-exclusive, area definitions, online-sales treatment.
- 5
Term & Renewal IntentIf applicable
Typical 3–9 year terms with renewal conditions.
Frequently Asked Questions
Is there a franchise law in India?
No single statute — franchising runs on the Indian Contract Act, Trade Marks Act, Competition Act and consumer law. The agreement is therefore everything: it defines rights no statute will fill in for you. This is why professional drafting matters more in India than in countries with franchise disclosure laws.
What fees do franchisors typically charge?
A one-time franchise fee (brand entry + training), ongoing royalty (commonly 5–10% of net sales or a fixed monthly amount), and often a marketing-fund contribution (1–3%). The agreement must define the revenue base precisely and give audit rights — under-reporting is the classic dispute.
Exclusive territory — should I grant it?
Franchisees push for exclusivity; franchisors should grant it narrowly: defined radius/pin codes, performance conditions to retain it, and explicit carve-outs for online channels and institutional sales. We structure territory as earned, not absolute.
How do I remove a non-performing franchisee?
Through the agreement: measurable performance standards, breach notice with cure periods, termination rights, and post-termination obligations (de-branding, sign removal, customer-data handover, non-use of know-how). Without these clauses, exits become hostage negotiations.
What happens to the brand after termination?
The agreement must require immediate cessation of trademark use, de-branding of premises, return of manuals and materials, and transfer of telephone/listings. Combined with your registered TM, this lets you act fast against an ex-franchisee continuing under your goodwill.
Franchise vs distribution vs licence — which is my model?
Franchise = brand + business format + ongoing control and royalty. Distribution = product resale without brand-format control. Licence = IP usage rights alone. The legal obligations differ; mislabeling causes tax and control problems. We confirm the right structure before drafting.
What should a prospective FRANCHISEE check before signing?
Trademark ownership, realistic financial projections, territory protection, renewal terms, exit costs, supply pricing mechanics and personal guarantees. We run franchisee-side reviews with a practical risk note — often saving buyers from one-sided agreements.
Is stamp duty payable on franchise agreements?
Yes — as an agreement (and licence), state stamp duty applies, varying by state and sometimes by fee value. Unstamped agreements face admissibility issues precisely when you need to enforce. We compute the right duty for your state.
What Our Clients Say
4.6/5(2,000+ reviews)Our trademark got objected and we were clueless. Their IP attorney drafted a brilliant reply — mark accepted and published within months.
My freelancer agreement now has milestone payments and IP-on-full-payment. A client who used to delay invoices paid in 4 days this time.
My Pvt Ltd was registered in 12 days flat. Every step explained, pricing exactly as quoted, and the post-incorporation kit covered everything. Highly recommended.
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