Don't wait! File your ITR before September 15 to avoid penalties.File Now

Franchise Agreement Draft in India

Q: What are the essential conditions of a franchise agreement?

A franchise agreement requires: Offer and Acceptance: A clear proposal and agreement from both sides. Consideration: An exchange of value (rights for fees, support for adherence). Legality: The business and agreement must be lawful. Additionally, specific disclosures (like a Franchise Disclosure Document, or FDD) are often legally mandated.

Q: What is the time period or term of a franchise agreement?

The term of the franchise agreement varies, usually from 5 to 20 years. Agreements also specify conditions for renewal.

Q: Who is the owner of the franchise agreement?

The franchise agreement is a contract binding both the franchisor (who owns the brand and system) and the franchisee. Neither "owns" the contract itself, but both are bound by it.

Q: Who signs a franchise agreement?

Authorized representatives of both the franchisor and the franchisee sign the franchise agreement. Individuals may also provide personal guarantees.

Q: What happens when a franchise agreement expires?

Upon expiry, the agreement can be: Renewed: Most common, if conditions are met. Non-Renewed: Either party may choose not to renew. Terminated: If renewal conditions aren't met or there's a breach. Sold/Reverted: Terms might require the business to be sold or returned to the franchisor.

Q: When can a franchise agreement be terminated?

A franchise agreement can be terminated for: Material Breach: Failure to fulfill significant obligations by either party. Mutual Agreement: Both parties agree to end it. Franchisee Issues: Bankruptcy, abandonment of business. Termination of the franchise agreement by the franchisor follows specific contractual clauses.

Q: Can I break a franchise agreement?

You can breach (break) a franchise agreement, but it leads to severe legal and financial consequences. It's a binding contract, and unauthorized termination will result in penalties and potential lawsuits. Avoid breaking a franchise agreement without legal advice.

Q: How do you break a franchise agreement?

Rather than "breaking" it, explore options like: Reviewing termination clauses. Negotiating mutual termination with the franchisor. Selling the franchise (if permitted). Consulting a franchise agreement attorney if the franchisor has breached.

Q: Are franchise agreements negotiable?

Core terms of franchise agreements, especially with major brands, are rarely negotiable to ensure consistency. However, there may be some room for discussion on specific points like territory boundaries or timelines, particularly in multi-unit or development deals. Always consult a franchise attorney to understand what might be negotiable.

Q: What is a typical royalty fee percentage in a franchise agreement?

This refers to the ongoing royalty fee, typically a percentage of gross sales, paid by the franchisee. It usually ranges from 4% to 12%, varying by industry and brand.

Start your franchise business confidently with RegisterKaro. We draft legally compliant franchise agreements that protect your rights and clearly define your business terms.

Custom Agreements for Every Business Model

Compliance with Indian Franchise & IP Laws

Complete Legal Support from Drafting to Review

Fast, Online & Paperless Process

Trusted by 20,000+ Entrepreneurs

4.6 out of 5

(5895)

4.0 out of 5

(1,907)

Full Name*

Phone Number*

Enter Your Email*

What Sets Us Apart

500+MCA Certified Experts

10,000+Trusted Reviews

2500+Monthly Clients Onboarded

Serving Businesses Across India

What Sets Us Apart

500+

MCA Certified Experts

10,000+

Trusted Reviews

2500+

Monthly Clients Onboardings

Serving Businesses Across India

Full Name*

Phone Number*

Enter Your Email*

Connect with RegisterKaro and let our experts handle the legal hassle while you grow your business.

Talk To Our Experts

We're Here To Help You

Your Information Is Safe With Us. We Never Share Your Details.

Frequently Asked Questions (FAQs)

What are the essential conditions of a franchise agreement?

−

A franchise agreement requires:

Offer and Acceptance: A clear proposal and agreement from both sides.
Consideration: An exchange of value (rights for fees, support for adherence).
Legality: The business and agreement must be lawful.

Additionally, specific disclosures (like a Franchise Disclosure Document, or FDD) are often legally mandated.

What is the time period or term of a franchise agreement?

Who is the owner of the franchise agreement?

Who signs a franchise agreement?

What happens when a franchise agreement expires?

When can a franchise agreement be terminated?

Can I break a franchise agreement?

How do you break a franchise agreement?

Are franchise agreements negotiable?

What is a typical royalty fee percentage in a franchise agreement?

Can a franchise agreement be registered?

What is ‘Buy Back’ in a franchise agreement?

How does a franchise agreement differ from a license agreement?

Why Choose RegisterKaro for Drafting Your Franchise Agreement?

Drafting a franchise agreement is a critical step to protect your business and build strong partnerships. RegisterKaro offers expert legal services to make this process simple and reliable.

Expert Legal Support: Our team knows the ins and outs of franchise laws in India to create clear, strong agreements.
Customized Agreements: We tailor each franchise agreement to fit your unique business model and goals.
Compliance Assurance: Ensure your agreement follows all legal requirements and industry standards.
Transparent Process: Stay informed at every step with easy communication and updates.
Quick Turnaround: Get your franchise agreement drafted efficiently without compromising quality.
Dedicated Customer Support: We are here to help you with any questions or concerns throughout the process.

Choose RegisterKaro for a hassle-free, expert franchise agreement drafting experience.

Why Choose RegisterKaro for Drafting Your Franchise Agreement?

Latest Blog

View All