Overview
A Franchise Agreement is a legally binding contract between a franchisor and a franchisee, under which the franchisor grants the franchisee the right to operate a business using its brand name, trademarks, business model, and operational systems. In India, franchising is a popular method of business expansion, allowing brands to grow rapidly while enabling entrepreneurs to start a business with an established identity and proven processes.
The Franchise Agreement outlines the rights, duties, and obligations of both parties. It includes important terms such as franchise fees, royalty structure, territory rights, duration of the franchise, training and support, quality standards, and marketing obligations. The agreement also specifies conditions related to intellectual property usage, confidentiality, non-compete clauses, and termination. A clearly drafted agreement helps avoid misunderstandings and protects the commercial interests of both franchisor and franchisee.
Since a Franchise Agreement involves long-term commercial commitments, it must be drafted with precision and clarity. The document should balance control for the franchisor with reasonable operational freedom for the franchisee. It also addresses compliance with applicable laws such as taxation, labour regulations, and consumer protection norms. Proper legal drafting ensures that the agreement remains enforceable and commercially viable.
At BizGlobal, we assist businesses and entrepreneurs in drafting customised Franchise Agreements that align with their business objectives and legal requirements. From structuring commercial terms to safeguarding brand rights and ensuring legal compliance, our team provides end-to-end support to help both franchisors and franchisees enter into secure and transparent franchise relationships.
