Franchise Agreement India

Preparation for your franchise agreement in India, just in 7 days

It is very crucial for you to know the nitty-gritty of Indian franchising perfectly.

There is no such specific franchising legislation or law in India; however your business is completely protected when you integrate. All of the following Acts are protected while preparing for the agreements:

  • Indian Contract Act 1982
  • The Trade Mark Act 1999
  • The Arbitration and Conciliation Act 1996
  • The Competition Act 2002
  • Income Tax Act 1961
  • The Consumer Protection Act 1986
  • Intellectual Property Laws, Taxation Laws
  • Indian Labor Laws
  • Transfer of Property Act 1882
  • Foreign Exchange Management Act 1999
  • The Design Act 2000
  • The Patents Act 1970
  • The Copy Right Act 2013

When you understand all of the above Acts for your business, you need to take the 1st step correctly in creating effective franchise agreement in India.

The implementation of GST in July 2017 has simplified some of the provisions of franchise in India. The current taxation reforms in India have brought a uniform tax structure with greater clarity about the payments of royalty, franchise fees and other charges and removals incidents of duplication of taxation.   These are impacting the franchise systems in various ways. All tax payments and statutory filings are done electronically.

There are few things you need to structure and integrate perfectly while you plan to form the franchised terms and conditions.

If global companies want to adapt to the Master Franchise Agreements in India, they can look up to such developments positively:

Want to Know the Basics of a Franchise Agreement? 

You can easily download Franchise Agreement Sample PDF online or know about its content at our blog.

Franchising Your Business Formats, Manuals, Models and Agreements in Sample Word Pdf Doc.

Have you started the preparations to franchise your Business? Call us now to consult with our experts at Francture Brands for all of your franchising documentation requirements.

Do you have the list of documents required for the franchise in India?

The Franchise Agreement is mandatory for offering franchise in India. Here comes, how can you approach for creating franchise agreement draft from the consultants at Francture Brands that we have already done for 500+ companies  in the last two decades. We have devised a Franchise Agreement that protects you comprehensively is very balanced and competent.

How and when to Prepare a Franchise Agreement?  

We are able to develop competitive intelligence and ground-level understanding in the last two decades. There can be high-level of flaws across the structure. We help the franchisors to fix these flaws ASAP. With this expertise and experience, we protect our clients and make their franchise work. We help our clients in a range of services that involve entire scope of franchising. Particularly, we know what to do and what not to, specifically protecting you from costly mistakes.


Many business owners in an effort to start the franchising quickly, offer P&L sheets, ROI plans and a basic agreement( generally done by a lawyer) with prospective franchisees. They think these franchise disclosure documents and the simple franchise terms and conditions drafted by a lawyer are enough. They start recruiting few franchises quickly because their business or brand is very popular. Hence, they will have to do serious inquiries and can replicate the success in their respective locations. This is where they start to fall. It’s always necessary to form correct franchise strategy, documentation, training programs and support system at the earliest with the advice from experts.

Franchising is the just the tip of the iceberg that appears beautiful to many outwardly. Internally, you should develop a strong base to have a majestic tip on the top. 

Franchise Model Requirements

We at Francture Brands strongly believe in developing your franchise model first. Once your Franchise model is structured properly, you can go for the creation of a strong legal document. It’s then associated with important terms and conditions, rights and obligations, customer service standards, provisions, and terminations etc.  We analyze the roles and responsibilities of both sides and help the franchisors believe the advantages and limitations of working with franchises. The creation of ideal Franchise Agreement Format when you access the entire exercise properly, as said above and can be done within 7 days, if you’re already ready to sign up few franchises. 

Prepare your Franchise Agreement, Manuals and Other Documents from the experts. Make sure you get everything ready to protect your Franchise Business  

Registration of Franchise Agreement in India

There are some businesses which can’t be franchised in their original forms and needs to be redesigned at an early stage. They are to be reconfigured for franchising and must have the merits to scale up quickly. Working with an experienced franchise expert for the entire business model in this stage can be complex in helping you navigate the pitfalls of franchising early. One you’ve done this, and then only you should go for hiring a specialized franchising lawyer in India. Franchise Agreement is printed on legal stamp papers in India. These stamps papers can be purchased from the respective state registrar offices and both parties will sign the agreement before a witness.


It’s always advised not to replicate your competitors or follow a smaller business. Your business is innovative. Don’t do fish up for a franchise contract sample or a franchise agreement sample in India when you’re exploring different franchise agreements that can be suitable for your business or a franchise agreement that is closest to your industrial sector. The Draft Agreement sample must include your merits, demerits, goals and strategies. Never copy a Franchise Agreement Format, because that can be the source of committing most of the mistakes at your end. Your business is unique and shouldn’t anyone’s model. We have seen the blunders of being committed by this cloning, being termed “Franchise Genetic Failures”. 

Franchise Agreement not only protects but can be a Good Marketing Tool

Though Prohibitive Clauses are not part of a fair business practice, it generally forms an important part of Franchise Agreements. At times, Franchisors go all the way in safeguarding their business against perceived malpractices. Franchisees perceive their investments and efforts to be highly risky. While interacting with both sides, we always suggest the franchisors that they have an agreement in place that compliments their business growth. The agreement must be equally supportive for both sides, no matter how much it’s possible. All the rights referred justify Franchisee’s interest along with employee welfare and the franchisor’s business. At the end, it should ensure the expansion they want without compromising the legality.

Therefore, it’s extremely critical to have a franchise agreement in India, helping you to achieve the growth that you seek across various regions. In our view, this can be an impediment for franchise teams. Moreover, if these things aren’t done properly, franchises don’t pay the desired royalties and fees.

How does a franchise steal or replicate a franchisor’s business easily?

The franchise is hardly at fault, it’s the franchisor that is actually in the receiving end.  You’ve not protected the business adequately, and then you must be allowing the franchise to take the advantage.

Call us now for the protection of your business through the creation of right legal framework and documentation of your business.


Print   Email

Related Articles

How to make successful franchise

Franchise Quiz