VENDORS, PARTNERS & FOUNDERS

Franchise Agreement

Use when you license your brand, systems and know-how to an independent operator for a fee and royalty. Register your trade mark first; the franchisee uses it under your quality control as a permitted user.

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First party (your business) *

First party entity type

First party registered address *

First party signatory & designation *

Second party *

Second party entity type

Second party address *

Second party signatory & designation *

Brand / trade mark *

Trade mark registration / application no. *

Approved outlet address *

Protected territory

One-time franchise fee (₹) *

Royalty (% of monthly net sales)

Marketing fund contribution (% of net sales)

Initial training (days)

Term (years)

Place *

Date *

Courts / seat of arbitration (city) *

Laws this relies on

Trade Marks Act, 1999 · Section 2(1)(r) read with Section 48Permitted use by a licensee under the proprietor's control (applies to registered marks); it counts as use by the proprietor.
Trade Marks Act, 1999 · Section 29Use of the mark beyond the licence or after termination is infringement.
Competition Act, 2002 · Section 3(4)Exclusive territories and price controls are void only if they cause an appreciable adverse effect on competition — prices are kept as recommendations.
Indian Contract Act, 1872 · Section 27A non-compete cannot bind the franchisee after the agreement ends.
CGST Act, 2017GST is payable on the franchise fee and royalty, in addition to the amounts stated.

How to execute

Print on non-judicial stamp paper of the value your state requires (or e-stamp), then sign with witnesses.

Print on non-judicial stamp paper or an e-stamp certificate of the value prescribed by the Stamp Act of the state where it is signed — stamp duty varies by state. All signatories should initial every page and sign before two witnesses. Keep the franchise operations manual as a separate confidential document referred to in the agreement.

Click anywhere in the letter to edit it. Changes to the form keep flowing in.

This is a general template, not legal advice. Laws, stamp duty and procedures vary by state and change over time — have a qualified advocate review it for your facts before signing or sending.