Franchise Agreement (India)
This template is a Franchise Agreement designed for a company to appoint an agent to operate a retail outlet in India. It outlines the responsibilities for furnishing the premises, managing stock on a consignment basis, and the payment of sales commissions to the agent.
DRAFT OF FRANCHISE AGREEMENT
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About this template
What is this template?
This document is a formal contract for a business format franchise in the Indian market. It contains specific provisions for territory exclusivity and marketing fund contributions that are not found in standard distribution or agency agreements.
When should you use it?
Use this document when granting a third party the right to replicate an entire business system under your brand name. If you are only selling goods to a middleman for resale, use a Distribution Agreement instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 2.1 | Grant of Franchise | Grants the Franchisee the right to operate the business and use the Intellectual Property within the specified Territory. |
| Clause 5 | Fees and Royalties | Specifies the initial franchise fee and the monthly royalty percentage based on gross sales. |
| Clause 8 | Operational Standards | Obliges the Franchisee to adhere to the manual's specifications for uniforms, decor, and service quality. |
| Clause 10 | Marketing and Advertising | Requires a contribution to the national marketing fund and mandates approval for all local promotional materials. |
| 15.2 | Termination for Cause | Permits the Franchisor to terminate the agreement immediately if the Franchisee fails to pay fees for 30 consecutive days. |
Who it's for
- an Indian company seeking to license its brand and business model to local operators
- an entrepreneur in India acquiring rights to operate a business under an established trademark
- a business owner expanding their retail presence through a third-party operated franchise model
How long it runs and how it's signed
Law it's drafted under
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