FRANCHISE AGREEMENT
The franchise agreement document specifies the guidelines and policies around every aspect of the franchisor-franchisee relationship. The franchise agreement is a legally binding document in which your franchisees are granted rights to use your brand, intellectual property and systems for a specified period. The franchise agreement must be carefully constructed so that you are able to fully deliver on your franchising strategy, while also being flexible enough to accommodate a dynamic and changing business environment.  This balance can be difficult to achieve, and in fact franchising is one of the most complex business models to execute successfully. Our experienced franchise lawyers will work with you to create franchise agreements that meet your needs and are also fully compliant with the Franchising Code of Conduct.

It is extremely important that you understand the Indian franchising deeply. There is no specific franchising legislation or franchise law in India.  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 Labour Laws, Transfer Of Property Act 1882, Foreign Exchange Management Act 1999, The Designs Act 2000, The Patents Act 1970, The Copy Right Act 2013 are considered while creating an effective franchise agreement in India.

The implementation of GST in July 2017 has eased some portion of the franchise rules and regulations in India.  The ongoing taxation reforms have resulted in a more uniform tax structure. There is greater clarity on payments of royalty, franchise fees and other charges and removal of incidences of duplication of taxation. This was affecting the franchise systems on various counts. All tax payments and statutory filings have become online with strict timelines. These are just a few things that you will have to structure and integrate correctly whilst you are planning to set the franchise terms and conditions agreement. International companies looking to adapt their Master Franchise Agreements in India could look at the above developments positively. Franchise agreement is ‘‘compulsorily’’ required, to be able to offer your franchise in India.


Creating and understanding Franchise Agreement

Your franchise agreement must be specially tailored to suit your individual business requirements. Your business is unique, and you have your own systems and processes to ensure efficiency and consistency. This must be communicated clearly to every franchisee, so you can  continue delivering on your promises to franchisees and customers.

There is a high level of leakage, across layers.  We help the franchisor to plug these leakages, at the earliest. With this knowledge and understanding, we protect our clients and make franchising work for them.  It is important to create the right franchise strategy, documentation, training programs and other support system at the initial stage, with the assistance from experts. Franchising is like that tip of the ice-berg, which to most people externally seems beautiful. Internally, you need to have a very strong base, to be able to support the majestic tip on the top.

At Franchise Times, we believe strongly in creating your franchise model first. Once your franchise program is structured correctly, you go about creating a  strong legal document. It is then integrated with important terms and conditions, rights and obligations, customer service standards, provisions, terminations, etc. We discuss the roles and responsibilities on both sides and help the franchisor understand the limitations and advantages of working with franchises.


Registration of Franchise Agreement

Most businesses cannot be franchised in their original forms and have to be reconfigured at an early stage. They must blend into franchising and must have the potential to scale up quickly. Doing the entire business model with an experienced franchise consultant at this stage is an absolute compulsion to help you navigate the pitfalls of franchising, early. Once you have done this, you go about hiring specialized franchise lawyers in India, not before that. Franchise agreement in India is printed on legal stamp papers. They are bought from the respective state registrar office. Both parties sign the agreement in the presence of a witness.

It is advisable not to replicate your competitor or follow similar business. Your business is unique. The draft agreement template should factor your strengths, weakness, goals and franchise strategy. Do not, ever copy, any franchise agreement format, as that is the surest way to commit 100’s of mistakes at your end.
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the
franchise times
Marcus Kample
Designer at Monarc
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the
franchise times
Marcus Kample
Designer at Monarc
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the
franchise times
Marcus Kample
Designer at Monarc
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