Franchise Agreement

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Franchise Agreement


This Franchisor Agreement (here in after termed as “Agreement”) is made and entered into this [date] (here in after termed as “Said Date”) by and between [name] with its principal place of business located at [address] (the “Franchisor”) and [name] with its principal place of business located at [name] (the “Franchisee”).

 WHEREAS, the Franchisor is undergoing the business of [description of business] and has the owner ship of trade mark of [trademark details with registration details].

WHEREAS, the Franchisor has now decided to lease out the trade mark and business system owner by him/her to the franchisee on the payment of royalty

WHEREAS, the Franchisee desires to establish a _________ franchise at [location] by using the leased trademark and business system of the franchisor;


NOW, THEREFORE, the Parties hereby agree as follows:

  1. The franchisor shall lease out the trade mark and business system to the use of franchisee on [date] and shall terminate the franchise on [date]
  2. The business of franchisee shall [commencement period], and shall terminate by [termination period]
  3. As a consideration the franchisee has to pay a royalty amount of [amount of royalty] every [time of payment] through [mode of payment].
  4. The cost of processing the franchise is [cost of processing] shall be bared by the franchisee.
  5. The original ownership of the trademark or trade name shall vest with the franchisor and the franchisee is only authorised to possess or use the trademark for the purpose of their business.
  6. In case [circumstances for cancellation] the parties can cancel the franchise by giving notice to the opposite party.
  7. [confidentiality clause]
  8. In case of any dispute the parties shall call for an arbitration [or mention other remedy you choose for] before approaching the court of law.
  9.  The parties are free to renew the agreement or modify it with mutual consent.
  10. [other terms and conditions]



NOW WHEREAS, this agreement has been on the date set forth herein in two (2) copies of which each Parties have taken.


For……………………………………                                                  For…………………………………





Authorized Signature                                                                Authorized Signature



Witness 1                                                                             Witness 1


Name:                                                                                    Name:


Address:                                                                                Address:


Signature:                                                                             Signature:



Witness 2                                                                             Witness 2


Name:                                                                                    Name:


Address:                                                                                Address:


Signature:                                                                             Signature:


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The franchisor agreement is made between a franchisor with any other entity agreeing upon certain terms to authorize the entity to use the trademark or business of the franchisor on payment of consideration known as a royalty. The agreement describes the relationship between the parties and set down all terms and conditions that shall be a base for their future transactions.

eStartIndia is an online legal service platform where a team of expert legal professionals from India, offering a variety of legal services relating to all kinds of agreements, legal notices, negotiable instruments, company registrations, intellectual property, tax services, personal and property services.

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WHY CHOOSE eStartIndia?
This organization comprises of expert legal professionals, who use their expertise will draft an agreement of franchise that shall cover all the legal requirements and needs of the parties. The experience and the knowledge that our professionals hold can help you in including clauses in your agreement that shall effectively describe the relationship between the parties as well as avoid confusions or difficulties in the future.



  1. IMPROVES CLARITY: The agreement involves a detailed description of the nature of work and terms of lending the trade name and business of franchisor which negates the scope of doubts between the parties.
  2. GUARDS THE PARTIES: The parties express their will, rights, and duties in an agreement which reduces the scope of disputes between the parties in the future.
  3. PROOF: It acts as evidence that expresses the duties and rights which the parties have agreed on.
  4. SCOPE OF CONFIDENTIALITY: Agreement involves clauses that state the compliance with any confidentiality that the parties may prescribe in their contract.
  5. INTELLECTUAL PROPERTY RIGHTS: The ownership rights and usage rights of a trademark or trade name will be clearly distinguished in the franchisor agreement that will establish the rights of parties very clear.


  1. Name and details of parties.
  2. Date of contract.
  3. Nature of business.
  4. Term of the franchise.
  5. Cost of the franchise.
  6. Royalty and terms of payment.
  7. The remedy for infringement of rights or misuse of terms or non-compliance with the agreement.
  8. Circumstances for canceling the franchise.
  9. Conditions of usage of trade name or trademark.
  10. Confidentiality terms (if any).
  11. Dispute Resolution.



4999 /-

    Package Includes:

    • Drafting Franchise Agreement by Experienced Lawyers
    •  30-minute Intro Call by Lawyer+ Start to Finish Help + Drafting a Franchise Agreement

(Professional Fees)


What are the difference between franchiser and franchisee?

It describes the relationship between the franchisor and franchisee which shall avoid confusion in the future and also gives the right to parties to legally use the other in case of infringements.

Who are parties to a franchise agreement?

A franchisor who is the owner of trademark or business system and the franchisee who takes the trademark or business system for lease are the parties to franchisor agreement.

Why is oral franchisor agreement not sufficient?

The oral submissions are hard to prove before a court of law.

What is a royalty?

It is a consideration paid by a franchise to the franchisor for giving the former the right to use the trademark or business system of the latter.

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