Franchise agreements in India. Share your brand without losing it.

A franchise agreement is the contract under which a franchisor lets a franchisee trade under its brand and follow its system. It defines the whole relationship between the two. Define IPR Solutions drafts franchise agreements built around the trademark at their centre.

Get a free consultation See what it covers

Free consultation. Fees quoted before you commit to anything.

What goes into it

What a franchise agreement covers

Six areas decide whether a franchise works for both sides.

  • Operations

    How the outlet must be run, and the standards it has to meet.

  • Territory

    The site or region the franchisee may operate in, and whether it is exclusive.

  • Training and support

    What the franchisor provides to open the business and keep it running.

  • Fees and investment

    The franchise fee, the royalties and what the franchisee must invest.

  • Brand and IP

    How the franchisee may use the trademark, the signage and the know-how.

  • Term and exit

    How long it runs, how it is renewed and what happens when it ends.

A franchise is, at its core, a licence of your trademark. Register the mark before you franchise it.

Keeping it yours

What you get from Define IPR

  • Written around your business

    We start from how your business works, not from a generic template.

  • Clear where disputes start

    Payment, deadlines, ownership and how the arrangement ends are spelt out, not left to assumption.

  • Joined up with your IP

    Where a document touches your trademark, your content or your know-how, it is written to protect them.

What to settle before you sign

  • The trademark is registered, in the right classes.
  • Who owns improvements, recipes and local marketing material.
  • How quality is checked, and what happens when it slips.
  • What happens to stock, signage and customer data on exit.
  • What the franchisee may not do alongside the franchise.
  • Which law applies, and how disputes are resolved.

One thing to know

India has no single franchise law. A franchise rests on the Indian Contract Act, 1872 and the Trade Marks Act, 1999, so the agreement itself carries the weight.

How it gets written

From a conversation to a signed document

  1. 01 Brief

    Tell us about the arrangement

    Who is involved, what each side expects and what worries you most.

  2. 02 Draft

    We write the document

    A first draft built around your business and the points that matter in it.

  3. 03 Review

    You read, we revise

    We go through the draft with you, explain what each part does and make the changes you need.

  4. 04 Final

    Ready to sign

    You receive the final document, with a note on stamping and signing where they apply.

Before you decide

Franchise agreements, answered

What is a franchise agreement?

It is a contract in which a franchisor allows a franchisee to run a business under the franchisor's brand and system, in return for fees. It sets out what each side must do, for how long, and how the relationship ends.

Is there a franchise law in India?

No. India has no single franchise statute. Franchise arrangements are governed mainly by the Indian Contract Act, 1872 and the Trade Marks Act, 1999, alongside consumer and competition law.

Do I need a registered trademark to franchise my brand?

It is not a legal precondition, but it is the sensible first step. A franchise licenses your brand, and an unregistered brand is far harder to enforce against a franchisee or a copycat.

What fees does a franchisee usually pay?

Typically a one-time franchise fee and a continuing royalty, often set as a percentage of sales. Some franchisors also charge a marketing contribution. The agreement fixes each of them.

Can a franchisee run a competing business after the franchise ends?

The agreement can restrict competing during the term. Restrictions that continue after it ends are hard to enforce in India, because Section 27 of the Indian Contract Act, 1872 treats agreements in restraint of trade as void.

How much does a franchise agreement cost to draft?

It depends on the size of the network and how much of your system has to be written down. We quote the fee after a free consultation, before you commit to anything.

Last reviewed . This page is general information, not legal advice.

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