Exclusive Franchise Agreement Template for India

The Exclusive Franchise Agreement is a crucial document used when a business (franchisor) wishes to expand its operations by granting exclusive rights to another party (franchisee) to operate under its brand and business system within a defined territory in India. This agreement type is particularly important in the Indian market, where franchise businesses are rapidly growing and require clear legal frameworks. The document encompasses all essential aspects of the franchise relationship, including initial fees, ongoing royalties, territorial exclusivity, operational standards, training requirements, and brand usage guidelines. It must comply with Indian contract law, competition law, and intellectual property regulations while providing adequate protection for both parties. The agreement is typically long-term and requires careful consideration of various business aspects, making it essential for establishing successful franchise operations in the Indian market.

1. Parties: Identifies and provides full details of the franchisor and franchisee, including registered addresses and company registration numbers

2. Background: Describes the franchisor's business, ownership of the franchise system, and the franchisee's intention to operate under the franchise

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Grant of Franchise: Specifies the exclusive rights being granted, territory, and term of the franchise

5. Franchise Fees and Payments: Details initial franchise fees, ongoing royalties, advertising contributions, and payment terms

6. Franchisor's Obligations: Lists all obligations of the franchisor including training, support, and system maintenance

7. Franchisee's Obligations: Specifies all duties and responsibilities of the franchisee in operating the franchise

8. Operations Manual and System: References the operations manual and requires adherence to the franchise system

9. Intellectual Property Rights: Covers usage of trademarks, patents, copyright, and other IP owned by the franchisor

10. Training and Support: Details initial and ongoing training requirements and support services

11. Marketing and Advertising: Specifies marketing obligations, advertising fees, and approval processes

12. Quality Control: Establishes standards, inspection rights, and compliance requirements

13. Records and Reporting: Stipulates record-keeping requirements and reporting obligations

14. Insurance: Specifies required insurance coverage and minimum limits

15. Confidentiality: Protects confidential information and trade secrets

16. Non-Compete and Non-Solicitation: Restricts competitive activities during and after the agreement

17. Term and Renewal: Specifies initial term and conditions for renewal

18. Termination: Details grounds for termination and procedures

19. Post-Termination Obligations: Lists obligations after agreement ends

20. Dispute Resolution: Specifies procedures for resolving disputes including arbitration provisions

21. Governing Law: Establishes Indian law as governing law and jurisdiction

22. General Provisions: Includes standard boilerplate clauses like force majeure, notices, and assignment