Document background
The Restaurant Sale Agreement is a crucial legal instrument used in India when transferring the ownership of a restaurant business from one party to another. This document is essential for transactions involving the sale of both standalone restaurants and franchise operations, ensuring compliance with Indian central and state legislation including the Food Safety and Standards Act, 2006, various business transfer regulations, and local licensing requirements. The agreement comprehensively covers the transfer of physical assets, intellectual property, operational licenses, employee contracts, and business goodwill. It's particularly important in the Indian context where multiple regulatory bodies oversee restaurant operations, and specific state-level compliances must be maintained during ownership transfer. The document protects both parties' interests by clearly defining the terms of sale, payment conditions, representations and warranties, and post-closing obligations.
