Franchise Agreement


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A Franchise Agreement is a legally binding contract between a franchisor (the owner of a trademarked business concept) and a franchisee (the indivi ...

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How to get a Franchise Agreement drafted

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Select Document

Choose your required Document

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Schedule Call with the Lawyer

Schedule Call and discuss with the Lawyer your Document drafting requirements


Get your Agreement Draft

Lawyer will deliver customized draft of the Document as per your requirement

Contents of a Franchise Agreement

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    Scope of the Franchise

    The Franchise Agreement lays down the nature of the business or project as agreed between the parties. It provides the franchisee the method of operations, along with a system of marketing to operate the franchise.

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    Usage of Intellectual Property Rights

    The Franchisee is granted permission in the agreement to use trademarks, logos, slogans associated with the franchise. The agreement outlines the usage and restrictions on advertising

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    Training and Ongoing Support

    The Franchisor has to provide training to the franchisee and their staff. The agreement also spells out details of administrative and technical support for the franchisee

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    Payment of Royalty

    The franchise agreement includes the details of royalty payment along with the payment structure. Royalty and ongoing fees are often paid by the franchisee on a monthly basis.

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    Locality and Territory of Operations

    The Franchise agreement outlines the territory in which the franchise will operate. The franchisee is granted permission to exclusivity rights

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    The Franchise agreement describes the grounds of termination of the contract. An arbitration clause is added if required to provide the parties legitimate legal recourse

Benefits of Franchise Agreement

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    Franchise Agreement minimizes the risk of disputes arising due to misinterpretation and helps the parties avoid litigation cost

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    Helps Franchisor protect the brand and product specifications and avoids misuse or misrepresentation of any nature

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    A well-drafted Franchise Agreement with all the relevant clauses provides better management of business relationships


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    Dedicated Lawyer Available

    60 Minutes of Talk time with the Lawyer for discussing requirements and changes in the draft

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    First Draft within 3 Days

    First draft of the Document will be delivered within a maximum of 3 working days

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    Finalize Document

    2/3 Iterations per Document allowed to incorporate your suggestions/changes

Frequently asked Questions

What is the importance of a Franchise Agreement?


A Franchise Agreement legally binds the Franchisor and Franchisee as terms and conditions are meticulously drafted and agreed. It also safeguards the Rights and Obligations of the parties.

Does a Franchise Agreement need to be registered?


As India does not have specific laws for Franchising so it is not mandatory to register a Franchise Agreement.

What are Post-term obligations?


The Franchisee owes few obligations toward the Franchise after the expiration or termination of agreement. Discontinuation of Trademark use is a Post term obligation.
Often Post term obligations can give rise to disputes and litigation. Careful drafting of the Franchise Agreement could minimize the risks arising from post term obligations.

What is the duration of a Franchise Agreement?


The Franchise Agreements are long term; duration of Franchise Agreement depends on the requirement of the parties. The typical duration of a Franchise Agreement is 10 years, but this can be mutually discussed and agreed.

I have a Franchise Agreement; how can I get it reviewed by a Lawyer?


ezyLegal can help you get your Franchise Agreement reviewed and provide you with the right legal guidance. You can upload your document and schedule your Consultation with an ezyLegal Lawyer.

What is the process of getting the Agreement drafted from ezyLegal?


ezyLegal offers Standard and Customised Document drafts. If you chose the Customised Document option, your call will be scheduled with a Lawyer to whom you can explain your specific requirements.

The first draft will be delivered within 2 working days and then you would be allowed 2 iterations to make changes in the draft.

How will the Document be delivered to me?


The Document when ready, will be available on the ezyLegal website ( in your secured Account. You will be notified on email and WhatsApp whenever a new version of the document is uploaded. You can Log-in and View or Download the document.

Copy of the final drafts will be available in your ezyLegal account forever.

What should be in a franchise agreement?


A franchise agreement is one legal document that is mutually agreed upon by the franchisor and the franchisee. It binds both of them into carrying out legal obligations for each other. An ideal franchise agreement includes various terms such as remuneration, timeline, conditions for usage of brand name, etc.

How important is franchise agreement?


This document legally forges the relationship between a franchisor and a franchisee. Without it, a lot of business-related threats, mishaps, and breaches could be committed both intentionally and inadvertently by all parties involved. The franchise agreement is what defines and details the franchise relationship.

What are the legal obligations of a franchise?


Within a franchise agreement the franchisee is granted the legal right to establish a franchised outlet after the site selection and its operation wherein the franchisee, among other things, obtains the license and right to utilize the franchisors trademarks, trade dress, business systems, operations manual and sources of supply in offering. 


Can you lose a franchise?


If a franchisor moves to close a franchise of an owner, it is probably because of a breach of this agreement. In fact, most franchise agreements include a clause that gives the franchise company the right to terminate it if the franchisee breaches the same provision more than twice within 12 months.

How do franchisees get paid?



In franchise business,a franchise owner makes money through profits received from sales and service transactions. This is generally the left over amount of money received from revenue after overhead costs are taken out.


Do franchise owners pay taxes?


Franchise taxes do not replace central and state tax laws so it’s not an income tax. These are levies that are paid in addition to income taxes. They are usually paid annually at the same time other taxes are due. The amount of franchise tax can differ greatly depending on the state laws and tax rules within each state.


How does a franchise operate ?


A small-business owner operates a franchise. In franchise system,the franchisee is required to pay a fee to the franchisor for the right to use the business’s already-established success, trademarks, and proprietary knowledge.The franchisee receives continuous guidance and support from the franchisor.


What is a initial franchise fee?


A initial franchise fee is an amount paid to enter into a franchise agreement. The franchise fee is paid by the franchisee to the franchisor.


What is a royalty fee?


Royalties are a percentage of the total revenue which is paid to the franchisor. Royalties can be paid either on a monthly or a yearly basis depending on the terms of the agreement.


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  • Ketan Shah

    We found them online. We were going to sign a Franchise Agreement, my business partner suggested we get the document reviewed so we approached ezyLegal, the service is super quick and they make it easy for a layman to understand the legalities of the document.
  • Akshita Sardesai

    If you are someone new to the business world like me, a little help with compliance and legal paperwork surely goes a long way. I recommend ezyLegal to get your Agreements drafted.
  • Shreyas Patel

    I scheduled a call with a legal expert to get a Franchise Agreement drafted. The consultant discussed my requirements in detail and provided the right draft and even advised me about potential risks.
  • Aditya Patel

    We used ezyLegal’s Document Review service to review our Franchise Agreement. The Lawyer was an expert in drafting Agreements. He pointed out a few important clauses. The entire process was easy and pleasant.

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