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Franchise Agreement – Expertvuw
Contracts · Franchising

Franchise Agreement Drafting – Brand Licensing, Fees, Territory and Operating Standards

Last updated: 2 October 2026

A franchise agreement lets others run your business model under your brand while you keep control of quality. Expertvuw’s team drafts franchise agreements covering trademark licensing, fees, territory, training, audits and exit, for franchisors and franchisees.

Overview

What a Franchise Agreement Covers

India has no dedicated franchise law, so a franchise relationship is governed mainly by the Indian Contract Act, 1872, the Trade Marks Act, 1999 (for licensing the brand), the Copyright Act, 1957 (for manuals and materials), competition law, tax laws and — for foreign franchisors — FEMA rules on royalty payments.

A franchise agreement typically covers the grant of rights and territory, the initial franchise fee and ongoing royalties, the trademark licence and quality control, operating manuals and training, supply arrangements, marketing contributions, audits and reporting, term and renewal, termination events, and what happens after exit — de-branding, return of materials and confidentiality.

GST applies to franchise fees and royalties. Restrictive terms should be checked under the Competition Act, and post-termination non-competes need care because of section 27 of the Contract Act. Having your trademark registered before franchising is important.

Basis: Indian Contract Act, 1872; Trade Marks Act, 1999 (licensing and registered users); Copyright Act, 1957; Competition Act, 2002; CGST Act, 2017; FEMA for cross-border royalties. Last updated: 27 September 2026.

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What This Service Covers

What We Help With

1

Franchise agreement for franchisors or franchisees

2

Trademark licence and quality control clauses

3

Fee, royalty and GST structuring terms

4

Territory, exclusivity and performance targets

5

Termination, de-branding and dispute resolution

Key Facts

No specific law

Governed by contract, IP, competition, tax and FEMA laws.

Trademark

Register the brand before franchising.

GST

Franchise fees and royalties attract GST.

Quality control

Needed to keep the trademark licence valid and the brand consistent.

Non-competes

Post-termination restrictions need care under section 27.

Foreign franchisors

Royalty remittances follow FEMA and tax withholding rules.

Common Issues

Common Disputes

Franchise disputes usually concern money and exit.

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Related Services

Related services

Franchise agreements connect with these services.

Trademark Registration

Registering your brand first.

Trademark Assignment

Licensing and recording rights.

Distribution Agreement

Distribution arrangements.

Competition Law

Checking restrictive terms.

Documents Required

Documents we need from you

Franchisor Details

Franchisee Details

Our Process

How the Process Works

1

Brief

Understand the franchise model.

2

Structure

Agree fees, territory and term.

3

Draft

Prepare the agreement and licence terms.

4

Review

Parties review and negotiate.

5

Finalise

Stamp and sign.

6

Operate

Use the agreement for audits and renewals.

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After Signing

After Signing

Manage the franchise relationship actively.

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Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    Is there a franchise law in India?

    No specific law; franchising is governed by contract, trademark, copyright, competition, tax and FEMA laws.

    Yes. A registered trademark makes licensing and enforcement much stronger.

    Yes. Franchise fees and royalties attract GST.

    Post-termination non-competes need care under section 27 of the Contract Act; confidentiality and de-branding terms are enforceable.

    Yes, subject to FEMA rules and tax withholding.

    About Expertvuw

    Who Drafts Your Agreement

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    ACS – Director, Expertvuw Management Pvt Ltd

    Agreements and policies are drafted by Expertvuw’s team for your review and negotiation. Where you need a legal opinion, dispute advice or representation, it is provided by independent advocates. Expertvuw is a corporate services company, not a law firm.

    Expertvuw Management Pvt Ltd