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We at Vakilsearch are here to provide you with the guidance and assistance you need for your perfect franchise agreement.
This agreement lets an organization lend their Intellectual properties to help you pursue business
under the same brand name covering all conditions.
Our platform connects you to highly rated lawyers
Step 1
The first draft will be shared with you in four days
Step 2
Two rounds of iterations at no extra cost
Step 3
Franchising is the practice where the business owner of an enterprise or company (franchisor) consents to another individual (franchisee) carrying out their own business under the title/brand name of the franchisor. In such a relationship, the franchisor offers their tools of business, technical know-how, intellectual property, and training to the franchisee. The franchisee applies the above and aims to profit both the franchisor and the franchisee. It is a profitable business model that allows domestic business persons to carry out successful foreign businesses within their country.
However, franchising is not an easy task as it requires a great deal of planning, negotiation, drafting, and agreements between the franchisor and the franchisee. The mutually understood terms that both parties reach leads to the formation of 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. Hence, it is important to be thorough with your franchise agreement so that the benefits out of such relationships are balanced.
We at Vakilsearch aim to provide cost-effective and thorough assistance that will make the setting up of your franchise business easy.
An ideal franchise agreement should include the following clauses:
The detailed relationship of both the members is included in this clause. It is the first detail included in the franchise agreement draft.
This is the duration of the relationship between the franchisee and the franchisor. It is that period where the franchisee is allowed to see under the name and the mark of the franchisor. This duration can be extended if both have the agreement of the same.
The amount and mode of payment for either is as per the discussions between the franchisee and the franchisor.
It is the location or territory within which the franchisee is allowed to operate the business. The burden of finding the location is on the franchisee. This location is subject to the approval of the franchisor.
This includes details as to how the franchisor expects the franchisee to run their business. Some of the areas they cover here will include:
This section of the agreement gives the franchisee the responsibility to market, advertise and other promotional activities.
It includes the use of the trademarks and intellectual property that the franchisor owns that the franchisee is allowed to use for the business operations.
The franchisor is responsible to provide required support and supervision to the franchisee. It is done to make sure that uniformity is maintained among all franchised businesses.
It includes the terms that mention detailed provisions related to the termination of the franchise agreement. It is related to those where either party fails to perform as per the terms mentioned in the agreement. It also mentions penalties in the event of a franchise agreement is terminated.
There are certain terms and clauses that make the franchise agreement a strong document. It is necessary to elaborate on all the ingredients and elements of a franchise agreement. If crucial details are overlooked it can affect the franchised business adversely. This is why the guidance of experienced professionals and legal experts is a necessity. Vakilsearch is a leading organisation that hosts legal experts who are trained to deliver a hassle-free experience for their clients. With the help of Vakilsearch, we will give you the best experience as we house experienced professionals with in-depth technical knowledge who will guide you at every step of the way. With service standards that are client-centred, reliable, and ethical, we will always be here to support you.
Note: For every issue or concern you may have, our experts will assess your situation and advise you on the best course of action.
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