How To Make Franchise Agreement Contract

How To Make Franchise Agreement Contract

An official contract that binds both the franchisor and the franchisee is known as a franchise agreement. So do you want to know how to make Franchise Agreement Contract in India?

In short, the contract outlines the franchisor’s requirements for the franchisee, including how the firm must be run. 

Furthermore, it is a contract in which the franchisor (firm) agrees to give the franchisee the right to use the brand name or business system (individual or entity).

What is the Regulatory Framework of a Franchise Agreement Contract?

The franchise agreements are not specifically governed by any one statute, but several statutory provisions do apply.

Below are a few of them – 

  • Indian Contract Act, 1872
  • Consumer Protection Act, 1986
  • Trade Marks Act, 1999
  • Copyright Act, 1957

Benefits of Franchise Agreement Contract

  • Defines the relationship between both the parties – franchiser and franchisee.
  • Provides better control to the franchiser.
  • Determines how the franchisee acquires the right of business and branding.

Are you ready to get started with your franchise agreement India preparation?

How to make a franchise agreement contract

Learn to form our decades of experience on how to make a complete Franchise Agreement contract.

These are the most common queries franchisors have whilst finding answers to how to franchise agreement works for your brand and setting the correct terms and conditions to ensure your franchise agreement contract meaning is met.

  • How to prepare a franchise agreement that works for your business
  • How to create a franchise agreement relevant to India
  • How to draft a franchise agreement that is not too strict
  • How to write a franchise agreement that is simple and easy to understand
  • How to negotiate a franchise agreement and its terms with franchisees
  • How to review a franchise agreement concerning the changing nature of your business and markets
  • How to end a franchise agreement with non-performing franchisees
  • How to terminate a franchise agreement and enforce post-termination clauses including but not limited to non-competition clauses
  • How does a franchise agreement work in case of wilfully defaulting franchisees

The Franchise Agreement and Management Contract is the most important document between the Franchisor and Franchisee. With the help of the franchise agreement, the franchisor can protect his business and its functionality. The franchise agreement varies from industry to industry and business to business.

Two Types Of franchise Agreements 

The most common types of the franchise agreement in India are: 

  • Based on the format: they are further divided into the basis of – Product or Distribution franchise, manufacturing, production and processing franchise and business format franchising.
  • On control: which is – Direct franchising, a master franchise agreement and international franchising

There can be various types of agreements related to the field of business. From Travel Franchise Agreements, Retail Store Franchise Agreements, Food Franchise Agreements etc. 

Each needs to cover its industry-related aspects comprehensively. It is therefore important to have the Contents of the Franchise Agreement ready and verified by an experienced Franchise Manager.

How and When to Prepare Franchise Agreement Contract?

Over the last two decades, we have built competitive intelligence and ground-level understanding. There is a high level of leakage, across layers.  We help the franchisor plug these leakages, as the earliest. 

With this knowledge and understanding, we protect our clients and make franchising work for them. We have helped our clients with a wide range of services that cover the entire gamut of franchising. 

Most importantly, we know what you must not do and ensure that we safeguard you from costly mistakes.

Why Choose Sparkleminds for your Franchise Agreement Contract?

Several business owners in a bid to start franchising quickly, provide P&L sheets, ROI Plans, and a basic agreement to prospective franchisees. They feel that these franchise disclosure documents are sufficient to start and a simple franchise terms and conditions agreement drafted by any lawyer is sufficient. 

They recruit a few franchises quickly as their business or brand is attractive. This is where things begin to fail.  It is important to create the right franchise strategy, documentation, training programs, and another support system at the initial stage only to avoid consequences later, with assistance from experts.

Franchising is like the tip of the iceberg, which to most people externally seems beautiful. Internally, you need to have a very strong base, to be able to support the majestic tip on the top.

Franchise Model Requirements

At Sparkleminds, we believe strongly in creating your franchise model first. Once your franchise program is in tact, you go about creating a strong legal document. It is then sync with important terms and conditions, rights and obligations, customer service standards, provisions, terminations, etc.

We discuss the roles and responsibilities on both sides and help the franchisor understand the limitations and advantages of working with franchises. The creation of the right Franchise Agreement Format happens when you undergo this exercise properly. It is possible in 7 Days, in case you already have a few franchises ready to sign up.

Create Your Draft Franchise Agreements, Manuals and Other Documentation from the experts. Ensure that you have everything in place while you Franchise Your Business to Protect it.

Understanding all of these is a hindrance for any layman, here, we at Sparkleminds come into the picture and help you understand which is the aptest franchise agreement for your business and how to go about developing it. 


A franchisor should be educated on the laws that directly/indirectly play a role in your franchise functionalities. With the team of experts at Sparkleminds, we guide you in understanding the importance of – the Indian Contact Act, of 1872, the Foreign Exchange Management Act, of 1999, Intellectual Property Laws, Taxation Laws and more. 

There are a lot more intricacies a franchisor has to encounter while looking at expanding via the franchise model and how certain laws play an important role in giving out franchises to prospective franchise buyers. 

Fret Not! Experts at Sparkleminds are there for your support throughout the timeline. With experts from Sparkleminds, we can work out an exclusive franchise agreement for your business that is as unique as others. 

We have been doing this for over the years and we exactly know the type of franchise agreemen contract you would require for your business.  Don’t be late, contact us today.