Franchise Agreement is an agreement signed between a Franchisor and a franchisee when the latter wants to work with a particular franchise.
In India, a draft of a Franchise Agreement is created first after considering all the laws related to franchising in the country such as Taxation laws, Consumer Protection Act, etc. Therefore, a good lawyer who has an experience of working with the franchise business earlier should be hired to draft a template that includes all the terms and conditions, financial arrangements such as Franchise fee, royalty fee, marketing fee, etc. after going through the laws for the franchise business.
The following considerations should be taken into account by Indian investors -: