Franchise Agreement

A Franchise Agreement is a legally binding contract under the Indian Contract Act, 1872, that governs the relationship between a franchisor and franchisee, outlining rights, obligations and operational terms for running a business under the franchisor’s brand in sectors like food, retail, hospitality or education. Stamped per the Stamp Act, 1899, it covers franchise fees, royalties, intellectual property (IP) protection (e.g., trademarks under Trade Marks Act, 1999), operational standards, territory and dispute resolution (e.g., arbitration under Arbitration Act, 1996). IP and brand value, as financial assets, enhance investor appeal and support expansion in startups or established chains. 

Novam Legal crafts tailored Franchise Agreements, ensuring compliance with the IT Act, 2000, for e-signing and providing post-execution support to enable seamless, dispute-free franchise growth and brand consistency. Here’s how a Franchise Agreement delivers value for your business:

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    Process Steps for a Franchise Agreement with Novam Legal

    Business Assessment

    We review your brand, expansion goals and operational guidelines (e.g., franchise model).

    Terms Structuring

    We define IP protection, fees, territory and arbitration terms for clarity.

    Custom Drafting

    We craft a tailored agreement with Stamp Act and Trade Marks Act compliance.

    Franchisor-Franchisee Review

    We refine the draft based on feedback, ensuring alignment for both parties.

    Execution and Support

    We offer optional e-signing coordination per IT Act, 2000, and renewal/dispute guidance on a paid basis.

    Benefits of a Franchise Agreement

    Operational Clarity

    Defined roles and standards ensure consistency, per Contract Act standards.

    IP Security

    Trademark clauses protect brand value, per Trade Marks Act, 1999.

    Legal Safeguards

    Arbitration and injunctions reduce risks, per Arbitration Act, 1996.

    Revenue Stability

    Royalties and fees provide steady income while maintaining brand control.

    Investor Appeal

    Compliant agreements signal governance, supporting fundraising or M&A.

    Prerequisites for Franchise Agreement

    Deliverables for a Franchise Agreement with Novam Legal

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    Basic

    11900

    • Company Name Precheck
    • Certificate of Incorporation
    • 1 DSC & 1 DIN
    • PAN & TAN
    • eMOA & eAOA
    • (1 Indian Director, 1 Shareholder and Authorised Capital of Rs. 1,00,000)

    Premium

    29900

    • Company Name Precheck
    • Certificate of Incorporation
    • Commencement of Business
    • 1 DSC & 1 DIN
    • PAN & TAN
    • eMOA & eAOA
    • GST Registration
    • (1 Indian Director, 1 Shareholder and Authorised Capital of Rs. 1,00,000)

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    Frequently asked Questions

    A Franchise Agreement is a legally binding contract under the Indian Contract Act, 1872, outlining terms for a franchisee to operate under a franchisor’s brand.

    It protects IP, ensures brand consistency, supports expansion and minimizes disputes, enhancing investor trust and revenue stability.

    Franchise fees, royalties, IP protection, territory, operational standards and arbitration clauses, per Indian Contract Act, 1872.



    Yes, when stamped per Stamp Act, 1899 and executed, it’s enforceable under the Indian Contract Act, 1872.

    Yes, stamp duty under the Stamp Act, 1899, varies by state to ensure legal enforceability in India.

    IP clauses safeguard trademarks and brand assets, per Trade Marks Act, 1999, preserving brand value.

    Breaches may lead to damages, injunctions or arbitration under the Indian Contract Act, 1872 and Arbitration Act, 1996.

    Yes, e-signing is valid under the IT Act, 2000, ensuring enforceability with proper execution and stamp duty.

    Novam Legal crafts industry-specific agreements with Contract Act-compliant IP and royalty clauses, tailored to your brand.

    Custom agreements ensure enforceability, protect brand value and reduce risks compared to generic templates.

    It provides standardized terms for franchisees, ensuring brand consistency and simplifying scaling, per Contract Act standards.

    Yes, with mutual consent and Novam Legal’s support, amendments comply with the Indian Contract Act, 1872.

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    What Our Clients Say

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    Vivek P.

    Seamless, Efficient, and Professional—That's NOVAM Legal!

    When I decided to incorporate my business, I was overwhelmed by the complexities of the process. NOVAM Legal made it incredibly easy. Their team guided me through every step, handled all the paperwork, and ensured everything was compliant. The entire process was smooth and efficient, saving me both time and stress. I couldn’t be happier with the level of professionalism and attention to detail they provided. I highly recommend NOVAM Legal to anyone looking to incorporate their business!

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    We were in the midst of preparing for a critical fundraising round, and NOVAM Legal’s business valuation service gave us the confidence and clarity we needed. Their team provided an accurate and detailed valuation that resonated with potential investors, helping us position our company effectively. The process was smooth, transparent, and tailored to our specific needs. Thanks to NOVAM Legal, we were able to secure the investment we needed to take our business to the next level. I highly recommend their services to any startup looking for professional support during fundraising.

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    Samar P. S.

    A stress-free, professional experience with NOVAM Legal!

    When I needed a critical business agreement drafted, NOVAM Legal delivered beyond my expectations. Their team was incredibly thorough, ensuring every clause was tailored to protect my interests while maintaining clarity and fairness. The level of detail and legal expertise they brought to the table was impressive, and they made sure to explain the complex legal terms in a way that was easy to understand. The entire process was seamless, and I felt confident knowing I had a well-crafted agreement in place. I would highly recommend NOVAM Legal to anyone in need of professional legal drafting services.

    Samar P. S.

    Freelancer
    Raj G.

    A stress-free, professional experience with NOVAM Legal!

    When I needed a critical business agreement drafted, NOVAM Legal delivered beyond my expectations. Their team was incredibly thorough, ensuring every clause was tailored to protect my interests while maintaining clarity and fairness. The level of detail and legal expertise they brought to the table was impressive, and they made sure to explain the complex legal terms in a way that was easy to understand. The entire process was seamless, and I felt confident knowing I had a well-crafted agreement in place. I would highly recommend NOVAM Legal to anyone in need of professional legal drafting services.

    Raj G.

    Founder & CEO, Xentrix Corp.

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