Franchise agreement
Running an outlet under someone else's brand: territory, brand use, fee and royalty, supplies and standards, training, term, renewal and exit.
Opens Dastavo with this paper ready to fill, on this computer or in the app. No account needed.
iPhone and iPad: coming to the App Store · Android: coming to Google Play
Not yet reviewed by a lawyer. Check every line before it is signed.
How the paper begins
With Dastavo's sample details; the people and places are fictional. The words in blue are the ones you fill in.
FRANCHISE AGREEMENT
This Franchise Agreement is made at Amarnagar on 12 October 2026 between Amar Chai Private Limited (CIN U00000PB2021PTC000000, registered office at Plot No. 21, Industrial Area, Amarnagar), acting through its authorised signatory Kabir Sharma son of Shri Dev Sharma, aged about 44 years, resident of House No. 7, Basant Vihar, Amarnagar, Tehsil and District Amarnagar, Punjab (the "Franchisor"), and Neha Verma wife of Shri Anil Verma, aged about 28 years, resident of House No. 204, Sector 9, Shantipur, District Shantipur, Haryana (the "Franchisee"). Each party includes its legal successors and permitted assigns.
WHEREAS the Franchisor carries on the business of running tea, snack and bakery cafés under the brand "Amar Chai" (registered trade mark No. 0000000 in class 43), with its own recipes or products, methods, standards and get-up (together the "System");
WHEREAS the Franchisee wishes to run an outlet under the brand and the System, and the Franchisor has agreed to this on the terms below;
NOW THE PARTIES AGREE as follows:
1.That the Franchisor grants the Franchisee the right to run one outlet under the brand and the System at Shop No. 14, Bus Stand Road, Kalyanpur (the "Outlet"), serving the municipal limits of Kalyanpur (the "Territory"). While this agreement lasts, the Franchisor shall not open, or allow anyone else to open, another outlet under the brand within the Territory. The Franchisee shall not open another outlet, or sell under the brand from any other place or online platform, without the Franchisor's written consent.
The rest of the paper is in Dastavo.
What to bring
Papers to bring
- For each party: identity proof and PAN; for a company, LLP or firm, its registration papers and the board resolution or authority letter of the person who signs
- The franchisor's trade mark registration certificate or application, and the brand manual or standards the agreement refers to
- Proof of the outlet premises (ownership papers or rent agreement) with its full address
- GST registration of both parties, and the agreed franchise fee, security deposit, royalty and training details
- Two witnesses, each with an identity proof
Where to go
Signed by both parties before two witnesses, usually on e-Stamp paper of the value the state fixes for an agreement; it is not usually registered. Many parties also get it attested by a Notary. Each party keeps a signed original.
Fee
The e-Stamp duty follows the state's schedule for agreements; ask the e-Stamp centre for today's amount.
Good to know
- Check that the brand's trade mark is registered or applied for in the franchisor's name before paying the fee.
- A ban on running a similar business can last only while the agreement runs; after it ends it cannot be enforced (section 27 of the Indian Contract Act). Keeping recipes and manuals secret continues.
- The outlet's licences (food safety, shop and establishment, trade licence) must be in the franchisee's own name.
- GST is payable on the fee and the royalty against tax invoices; keep the monthly sales statements and royalty receipts.
Papers and fees can change. Check with the office before you go. Guidance only, not yet reviewed by a lawyer.
Stamp paper
Deeds and agreements carry stamp duty that depends on the state, the document and its value; some must be registered with the Sub-Registrar. Check the current duty and registration rules before printing on stamp paper.