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Franchise Agreement

ફ્રેન્ચાઇઝ કરાર

The right to operate under someone else\u2019s brand and system. A long document where the exit terms matter more than the entry terms.

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What a franchise agreement allocates

  • Territory — exclusive, non-exclusive, or protected radius, and what the franchisor may do inside it, including online sales into the territory.
  • Fees — the initial fee, ongoing royalty, marketing contribution, and what each is calculated on.
  • Brand standards and control — how the outlet must look and operate, and the audit rights that enforce it.
  • Supply — whether the franchisee must buy from the franchisor or approved suppliers, and on what pricing.
  • Training and support, and what happens if it is not provided.
  • Term, renewal and the conditions on renewal.
  • Transfer — whether the franchisee may sell the business, and the franchisor's rights of consent or first refusal.
  • Termination and what follows — de-branding, return of materials, and any restriction on continuing a similar business.
Read the exit terms before the entry terms.

Prospective franchisees concentrate on the fee and the territory. The clauses that decide whether the investment is recoverable are the ones about transfer, renewal and termination — whether you can sell the business you have built, whether renewal is at the franchisor's discretion, and what you are left with if the agreement ends. Post-term restraints on continuing a similar business also run into section 27 of the Indian Contract Act.

On stamp duty.

We do not publish duty figures on this website. The Gujarat Stamp Act, 1958 was amended in 2025 and several articles were restructured; a rate printed on a web page goes stale and costs somebody money. As a Government authorised e-Stamping centre we confirm the duty currently prescribed for your specific document and issue the e-stamp against it, at face value. The notarial fee is separate and capped by law — ₹35 to attest execution, ₹35 to administer an oath or take an affidavit, under Rule 10(1) of the Notaries Rules, 1956. The full fee table →

Drafted here, in Gujarati or English

Drafted by an advocate of 35+ years rather than filled into a downloaded template, e-stamped at a Government authorised centre, and notarised in the same visit. If the parties read Gujarati, the document is drafted in Gujarati — not translated out of an English form, because legal Gujarati has its own settled vocabulary and a literal translation frequently means something looser.

What to bring

  • The franchisor's draft agreement and disclosure material
  • Details of the territory and outlet location
  • The fee structure and any projections given to you
  • Trade mark registration details for the brand
  • Constitution documents for both parties

Related

Common questions

I have been given the franchisor's standard agreement. Is it negotiable?

Parts of it usually are — territory protection, renewal terms, transfer consent and the personal guarantee are the ones most often moved. The brand standards rarely are, and should not be. It is worth having the document read before you sign rather than after.

Can the franchisor stop me selling my outlet?

That depends on the transfer clause. Many agreements require consent, and some give the franchisor a right of first refusal. If the ability to exit matters to you — and it should — that clause deserves attention before signing.

Is a post-termination non-compete enforceable against a franchisee?

It faces the same difficulty as any restraint of trade under section 27 of the Indian Contract Act, 1872. Restrictions on continuing to use the brand, the system and confidential material stand on much stronger ground than a blanket bar on operating a similar business.

Not sure which document you need?

Tell us what the office, bank or court asked for. We will name the exact document, the stamp value and whether notarisation is enough — before you pay anything.

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