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Key Clauses in a Franchise Agreement in India

By Franchise Fee · Updated October 2026

Core commercial clauses

Check the grant of rights, territory, term and renewal, franchise fee, royalty, marketing contribution and any minimum purchase or sales targets.

Operating and legal clauses

Review training and support promises, supply and pricing rules, brand and trademark use, confidentiality, non-compete, dispute resolution and governing law. India has no single franchise statute, so agreements are governed mainly by the Indian Contract Act, 1872 and intellectual-property laws.

Exit and transfer

Understand termination triggers, notice periods, refund of deposits, transfer of the outlet and what happens to stock and equipment. Have a lawyer review the agreement before you sign.

This guide is general information, not legal or tax advice. Check current rules with a qualified professional.

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