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Franchise Agreement

At a glance

Price
₹1,499 · GST included
Stamp duty
Chargeable as an agreement.
Registration
Not registrable under the Registration Act, 1908 — it creates no interest in immovable property and is not on the s.17 list.
Witnesses
Not legally required for a document of this kind.

₹1,499

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

Guided questions, full draft on screen, download in Word.

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Also called

  • Franchise Deed
  • Franchisee Agreement
  • Business Format Franchise Agreement
  • Brand Licence and Franchise Agreement
  • Franchise Samjhauta
  • ਫਰੈਂਚਾਈਜ਼ੀ ਸਮਝੌਤਾ
  • फ्रेंचाइजी करार
  • Franchise Licence Agreement

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

Fill this one in
Why you need it

When you need it

A brand owner (Franchisor) letting another business (Franchisee) run an outlet in Punjab or Chandigarh under its brand, system and operating standards, in exchange for a franchise fee and ongoing royalty — a food and beverage outlet, a retail store, a salon, an education or services franchise. Fixes the territory or location, exclusivity, fees and royalty, sourcing and operating standards, training, the trademark licence, and what happens on termination. India has no dedicated franchise statute — this Agreement rests on the Indian Contract Act, 1872, the Trade Marks Act, 1999 for the brand licence, and general commercial law. Not for: a simple product distributorship with no brand-system licence or operating standards — use the Distributor/Dealership Agreement instead; or a one-off licence of a trademark with no ongoing business format — that is a separate trademark licence, narrower than this.

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Chargeable as an agreement. PUNJAB: Article 5, Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab; where no more specific sub-clause of Article 5 fits, the residuary rate under Article 5(c). Confirm the current figure with the Sub-Registrar or against the Department of Revenue, Rehabilitation and Disaster Management's published table at revenue.punjab.gov.in before the stamp is bought. CHANDIGARH: the equivalent agreement article under the Chandigarh Administration's Rates of Stamp Duty & Registration Fees table at revenue.chd.gov.in; confirm the current figure at the Sub-Registrar's office, 30 Bays Building, before the stamp is bought. BOTH: e-stamp before execution.

Registration

Not registrable under the Registration Act, 1908 — it creates no interest in immovable property and is not on the s.17 list. Separately, recording the Franchisee as a "registered user" or "permitted user" of the trademark with the Trade Marks Registry under section 49 of the Trade Marks Act, 1999 is optional, not compulsory, since the 2003 amendment to that Act, but is commonly done to put third parties on notice of the licence and to help show the Franchisor has exercised quality control, which matters if the mark's validity is ever challenged for naked licensing.

Notarisation

Not legally required. Notarisation is sometimes done to fix the date the franchise relationship began, which can matter for computing the term and any post-termination restraint period.

Witnesses

Not legally required for a document of this kind. Two witnesses are optional and not asked for by this template; add them if either party wants the extra evidentiary comfort.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

Sample preview — placeholder answers, not your data

FRANCHISE AGREEMENT

This Franchise Agreement (this "Agreement") is made at Chandigarh on 1 April 2026.

BETWEEN

Northline Foods Private Limited, an individual, of Plot No. 8, Phase 8-B, Industrial Area, S.A.S. Nagar (Mohali) 160055, acting through Rohit Nair, Director (the "Franchisor");

AND

Bansal Fresh Foods, an individual, of Shop No. 22, Sector 22-C, Chandigarh 160022, acting through Kavita Bansal, Proprietor (the "Franchisee").

The Franchisor and the Franchisee are each a "Party" and together the "Parties".

RECITALS

A. The Franchisor owns, or has the right to license, the brand "Northline Kitchen" (Registered trademark no. 4567890 in Class 43, Trade Marks Registry, Delhi) and an associated business system.

B. A quick-service restaurant outlet serving the Franchisor's standard menu, using the Franchisor's recipes, décor, signage and point-of-sale system.

C. The Franchisee wishes to operate an outlet under that brand and system, on the terms of this Agreement.

NOW THIS AGREEMENT WITNESSES AS FOLLOWS.

  1. GRANT

1.1 The Franchisor grants to the Franchisee, for the Term, the right to operate an outlet at SCO 45, Sector 34-A, Chandigarh 160022 (the "Outlet") under the brand "Northline Kitchen" and the business system described in Recital B, subject to this Agreement.

1.2 Exclusive — the Franchisor shall not grant another franchise for the same brand, or itself operate under that brand, within the Territory during the Term

1.3 The territory of this franchise is: The outlet at the address above; no wider territorial protection is granted. (the "Territory").

  1. TRADEMARK LICENCE

2.1 The Franchisor licenses the Franchisee to use the brand "Northline Kitchen" and its associated marks, signage and get-up solely in connection with the Outlet and strictly in accordance with the Franchisor's brand guidelines and the operating standards stated in clause 6. This licence is non-transferable and ends automatically on termination or expiry of this Agreement.

2.2 The Franchisee acknowledges the Franchisor's ownership of the brand and associated marks, shall do nothing inconsistent with that ownership, and shall not register or attempt to register any mark, domain name or business name confusingly similar to it.

2.3 The Franchisor may exercise reasonable quality control over the Franchisee's use of the brand, including inspection of the Outlet, to protect the validity and reputation of the marks.

  1. FEES

3.1 The Franchisee shall pay the Franchisor a one-time franchise fee of ₹5,00,000 (Rupees Five Lakh only) on execution of this Agreement, which is earned on payment and is not refundable except as this Agreement expressly provides.

3.2 The Franchisee shall pay the Franchisor an ongoing royalty of a percentage of Gross Revenue, as stated below, payable monthly

3.3 That percentage is 6% of Gross Revenue. "Gross Revenue" means all revenue earned at or through the Outlet, before deduction of any expense, but excluding sales tax, goods and services tax and other taxes collected on behalf of the government.

3.5 The Franchisee shall additionally contribute 2% of Gross Revenue to a common advertising and marketing fund maintained by the Franchisor, applied for the benefit of the brand's outlets generally.

3.6 The Franchisee shall pay the Franchisor a refundable security deposit of ₹1,00,000 (Rupees One Lakh only), held as security for the Franchisee's obligations and refundable, without interest, within sixty days of the end of the Term, after adjusting any amount due from the Franchisee.

What this document is for

A brand owner in Punjab or Chandigarh who wants another business to run an outlet under its name, system and standards — a food outlet, a retail store, a salon, a services franchise — uses this to fix the location and territory, the franchise fee and ongoing royalty, sourcing and operating standards, training, and what happens when the franchise ends.

The Franchisee runs the outlet as its own independent business, at its own cost and risk, under a trademark licence rather than as the Franchisor's employee or agent. This Agreement grants that licence and sets the standards that come with using the brand, and nothing more.

Before you use this — India has no franchise-specific law, and this Agreement rests on ordinary contract and trademark law instead

Unlike some countries, India has no dedicated franchise statute and no mandatory pre-contract disclosure regime — what protects each side is the Indian Contract Act, 1872, the Trade Marks Act, 1999 for the brand licence, and general commercial law, applied to whatever this Agreement actually says. That also means a restraint stopping the Franchisee from running a similar business once the franchise ends is not guaranteed to be enforced: section 27 of the Indian Contract Act, 1872 voids a broad restraint of trade, Indian case law on franchise non-competes specifically is thin, and the narrower the restraint, the more likely it is to hold.

Stamp paper and registration

Stamp paper needed

Yes

Typical stamp duty — Punjab

Ask us — Chargeable under the residuary agreement rate, Article 5(c) of Schedule I-A — this Agreement's own drafting note gives the article, not a rupee figure, because the table moves. Confirm the current figure with the Sub-Registrar or against the Department of Revenue, Rehabilitation and Disaster Management's published table before the stamp is bought.

Typical stamp duty — Chandigarh

Ask us — The equivalent agreement article applies, with the same gap. Confirm at the Sub-Registrar's office, 30 Bays Building, before the stamp is bought.

Registration at the Sub-Registrar

No — Not registrable under the Registration Act, 1908. Separately, recording the Franchisee as a registered or permitted user of the trademark with the Trade Marks Registry is optional, not compulsory — commonly done anyway to put third parties on notice and to help show the brand is under real quality control.

Notary or witnesses

Not required by law. Two witnesses are optional and not asked for by this template. Notarisation is sometimes done anyway, to fix the date the franchise relationship actually began, useful for computing the term and any post-termination restraint period.

What you will need before you start

  • The brand or trademark being franchised, and its registration details if it is registered
  • What exactly is being franchised — the product or service and the business system behind it
  • The outlet's address, the territory covered, and whether the franchise is exclusive within it
  • The one-time franchise fee and the ongoing royalty basis — a percentage of revenue, or a fixed monthly amount
  • The operating standards the Franchisee must follow, and the sourcing rule for key inputs
  • The term, renewal terms, and any restraint on the Franchisee competing after the franchise ends

Common mistakes

  • Assuming a post-termination non-compete clause will simply be enforced because it is written down — a broad restraint risks being struck down under section 27 of the Indian Contract Act, 1872, and only a narrow one tied to the actual system has a realistic chance.
  • Requiring sourcing only from the Franchisor or its approved suppliers with no genuine quality-control reason on file — that can be questioned as an anti-competitive vertical restraint under the Competition Act, 2002 if it forecloses the market without justification.
  • Letting pre-contract sales material promise more than the Agreement and the operations manual actually deliver — India has no franchise disclosure statute, but an inflated pitch can still found a misrepresentation claim under the Indian Contract Act, 1872.

Questions people ask before using this document

Is there a law in India specifically governing franchise agreements?

No — India has no dedicated franchise statute and no mandatory disclosure regime the way some other countries do. A franchise relationship here is governed by ordinary contract law under the Indian Contract Act, 1872, by the Trade Marks Act, 1999 for the brand licence, and by general commercial law, all applied to what this Agreement itself says.

Can the Franchisor stop the Franchisee from running a similar outlet after the franchise ends?

Only within limits. Section 27 of the Indian Contract Act, 1872 voids a broad restraint of trade, so this Agreement restrains the Franchisee narrowly — tied to imitating the Franchisor's own system, within the Territory, for a stated period — rather than a wide ban on operating in the same line of business. Even a narrow restraint of this kind is not guaranteed to be enforced, since Indian case law on franchise non-competes specifically is thin.

Does the Franchisee have to buy stock only from the Franchisor?

Depends which option is chosen when the Agreement is filled in — the Franchisee can be tied to the Franchisor and its approved suppliers for key inputs, or left free to source from any supplier that meets the specification in the operations manual. Tying sourcing to the Franchisor protects consistency but should rest on a genuine quality-control reason, since an unjustified tie-in can be questioned as an anti-competitive vertical restraint under the Competition Act, 2002.

How much stamp duty does a Franchise Agreement attract in Punjab and Chandigarh?

The residuary agreement article applies in both places, but neither this Agreement's own source nor a current dated table fixes a rupee figure. Confirm with the Sub-Registrar, or against the two revenue departments' published tables, before the stamp is bought.

Is the Franchisee the Franchisor's agent or employee?

No. The Franchisee operates the outlet as an independent business, at its own cost and risk, responsible for its own staff, licences and taxes. This Agreement says in terms that nothing in it creates a partnership, agency or employment relationship, and the Franchisee has no authority to bind the Franchisor.

Related documents, and when you would need them

Questions about this document

Does the Franchise Agreement need stamp paper or stamp duty in Punjab and Chandigarh?

Chargeable as an agreement.

PUNJAB: Article 5, Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab; where no more specific sub-clause of Article 5 fits, the residuary rate under Article 5(c). Confirm the current figure with the Sub-Registrar or against the Department of Revenue, Rehabilitation and Disaster Management's published table at revenue.punjab.gov.in before the stamp is bought.

CHANDIGARH: the equivalent agreement article under the Chandigarh Administration's Rates of Stamp Duty & Registration Fees table at revenue.chd.gov.in; confirm the current figure at the Sub-Registrar's office, 30 Bays Building, before the stamp is bought.

BOTH: e-stamp before execution.

Does the Franchise Agreement need registration in Punjab and Chandigarh?

Not registrable under the Registration Act, 1908 — it creates no interest in immovable property and is not on the s.17 list. Separately, recording the Franchisee as a "registered user" or "permitted user" of the trademark with the Trade Marks Registry under section 49 of the Trade Marks Act, 1999 is optional, not compulsory, since the 2003 amendment to that Act, but is commonly done to put third parties on notice of the licence and to help show the Franchisor has exercised quality control, which matters if the mark's validity is ever challenged for naked licensing.

What does the Franchise Agreement cost on Kaagazaat?

₹1,499, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

Does the Franchise Agreement need witnesses?

Not legally required for a document of this kind. Two witnesses are optional and not asked for by this template; add them if either party wants the extra evidentiary comfort.

Often needed with this document

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