What is a Franchise Agreement
A franchise agreement India is a contract where a business person consents to grant the enterprise name or company system to an individual or an entity (the franchisee). The franchise agreement format will characterize the foundation of the terms between both the consenting groups, define the remuneration for the franchisee (payment in the way of royalties, for the usage of the business trademark, etc), mention conditions upon the usage of the brand name, specify the extent of the agreement, mention terms concerning disciplinary provisions (varying from financial penalty and allowances to withdrawal of the business franchise and the contract) and so on.
What are the benefits of a franchise agreement?
Certain benefits of a franchise agreement India are mentioned below-
Defines The Guidelines
A franchise agreement permits the businessman (who is franchising his company) to define guidelines for the maintenance of quality related to different facets of the trade before onboarding the client and binding them in a franchise contract.
Brand Management
With a franchise agreement format in place, the franchisor can set guidelines for how the franchisee adopts the business and branding. Also, the penalties for mismanagement or violation of the business branding are defined in the agreement to protect the brand name at all times.
What is the process of preparing a franchise agreement at Vakilsearch?
3- Business Days
Upon contact, your request to prepare a franchise agreement will be received and our representative will be in touch with you to take your request forward. If we need more information from your end, we will call you as and when required. After we receive all your details, our in-house lawyers and legal experts, will create the franchise agreement draft and send it across for your view within 2- 4 business days.
2- Business Days
Your original price includes two rounds of iterations. Therefore, if you need any changes done to the franchise agreement sample, our lawyers will do the needful and send it across to you for your approval once again.
Documents required for Franchise Agreement
In India,Franchise Agreement cannot be done without proper identity and address proof. These documents will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process acceptable.
Identity And Address Proof
- Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
- Scanned copy of Voter’s ID/Passport/Driver’s License
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned passport-sized photograph specimen signature (blank document with signature [directors only])
For the foreign nationals, an apostilled or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.
Registered Office Proof
For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, a recent copy of an electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned copy of Notarized rental agreement in English
- Scanned copy of No-objection certificate from the property owner
- Scanned copy of sale deed/property deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence too.
