Franchise Agreement
Franchise agreements — brand licence, territory, fees and royalties, standards, training, audits, IP protection and exit.
- Estimate Cost
- ₹15,000 – ₹1,00,000
- Typical duration
- 10 days
Service overview
Structuring and drafting commercial franchise contracts defining the legal relationship, brand usage rights, and operational obligations between franchisor and franchisee.
Who needs it? / When is it needed?
Brands, expanding businesses, and entrepreneurs entering into franchise business models.
What to expect from the WCP Professionals
In-depth legal drafting covering territory rights, royalty structures, operational guidelines, and brand protection clauses.
Key deliverables
Comprehensive Franchise Agreement draft, fee structure schedule, and operational compliance checklist.
Standard turnaround time
3 to 5 working days.
Government fees, timelines & key outcomes
No government fee for drafting; stamp duty at the State rate applies on execution.
Franchise fees and royalties attract GST, generally at 18%, and TDS where applicable; a foreign franchisor's royalty is also subject to FEMA and withholding tax, with relief under any applicable tax treaty.
Key outcomes: a franchise model with protected brand and IP and clear economics for both sides.
Forms & filings involved
- No franchise registration is required in India
- Recordal of the trademark licence with the Trade Marks Registry (optional but useful)
- GST registration of both parties and invoicing of fees and royalties
- FEMA compliance for payments to a foreign franchisor
Documents required
- Trademark registration or application of the brand
- Operations manual and brand standards
- Fee, royalty and marketing-contribution structure
- Territory definition and development schedule
- Franchisee's business and KYC details
What we need from you
Clear commercial expectations, investment amounts, brand standards, and geographic limitations.
Important conditions
Subject to valid intellectual property ownership and adherence to commercial laws.
Additional information
India has no franchise-specific law, so the agreement itself carries the full burden of defining rights — territory, standards, audit rights, IP use, non-solicitation and post-termination de-branding.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
Is there a franchise law in India?
No specific franchise law exists; franchising is governed by the Contract Act, trademark law, tax law and FEMA, so the agreement is critical.
Is GST payable on franchise fees?
Yes. Franchise fees and royalties are taxable services, generally at 18% GST.
Should the brand be registered before franchising?
Yes. A registered trademark protects the brand and makes the licence to franchisees enforceable.
What happens when a franchise ends?
The agreement should require de-branding, return of manuals and data, and settle any outstanding fees.