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The Agreement Between Franchisor And Franchisee is a critical legal document used when a business (franchisor) grants another party (franchisee) the right to operate under its established business system and brand. This agreement is essential in the Indian business landscape, where franchise businesses are rapidly growing across various sectors. The document must comply with Indian legislation, including the Franchise Act, 2022, Indian Contract Act, 1872, and other relevant laws. It typically includes detailed provisions about intellectual property rights, operational standards, territory rights, fees and royalties, training requirements, and quality control measures. This agreement is particularly important as it forms the foundation of the franchise relationship, protecting both parties' interests while ensuring consistent brand standards and business practices across the franchise network. It should be customized based on the specific business model, industry requirements, and operational complexities of the franchise system.

1. Parties: Identification and details of the Franchisor and Franchisee, including registered addresses and company registration numbers

2. Background: Context of the agreement, brief description of the franchise business, and the intention of the parties to enter into a franchise relationship

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Grant of Franchise: Specific rights being granted to the franchisee, including territory, exclusivity (if any), and term of the franchise

5. Franchise Fees and Payments: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms

6. Franchisor's Obligations: Duties of the franchisor including training, support, operations manual, and ongoing assistance

7. Franchisee's Obligations: Comprehensive list of franchisee's duties including compliance with operations manual, maintaining standards, and reporting requirements

8. Intellectual Property Rights: Usage of trademarks, trade secrets, and other IP, including restrictions and protection measures

9. Training and Support: Details of initial and ongoing training programs, technical support, and operational guidance

10. Quality Control: Standards maintenance, inspection rights, and compliance requirements

11. Marketing and Advertising: Marketing obligations, advertising fund contributions, and promotional requirements

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition: Restrictions during and after the term of the agreement

14. Term and Renewal: Duration of the agreement and conditions for renewal

15. Termination: Grounds for termination, procedures, and consequences

16. Post-Termination Obligations: Duties of both parties after termination including de-identification and confidentiality

17. Dispute Resolution: Process for handling disputes, including mediation and arbitration procedures

18. Governing Law: Applicable law and jurisdiction

19. General Provisions: Standard clauses including force majeure, notices, assignment, and amendments