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Multi Unit Franchise Agreement Template for India

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Key Requirements PROMPT example:

Multi Unit Franchise Agreement

"I need a Multi Unit Franchise Agreement for a quick-service restaurant chain in India, granting rights to develop 10 units across Maharashtra over 5 years starting January 2025, with provisions for local menu customization and strict quality control measures."

Document background
The Multi Unit Franchise Agreement is a specialized legal document used when a franchisor grants rights to a franchisee to develop and operate multiple franchise units within a defined territory in India. This agreement is more complex than a single-unit franchise agreement as it must address development schedules, territory protection, and cross-unit operational standards. The document is particularly relevant in the Indian market where rapid expansion through franchising has become a popular business growth strategy. It incorporates provisions compliant with Indian legislation, including the Indian Contract Act, Competition Act, and Trademarks Act, while addressing specific multi-unit development aspects. The agreement typically includes detailed schedules for unit development, territory definitions, training requirements, and operational standards that apply across all units. It's designed to protect both the franchisor's brand integrity and the franchisee's development rights while ensuring sustainable business growth.
Suggested Sections

1. Parties: Identification of franchisor and multi-unit franchisee with complete legal details

2. Background: Context of the agreement, brief description of the franchise system and multi-unit development intention

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Grant of Rights: Scope of franchise rights, territorial rights, and development schedule for multiple units

5. Term and Development Schedule: Duration of agreement and specific timelines for opening each unit

6. Fees and Payments: Initial fees, royalties, marketing contributions, and other financial obligations

7. Obligations of the Franchisor: Support, training, and assistance provided by the franchisor

8. Obligations of the Franchisee: Operational requirements, compliance standards, and development commitments

9. Brand Standards and Quality Control: Requirements for maintaining brand consistency across all units

10. Intellectual Property Rights: Usage of trademarks, copyrights, and proprietary information

11. Training Requirements: Initial and ongoing training requirements for all units

12. Marketing and Advertising: Marketing obligations, contributions, and coordination across units

13. Records and Reporting: Financial reporting, auditing, and record-keeping requirements

14. Transfer and Assignment: Conditions for transferring rights or units to third parties

15. Termination: Grounds for termination and its consequences

16. Post-Termination Obligations: Obligations and restrictions after agreement ends

17. Dispute Resolution: Process for resolving disputes including mediation and arbitration

18. Governing Law: Applicable law and jurisdiction

19. General Provisions: Standard boilerplate clauses including force majeure, notices, etc.

Optional Sections

1. Sub-Franchising Rights: Include when franchisee is granted rights to sub-franchise to others

2. International Operations: Include for cross-border franchise operations

3. Digital Operations: Include for digital/online business components

4. Area Development Rights: Include when specific territory development rights are granted

5. Equipment Leasing: Include if franchisor provides equipment leasing arrangements

6. Real Estate Requirements: Include if franchisor has specific real estate approval rights

7. Supply Chain Requirements: Include if there are mandatory supplier relationships

8. Employee Standards: Include if there are specific employment requirements

9. Guarantee Provisions: Include when personal guarantees are required from franchisee's principals

Suggested Schedules

1. Schedule 1 - Development Schedule: Detailed timeline for opening each unit with milestone dates

2. Schedule 2 - Territory Map: Detailed description and maps of allocated territories

3. Schedule 3 - Fee Structure: Comprehensive breakdown of all fees and payment terms

4. Schedule 4 - Operating Manual Summary: Overview of the operating manual contents and compliance requirements

5. Schedule 5 - Brand Standards: Detailed specifications for brand compliance

6. Schedule 6 - Training Programs: Details of required initial and ongoing training programs

7. Schedule 7 - Equipment and Inventory Requirements: Specifications for required equipment and inventory levels

8. Schedule 8 - Approved Suppliers: List of approved suppliers and purchasing requirements

9. Schedule 9 - Marketing Guidelines: Specific requirements for local and national marketing

10. Schedule 10 - Reporting Forms: Templates for required operational and financial reports

11. Appendix A - Personal Guarantee Form: Template for personal guarantees from franchisee principals

12. Appendix B - Confidentiality Agreement: Detailed confidentiality and non-disclosure terms

13. Appendix C - Unit Opening Checklist: Detailed requirements for opening each new unit

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























































Clauses


















































Relevant Industries

Retail

Food & Beverage

Hospitality

Education & Training

Healthcare Services

Automotive Services

Real Estate Services

Personal Services

Business Services

Fashion & Apparel

Technology Services

Fitness & Wellness

Entertainment & Recreation

Relevant Teams

Legal

Operations

Business Development

Finance

Compliance

Property

Training

Quality Assurance

Brand Management

Commercial

Risk Management

Strategy

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Franchise Development Manager

Legal Counsel

Business Development Director

Operations Director

Franchise Operations Manager

Commercial Director

Territory Development Manager

Brand Compliance Manager

Training Manager

Finance Director

General Counsel

Franchise Sales Director

Property Development Manager

Regional Operations Manager

Quality Assurance Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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