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What should be the Contents of a Franchising Contract as Per Indian Laws?

In the absence of a specific legislation, it essential that the Franchising contract is negotiated and drafted carefully. Some of the important clauses to be included in the contract could be:

Rights and Obligations of the parties: The rights and obligations of each party should be clearly laid down in order to avoid any kind of confusion.

Intellectual Property Rights: This clause would specify the Intellectual Property, for example: the trademark or trade name, involved in the Franchising arrangement.

Territory: This clause would clearly state the size of the territory for which the Franchising agreement shall be valid.

Consideration: This would include payment terms i.e. royalties of the Franchising agreement.

Termination: This clause usually lays down the conditions warranting the parties to cancel the Agreement.

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