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Franchise Agreement

Franchise Legal Agreement Drafting

The Franchise Agreement drafted between the franchisor and franchisee talks about the rights and responsibilities along with dictating terms on the details of duties each party would be performing. This is legal contract safeguards the interest of both parties in the situation of closure/withdrawal/rejection/mishaps to name a few conditions.

At YRC, we follow a standard legal process while drafting the Franchise agreement. With competitive intelligence and deep knowledge of legal framework, our Franchisee Agreements are considered to be highly compliant with the existing laws. To ensure parity among both parties, our Franchisee legal agreement are drafted and vetted by some of the most senior lawyers in the country. As a responsible consultancy firm, YFRC believes in walking the extra mile to safeguard the interest and ensure legal safety of their clients, and therefore we consider all the possible dynamics of franchisee business while drafting the legal contract.

Key Areas, which are covered within
Franchisee Legal Agreements


Letter Of Intent (LOI)

A letter of Intent outlines the key terms of a future agreement between the 2 parties before they actually form a legal agreement. It’s a sort of initial agreement regarding the consent to the general terms and conditions.


Safeguarding Intellectual Property Rights

Intellectual property refers to the franchisor’s copyrights, brand name, trademarks to name a few. In other words, it’s about securing some of the most valuable assets of the franchisor. Under this, the franchisor has to allow the franchisee to use these IP’s for running their business.


Safeguard from Misconduct

Many times, franchisees have customers/clients who intentionally use their services for performing unlawful activities. In the legal agreement, this point is covered in detail to ensure any such activities.

Safeguard from Ambiguity

The franchise legal agreement balances the interests of the franchisees, the franchisor and therefore the scope of work of both the parties should be clearly stated under this point. If something, has been promised by the franchisor is included in the contract that has to be clearly stated and informed.


Non-disclosure Declarations

Depending upon the nature of the business, sometimes it’s viable to have ‘Non-disclosure’ declaration document signed between 2 parties. This limits both the parties not to share any information mentioned under the declaration for a specific purpose.

Business Operations Misconduct

It’s very important to clearly define the critical business operations and the consequences for the misconduct or deviations of same. Since we are designing your SOP’s, we understand your business operations and thus we know how to ensure standardization in your business operations.

Termination Clauses

In unfavorable conditions like bankruptcy, insolvency, or if any unlawful act committed, this clause comes into picture wherein the ‘affected’ party can terminate the franchise agreement at that point. The points at which the agreement can be called ‘off’ should be clearly discussed and documented in the agreement.

Litigation Management

In case of any dispute or conflict, under this clause all such cases will be dealt upon under legal supervision.

Jurisdiction Compliances

The legal case will only be registered in the city where the franchisor is located.


Exit Strategy

Once a franchise agreement is terminated or expired, the franchisee is still accountable to the franchisor till the obligation (trademark, license, or even leasehold documents to name a few) towards the franchise is fully complete.

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