Restaurant Franchise Agreement Sample India

Learn more about www.legalhelplineindia.com/how-to-start-business-in-india/ DPI has become the heart of franchise agreements. It is necessary to delimit the intellectual property such as trademark, service mark, trade name, copyright, patent, trade secrets or know-how, etc., associated with the franchisor and the exact intellectual property it licenses to the franchisee. All such licenses must comply with the relevant intellectual property protection laws in India. 11.2 Advertising Funds. In addition to any other amount payable under this Agreement, during the term of this Agreement, the Franchisee shall pay the Franchisor or any other entity designated by the Franchisor an amount based on gross sales to be determined by the Franchisor from time to time in its sole discretion, provided that such amount does not exceed 2% of gross sales (the “Advertising Fees”), the amount used by the Advertising Fund (as that term is defined below). Advertising costs are the same for all Mama Fu franchisees. Payment of advertising fees is made no later than the Tuesday of each week and is based on the restaurant`s gross sales for the previous week. Advertising fees must be paid at the same time as the payment of the licence fee. (ii) develop, use and franchise anywhere (including within the franchise territory) the rights in trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignia, patents or copyrights not designated as trademarks by the franchisor for use with similar or different franchise systems for the sale of similar goods or services or different from those that are part of the Mama Fu system; without granting the franchisee any rights in it; Various aspects of franchise agreements and related laws in the country are as follows: Negative agreements related to non-competition and the protection of intellectual property and confidential information may be included in franchise agreements. Under such a clause, the franchisor may ensure that the franchisee does not start a competing business in the immediate vicinity in order to benefit from the franchisor`s brand value. A franchise agreement sets out the expectations of conduct and action for the legal and business relationship between the franchisor and the franchisee to operate a business under the franchisor`s brand. A substantial part contains the conditions set by the franchisor that the franchisee must comply with, but there are also provisions to protect the interests of the franchisee. A good franchise agreement also includes provisions such as dispute resolution and applicable laws that cover both parties in the event of a problem.

Provision should be made for one of the parties to be informed before any amendment to the agreement or before the agreement is terminated or terminated due to a defect. Termination must be made for a reasonable period of time. This provision is essential to make the treaty fair. According to the Consumer Protection Act 2019, various types of protective measures against unfair commercial practices are provided to the consumer. In the event of a defect in the product or lack of services, a consumer may file a complaint against the franchisee and the franchisor. If you operate a restaurant, cloud kitchen, or fast food store of any kind, most food franchisors try to get the following food franchise agreement templates from the top brand: A franchise agreement involves the transfer of some form of intellectual property, either an invention or a patent for the invention, or a trade secret (for example, mcDonald`s and Barista coffee). Intellectual property licensing is at the heart of a franchise, intellectual property licensing laws are very important in a restaurant franchise agreement. This aspect can be dealt with under various laws such as the Trade Marks Act of 1999, the Patents Act of 1970, the Designs Act of 2000 and the Copyright Act of 1957. These laws govern various aspects of a franchise agreement, including trademark, patent, design, copyright, etc. The Trade-marks Act protects the trade-mark, the unique identification of each trade-mark, through appropriate registration.

In gastronomy, this also applies, for example, a certain dish of a franchisor may have its own unique recipe. No one knows how to make the same flavor as a McDonald`s burger. This aspect of the product is regulated by patent law. In McDonald`s Corporation & Anr v. National Internet Exchange of India & Ors, McDonald`s claimed that the defendants fraudulently abused Mcdonald`s trademark and copyright. It was also alleged that the respondents registered misleading domain names containing the McDonald`s brand and operated fake websites that invited applications for McDonald`s franchises and illegally confiscated funds from the plaintiffs. Mcdonald`s sought an injunction preventing the defendants from engaging in such activities. The injunction was issued by the Delhi Supreme Court on the basis of prima facie evidence presented by McDonald`s. CONSIDERING that Mama Fu restaurants and the products sold there have a reputation for quality that has been acquired and is maintained by requiring all franchisees of the Mama Fu system to adhere to high standards of quality and service; and operations manual. If the franchisor and franchisee have disagreements about the most up-to-date content of the user manual, the main copy of the franchisor`s operating manual is checked. Upon expiration or termination of this Agreement for any reason, the Franchisee must return all copies of the Operations Manual to the Franchisor and, at the Franchisor`s request, confirm to the Franchisor that the Franchisee has not retained any copies in any medium. The user manual is confidential, protected by copyright and the exclusive property of the franchisor.

There must be a provision prohibiting the franchisee from using the franchisor`s intellectual property rights and/or business format following the termination of the contract. The franchisee must also be required to return any confidential information received during the term of the contract. The franchisor may also undertake that the franchisee will not open a competing business in the same place. In the agreement, the franchisor should set out the obligations it must confirm in order to protect the franchisor`s goodwill and brand. All conditions necessary for the protection of the franchisor`s trademark must be included in the preparation of these provisions. At the same time, the conditions must be conducive to a successful and profitable business of the franchisee. These conditions are constraints for the person concerned and must be respected, otherwise a breach of contract may occur. These obligations may include: 15.3 Breach. The franchisee must immediately notify the franchisor in writing of any counterfeit or imitation of trademarks, the mama fu system or any act of unfair competition against the franchisor or franchisee of which the franchisee is aware.

The franchisee may not provide oral or written notice, bring legal action, negotiate compromises or settle disputes regarding such violation or unfair competition without the prior written consent of the franchisor. The franchisor has the exclusive right to initiate, negotiate, compromise, settle, refuse, appeal or otherwise deal with such an action and to take such steps as it deems desirable to prevent such action and to join the franchisee and any other franchisee as a party to such an action in which the franchisor may be involved and in which the franchisee may have an is or would be an appropriate part. However, nothing in this document should be construed as requiring the franchisor to seek reimbursement of costs or damages of any kind in such dispute, the establishment or waiver of such claims being at the sole discretion of the franchisor. The costs of such a measure are paid to the franchisor by the franchisor and recovery is received from these offenders. That clause should also include conditions for delay and termination of the franchise agreement. Grounds for termination may include breaches such as material breach of the agreement, a party`s inability to enforce the agreement, bankruptcy or bankruptcy, and changes in the legal and regulatory framework in the country. .