The Non-Exclusive Franchise Agreement is essential for businesses expanding through franchising in India while maintaining flexibility in their distribution strategy. This document is typically used when a franchisor wishes to develop a market area without restricting their ability to appoint multiple franchisees in the same territory. It outlines the complete franchise relationship, including rights granted, operational requirements, fees, training, support, and compliance with Indian laws and regulations. The agreement incorporates provisions specific to Indian business practices and legal requirements, including compliance with the Indian Contract Act, Competition Act, and relevant intellectual property laws. It's particularly important for businesses seeking rapid expansion while maintaining control over their brand and system standards, providing necessary protections for both parties while ensuring alignment with Indian regulatory requirements.
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1. Parties: Identification of the franchisor and franchisee with full legal names and addresses
2. Background: Context of the agreement, brief description of the franchise system and business
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of Franchise: Scope of franchise rights granted, non-exclusive nature, and territory definitions
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Franchise Fees and Payments: Initial fees, ongoing royalties, marketing contributions, and payment terms
7. Franchisor's Obligations: Support, training, and assistance to be provided by the franchisor
8. Franchisee's Obligations: Operational requirements, standards maintenance, and compliance obligations
9. Intellectual Property Rights: Usage of trademarks, trade secrets, and proprietary information
10. Training and Support: Initial and ongoing training requirements and support services
11. Operations and Quality Standards: Required operating procedures and quality maintenance standards
12. Marketing and Advertising: Marketing obligations, advertising guidelines, and promotional requirements
13. Records and Reporting: Financial record-keeping requirements and reporting obligations
14. Inspection and Audit Rights: Franchisor's rights to inspect premises and audit books
15. Confidentiality: Protection of confidential information and trade secrets
16. Non-Competition: Restrictions during and after the franchise relationship
17. Transfer and Assignment: Conditions for transferring or selling the franchise
18. Termination: Grounds for termination and termination procedures
19. Post-Termination Obligations: Obligations and restrictions after agreement ends
20. Dispute Resolution: Process for resolving disputes including mediation and arbitration
21. Governing Law: Applicable law and jurisdiction
22. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Insurance Requirements: Detailed insurance obligations when specific coverage types are required
2. Equipment and Inventory Requirements: When specific equipment or inventory must be purchased from designated suppliers
3. Real Estate Requirements: When location selection and premises requirements are crucial to the franchise
4. E-commerce Rights: When online sales channels are part of the franchise system
5. Sub-Franchising Rights: When sub-franchising is permitted in certain territories
6. International Operations: When franchise may operate across international borders
7. Development Schedule: When franchisee must meet specific development milestones
8. Guarantee and Indemnity: When personal guarantees from franchisee's directors are required
9. Force Majeure: When specific provisions for unforeseen circumstances are needed
1. Territory Map and Description: Detailed description and visual representation of the franchise territory
2. Initial Franchise Fee and Royalty Structure: Detailed breakdown of all fees, royalties and payment schedules
3. Operating Manual Table of Contents: Overview of the confidential operations manual contents
4. Brand Standards Guide: Specifications for use of trademarks, logos and brand elements
5. Initial Training Program: Details of required initial training curriculum and schedule
6. Approved Suppliers List: List of approved suppliers and products/services to be sourced
7. Equipment and Inventory Specifications: Detailed requirements for equipment and inventory
8. Financial Reporting Forms: Standard forms for financial reporting and accounting
9. Marketing Guidelines: Detailed marketing and advertising requirements and standards
10. Insurance Requirements: Specific insurance types and coverage amounts required
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