A Franchise Agreement is a legally binding contract between a franchisor (brand owner) and franchisee (business operator) that governs the terms of operating a franchise. It defines the rights, responsibilities, and obligations of both parties, ensuring smooth functioning of the franchise relationship.

In India, a franchise agreement is crucial for protecting the franchisor’s intellectual property, maintaining brand standards, and ensuring the franchisee operates within defined limits. For entrepreneurs looking to expand through franchising or individuals planning to buy a franchise, a well-drafted agreement ensures legal protection and business success.