What should I check before signing a franchise agreement in India?

10-Point Franchise Agreement Checklist

1) Territory exclusivity — Get a clearly defined exclusive territory with radius/pin codes in writing. 2) Royalty structure — Check for hidden fees beyond stated royalty %. 3) Marketing fund — Who controls it, how is it spent, is there an audit? 4) Renewal terms — What are the renewal fees (typically 50% of initial fee)? 5) Exit clause — Can you sell the franchise? Under what conditions? Transfer fees? 6) Supply obligations — Are you forced to buy supplies only from franchisor at their prices? 7) Performance targets — What happens if you miss monthly targets? 8) Training & support — Is it committed in writing with timelines? 9) Non-compete — How many years post-termination, how many km radius? 10) FSSR document — Reputable franchisors provide Franchise Disclosure Document before signing.

Always get a franchise-specialised lawyer to review the agreement (Rs 15,000–50,000). Calculate projected returns with our Franchise ROI Calculator before committing.