The Real Estate Franchise Agreement is a crucial document used when an established real estate business wishes to expand its operations through franchising in India. This agreement type is specifically designed to comply with Indian legal requirements, including the Real Estate (Regulation and Development) Act (RERA), while protecting the franchisor's intellectual property and business systems. It's particularly relevant in the Indian market where real estate franchising is growing as a business model for expansion. The agreement covers essential aspects such as territory rights, operational standards, fee structures, and compliance requirements, while addressing specific challenges and regulations in the Indian real estate sector. This document is vital for both domestic and international real estate brands looking to expand through franchising in India, ensuring proper protection of both parties' interests while maintaining regulatory compliance.
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1. Parties: Identification of the franchisor and franchisee, including complete legal names, registration details, and addresses
2. Background: Context of the agreement, brief description of the franchise system, and the franchisor's business model
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of Franchise: Scope of franchise rights, territory allocation, and exclusivity terms
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Franchise Fees and Payments: Initial franchise fee, recurring royalties, marketing contributions, and payment terms
7. Intellectual Property Rights: Usage rights for trademarks, trade names, and proprietary systems
8. Training and Support: Franchisor's obligations for initial and ongoing training and operational support
9. Operations and Quality Standards: Required operational procedures and quality maintenance standards
10. Marketing and Advertising: Marketing obligations, advertising guidelines, and brand standards
11. Records and Reporting: Required business records, reporting obligations, and audit rights
12. Non-Competition and Confidentiality: Restrictions during and after the agreement term, protection of confidential information
13. Termination: Grounds for termination, procedures, and consequences
14. Post-Termination Obligations: Obligations of parties after agreement termination
15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration
16. Governing Law: Applicable law and jurisdiction
1. Multiple Unit Rights: Include when franchisee has rights to develop multiple locations
2. E-commerce Operations: Include for franchises with online business components
3. Sub-Franchising Rights: Include if franchisee is granted rights to sub-franchise
4. International Operations: Include for cross-border franchise operations
5. Property Purchase Options: Include when franchisor has first right to purchase property
6. Financing Arrangements: Include when franchisor provides or facilitates financing
7. Data Protection Compliance: Include detailed section when handling sensitive customer data
8. Force Majeure: Include detailed provisions for unforeseen circumstances affecting operations
1. Territory Map and Description: Detailed description and visual representation of allocated territory
2. Fee Schedule: Comprehensive breakdown of all fees, royalties, and payment terms
3. Operating Manual Summary: Overview of key operational requirements and standards
4. Brand Standards Guide: Detailed specifications for brand usage and marketing
5. Required Equipment and Supplies: List of mandatory equipment, software, and supplies
6. Training Program Overview: Details of initial and ongoing training requirements
7. Approved Suppliers List: List of authorized suppliers and vendors
8. RERA Compliance Checklist: Specific requirements for real estate regulatory compliance
9. Performance Metrics: Key performance indicators and evaluation criteria
10. Insurance Requirements: Detailed insurance coverage requirements
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