Response

A franchise agreement is a legal document that consists of the rights and obligations of the franchisor and the franchisees. It is the only official agreement binding both the parties together. The parties to a franchise agreement are the Franchisor and the Franchisee. India does not have any specific enactment for franchise business but various aspects of franchise business are governed by different laws. The Indian Contract Act is the fundamental law since it governs the contractual obligations between a franchisor and a franchisee in a business.

Stamp duty is to be paid on the Franchise Agreement. Schedule 1 of Maharashtra Stamp duty act deals with provisions and stamp duty rate on any particular document, agreement, contracts, deeds etc. You can execute the Franchisee Agreements on Non-Judicial Stamp Paper of Rs. 100/-.

Contracts can be executed through electronic methods, such as WhatsApp, SMS, or email. THey will be considered valid and binding as long as such contracts fulfill the requirements under the Indian Contract Act, 1872
The Information Technology Act, 2002 has also recognised e-mail contracts as valid and legally binding. E-mail contracts fall under the purview of Section 10A of the Information Technology Act

Thus you have pay the required amount for stamp duty and the agreement can be made online through e-mail.

Reference: Indian Contract Act, 1872
Indian Stamps Act, 1899
The Information Technology Act, 2002

202100190-20210024-6492

LAWAYZ-2023-160