diff --git a/frappe/utils/boilerplate.py b/frappe/utils/boilerplate.py
index 577c70b89f..0ce075b189 100644
--- a/frappe/utils/boilerplate.py
+++ b/frappe/utils/boilerplate.py
@@ -771,6 +771,24 @@ readme_template = """### {app_title}
 
 {app_description}
 
+### Contributing
+
+This app uses `pre-commit` for code formatting and linting. Please [install pre-commit](https://pre-commit.com/#installation) and enable it for this repository:
+
+```bash
+cd apps/{app_name}
+pre-commit install
+```
+
+Pre-commit is configured to use the following tools for checking and formatting your code:
+
+- black
+- isort
+- flake8
+- eslint
+- prettier
+- pyupgrade
+
 ### License
 
 {app_license}