A franchise agreement in essence is a codified relationship between a franchisor and a franchisee. In this contract, the franchisor agrees to permit franchisee with name or company schemes to a single person or entity. The conditions of this relationship including brand name, finances, royalties' use of trademark operations, training support etc. are framed to suit both parties so that they can function with productivity. The duration of the agreement, circumstances leading to disciplinary actions and penalties are also specified.
India does not possess independent laws that help in conceptualizing explicitly with the franchise business model. The laws deal with how they should function and are thus regulated. The law does not cover aspects like franchise agreement, its termination, etc.
India is blooming with franchise opportunities. The challenge is to find the right one for yourself. Meticulously go through the franchise agreement and it will give insight into vital clues about provisions and this you can tally with your needs.
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