A Franchisor is a business, which is the parent company that owns the brand name and the product/technology knowhow. The parent company loans these principles, product and brand to another entity known as the Franchisee. While the Franchise is independently owned, operated and managed, but the entire process of the usage or brand and sales of the product is overseen by the larger parent company.
No, India does not have separate laws that deal explicitly with franchise business models. India does not have any particular law that deals specifically with the franchise agreement, its termination, the setting of clauses, and non-disclosure. But several enactments help control and regulate the functioning of franchise business in India.
Yes, Franchise Agreement must be stamped according to relevant Stamp Duty Act, as applicable to your state.
The difference between licensing and franchising is that licensing is a legal relationship that is limited in scope and relates only to the use of a trademark or technology, whereas franchising involves a relationship that goes beyond the grant of a license and includes a relationship of control where the underlying business is required to operate in accordance with designated systems and procedures.
Franchise agreement sab se important document hota hai aur; hum first time entrepreneur hai; isliye kuch nai pata tha. LegalKart expert ne hume agreement ke sare pahlu samjhaye aur hamara kaam bhaut aasan kar diya. Thank you.
Pratyush Prakash , Patna
I was taking a franchisee of a small restaurant; my investment was about 15 Lakhs. My friend suggested me to speak to an expert from LegalKart for better understanding of Franchise business nitty-gritty. After discussion I realised had I signed that agreement I was definitely facing troubles due to many clauses in the agreement. Thank you for timely advice and business saving agreement amendments.
Rakhi M, Bangalore
I was planning to expand through my home furnishing business and wanted to appoint franchisee across cities. I was not sure that how will I trust some one whom I do not know and who will run their business on my brand reputation. LegalKart expert was very experienced about franchise business' micro issues and he helped me understand important aspects of my franchise business but also drafted an impeccable agreement to safeguard all my rights. I highly recommend an in-depth discussion and drafting of your franchise agreement with an expert. Every bit of it is worth the money spent.
VIJAY SARDANA, New Delhi