Franchise Agreement India

Franchise Agreement India

Over the years we have built our competitive intelligence and have helped our clients with legal service that cover the entire gamut of franchising their business. Very often, we found business owners in a bid to enter franchise business early provide P&L sheet, ROI Plan and basic agreement for the prospective franchisee. At times they have gone and recruited few franchises and looking for consultants who do this act right. It should be noted here business usually fail during this stage. It is important to create the right franchise strategy with fundamentals governing proposals, protection of intellectual property rights, Indian Law and similar commercial documents at the initial stage with the assistance from experts. If a strong legal platform is built important terms and conditions, rights and obligations, customer service standards, provisions, terminations, etc. can be networked for the current business and future business climate.  Clients then define their role, responsibility as a franchisor and then go about hiring a professional to create a franchise agreements. It is advisable not to replicate your competitor or follow similar business, as we see your business is unique and the legal needs should be satisfied based on your strengths, weakness, goals and market strategy.

We have noticed a lot of prohibitive clauses in the franchise agreement that does not constitute fair business practices. While the franchisor is always concerned of safeguarding his business, the franchisee on the other end is very wary of the fact that they might not be well protected. Having interacted with many franchisees, we always advice the franchisors to ensure that they have an agreement which compliments their business growth and help them achieve the expansion they are seeking without compromising on any legal issues. It must also be noted that the Indian cultural, geographical and jurisdictional landscape has its own challenges with so many underlying adherences to taxes and obligations to various departments. We ensure the legal framework of the franchisor is built on a strong foundation ensuring the franchise business is well protected from all legal complications. The non-exclusive and exclusive rights are carefully drafted to justify the franchisees interest, the employee well-being and the whole eco system is conductive and well protected. All this is prepared in good faith to meet respective objectives of franchisor and franchisee.