Franchise Agreement in India Know here

The Franchise Agreement is a legal agreement binding the franchisee with the rights holder. The contract details the franchisor's expectations of the franchisee and how the business is conducted. An agreement in which a franchisee (business) agrees to provide the franchisee (individual or legal entity) with the name of the business or corporate system. Franchising (or franchising) is outsourcing a brand to improve distribution. Merchants must pay royalties and/or initial fees for the right to conduct business on behalf of the merchant and its systems. Technically, the term "franchise" refers to an agreement binding two parties, but it is more commonly used to refer to the actual business of a franchise. There is no specific law governing franchise agreements, but various regulations apply. Some of them are:

Indian Contracts Act, 1872

Consumer Protection Act, 1986

Trademark Act, 1999

Copyright Act, 1957

BENEFITS OF FRANCHISE AGREEMENT:

Define the relationship- This Agreement governs the relationship between Merchant and Merchant, including the benefits and limitations of both parties.

Greater Control for Franchisors- This agreement ensures that the franchisor, as the owner of the business, has greater control over its operations.

Brand Management- The agreement provides the possibility for merchants to decide how to accept business and branding. Penalties for mismanagement or violations of a business brand are always determined to protect the brand's image and reputation.

Franchise Agreements- This must comply with the provisions of the Indian Contracts Act 1872. Under this condition, franchisees may include disclosure requirements as part of their contracts.