Preparing your India Franchise Agreement, Perfectly
It is extremely important that you understand the nuances of Indian franchising deeply. There is no specific franchising legislation or franchise law in India. Indian Contract Act 1982, The Trade Mark Act 1999, The Arbitration and Conciliation Act 1996, The Competition Act 2002, Income Tax Act 1961, The Consumer Protection Act 1986, Intellectual Property Laws, Taxation Laws, Indian Labour Laws, Transfer Of Property Act 1882, Foreign Exchange Management Act 1999, The Designs Act 2000, The Patents Act 1970, The Copy Right Act 2013 are considered while creating an effective franchise agreement india.
The implementation of GST in July 2017 has eased some portion of the franchise rules and regulations in India. The ongoing taxation reforms have resulted in a more uniform tax structure. There is greater clarity on payments of royalty, franchise fees and other charges and removal of incidences of duplication of taxation. This was affecting the franchise systems on various counts. All tax payments and statutory filings have become online with strict timelines. These are just a few things that you will have to structure and integrate correctly whilst you are planning to set the franchise terms and conditions agreement. International companies looking to adapt their Master Franchise Agreements in India could look at the above developments positively.
Let us not go into the basics of what is a franchise agreement ?
You could easily download a sample franchise agreement pdf or know about its content at our blog.
Have you begun the preparations to franchise your business ?
Do you have the list of documents required for franchise in India ?
Franchise agreement is ‘compulsorily’ required, to be able to offer your franchise in India. Here is how you can go about this:
How To Prepare A Franchise Agreement?
Over the last two decades, we have built competitive intelligence and ground level understanding. There is a high level of leakage, across layers. We help the franchisor to plug these leakages, at the earliest. With this knowledge and understanding, we protect our clients and make franchising work for them. We have helped our clients with wide range of services that cover the entire gamut of franchising. Most importantly, we know what you must not do and hence ensure that we safeguard you from costly mistakes.
Several Business owners in a bid to start franchising quickly, provide P&L sheets, ROI Plans and a basic agreement (done by any lawyer) to prospective franchises. They recruit a few franchises quickly as their business or brand is attractive. They have serious enquiries, who feel that they could replicate this success, in their locations. This is where things begin to fail. It is important to create the right franchise strategy, documentation, training programs and other support system at the initial stage, with the assistance from experts. Franchising is like that tip of the ice-berg, which to most people externally seems beautiful. Internally, you need to have a very strong base, to be able to support the majestic tip on the top.