Preparing your Franchise Agreement India, Perfectly in 7 Days.
It is extremely important that you understand the nuances of Indian franchising deeply. India does not have any separate enactment for franchise business model. There is no requirement to register franchise offerings or to provide franchise disclosure documents in India. There is no specific law dealing with franchise agreement and its aspects such as termination, non-disclosure, and other clauses. This is why it is hard having a franchise agreement format India. As the model franchise agreement India does not exists, it becomes all the more important to safeguard your business interests, it is advisable to get into an agreement.
From the Franchise Agreement Format to Contents of Franchise Agreement, every step plays an important role. Each part of the agreement defines the roles and responsibility of each party involved.
Ever wondered what it takes for a master franchise agreement India to be successful without any setbacks?
There is no specific franchising legislation or franchise law. Your business is absolutely protected when you integrate all of the following Act’s while preparing your agreements.
- 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
Once you understand all of the above for your business, you take the first steps correctly in creating an effective franchise agreement in 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 agreement fees, removal of incidences of duplication of taxation, and other charges . 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 adopt a Master Franchise Agreement India could get their existing drafts revised to be enforceable in India.
Protect Your Business – Brand Completely. Integrate Your Franchise Development Plan Fully.
It is imperative that you undergo a comprehensive franchise development program before you start your franchise agreement preparation. Once you have completed the entire program with an experienced consultant you will know what operational and marketing and other elements have to be protected in your franchise agreement.
Merely copying your competitor’s draft agreement or getting it done from a purely legal perspective alone is not enough. You need an experienced franchising agency to help you will all aspects of your franchising and with the integration of every element adequately they can make recommendations to your lawyers or legal agency on what they would require in the franchise agreement from their perspective. Franchise lawyers India are the most sorted individuals ensuring all the legal procedures are followed through. This is how most big brands are able to protect their franchising properly and create a strong franchising foundation.
Wanna know the basics of what is a franchise agreement?
You could easily download a franchise agreement India sample or a franchise agreement pdf online or know about its content on our blog.
Franchising Your Business Formats. Manuals, Models, Agreements in Sample Word Pdf Doc.
Have you begun the preparations to franchise your business? Call the Experts at sparkleminds for all your franchising & documentation requirements. We ensure that you receive the best format agreement in India. The contract agreement India will help you differentiate from other competitors when it comes to franchising.
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The franchise agreement is ‘compulsorily’ required, to offer your franchise in India. We Create a Franchise Agreement that Protects you completely, is Compliant & Is very Balanced.
How To Prepare A Franchise Agreement And When?
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 a wide range of services that cover the entire gamut of franchising. Most importantly, we know what you must not do and 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 franchisees. They feel that these franchise disclosure documents are sufficient to get started and a simple franchise terms and conditions agreement drafted by any lawyer is sufficient in order to reduce the franchise agreement cost. They recruit a few franchises quickly as their business or brand is attractive. . This is where things begin to fail. It is important to create the right franchise strategy, documentation, training programs, and another support system at the initial stage only to avoid consequences later, with assistance from experts.
Franchising is like that tip of the iceberg, 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.
Franchise Model Requirements
At Sparkleminds, we believe strongly in creating your franchise model first. Once your franchise program is structured correctly, you go about creating a strong legal document. It is then integrated with important terms and conditions, rights and obligations, customer service standards, provisions, terminations, etc. We discuss the roles and responsibilities on both sides and help the franchisor understand the limitations and advantages of working with franchises. The creation of the right Franchise Agreement Format happens when you undergo this exercise properly, as mentioned above and can be done in 7 Days, in case you already have a few franchises ready to sign up.
Create Your Draft Franchise Agreements, Manuals and Other Documentation from the experts. Ensure that you have everything in place while you Franchise Your Business to Protect it.
Registration of Franchise Agreement India
Most businesses cannot be franchised in their original forms and have to be reconfigured at an early stage. They must blend into franchising and must have the potential to scale up quickly. Doing the entire business model with an experienced franchise consultant at this stage is an absolute compulsion to help you navigate the pitfalls of franchising, early. Once you have done this, you go about hiring specialized franchise lawyers in India, not before that. Franchise agreement in India is printed on legal stamp papers. They are bought from the respective state registrar’s office. Both parties sign the agreement in the presence of a witness.
It is advisable not to replicate your competitor or follow a similar business. Your business is unique. Do not go fishing for a franchise contract sample or a franchise agreement sample in India while exploring the different types of franchise agreement that could be suitable for your business or for that one franchising agreement sample that is closest to your industry or sector. The draft agreement template should factor in your strengths, weakness, goals and franchise strategy. Do not ever copy, any franchise agreement format, as that is the surest way to commit 100’s of mistakes at your end. You are unique and hence must not clone anybody’s model. We have seen blunders happening through this cloning and usually term these as “franchise genetic failures.”
Franchise Agreement does not protect alone, it could also be a Good Marketing Tool.
Prohibitive clauses generally form an integral part of franchising agreements. This may not constitute a fair business practice. Franchisors at times go overboard to safeguard their business against perceived malpractices. Franchisees find their investments or efforts at high risk. Having interacted with both sides, we always advise the franchisors to ensure that they have an agreement that compliments their business growth. It also must be fair to both sides, to whatever degree it is possible. All the rights are mentioned to justify the Franchisees’ interest along with the employee well-being and the franchisor’s business. Finally, it must aid the expansion they seek, without compromising on any legality.
It is extremely critical to have a franchise agreement in India that helps you achieve the growth that you are seeking across different regions. We have seen that this becomes a bottleneck for franchise marketing teams. In addition, when not done correctly, the franchises do not pay the desired royalties and fees.
How does a franchise steal or replicate a franchisor’s business so easily?
The franchise is not at fault. If you are the franchisor, then you are!! You have not protected the business adequately, and have permitted the .
Call us now to protect your business and to help you create the right legal framework and documentation for your business.