Franchise lawyer | Legal issues in franchising in India | Lawyers for franchise in India
Domestic, international businesses and brands looking to enter and expand into the Indian retail market, and potential franchisees looking to acquire a franchise interest seek franchise legal advice on legal issues concerning franchising in India. Agency and franchise lawyer’s at Legaleye Associates have vast experience acting as franchise counsel, franchise lawyer, advising on franchise law and providing regular franchise related legal advice and assistance throughout India. A franchise lawyer at our office is able to provide precise franchise advice, opportunity, reviews, due diligence and exhaustive franchise dispute assistance.
We also help companies expand their businesses through franchising. We also draft franchise agreements and non-disclosure documents. Our franchising lawyers in Mumbai provide ongoing franchise compliance counselling. Legal advice should be taken on the specific terms and conditions to ensure the rights, potential risks and liabilities.
DOES INDIA HAVE ANY SPECIFIC LAW FOR FRANCHISE BUSINESS AND WHAT ARE THE RULES OF FRANCHISE IN INDIA?
Franchising refers to the business model whereby one entity (the franchisor) grants an independent operator(s) the right to use the franchisor’s business methods and practices and can include the right to distribute products manufactured by the franchisor, use the franchisor’s trade marks and obtain training and other support such as international and national advertising. Such agreements are often for a long period with early termination by either party usually incurring serious penalties. The franchise model has become a popular method for expansion. It is also popular with Indian businesses seeking to expand domestically and regionally.
Although, there is no one specific franchising law in the India, (unlike in other jurisdictions), a range of civil and commercial laws apply depending on the terms of the contract. In fact, there are multiple laws that can apply to franchising relationships and these include law relating to contracts, agency, distribution, leasing, assignment, securities, financial investments, intellectual and industrial property, competition, companies, immovable and movable properties, labour, foreign investment, insurance, income tax, banking, import-export, technology transfer, and other legislation’s as may be applicable to different franchising arrangements.
WHAT ARE THE LEGAL ASPECTS OF FRANCHISING?
- There is no one specific franchise law in the India. The concept of franchising falls within the ambit of commercial and agency laws. Thus technically, there is no real difference between franchise, agency or distribution agreements.
- The agency laws tends to favor agents/ franchisees rather than franchisor’s, and therefore it is important to structure your agreement well.
- In cases of International Franchise arrangements, there are FEMA and RBI implications.
- In certain cases of international franchise arrangements, the approval of the Foreign Investment Promotion Board (FIPB) may be required.
- There is a prescribed formula for calculation of royalties for repatriation of funds by a foreign company outside India.
There are a number of methods available to mitigate the effects of application of the Indian agency laws. Our franchise lawyers in India provide complete legal services and solutions for franchisor’s and franchisees. We assist domestic and international clients in choosing the right franchise model, advise on identifying the right teams and tie-ups. Our franchise lawyers conduct due diligence, draft franchise manuals. We also make necessary representations to the Ministry of Commerce if required. Our franchise lawyers in Mumbai endeavor to render practical and business friendly solutions to clients.