Legal Aspects of Franchise Business Archives

What is a Franchise Business? And Legal Aspects of Franchise Business in India Introduction The franchise business model is now emerging as an appealing business option for prospective entrepreneurs, whether for its profitability, the variety of options available, or the reputation that comes with the brand chosen. As readers maybe aware, franchising is the process by which an entity (also known as a franchisor in this context) allows existing or would-be entrepreneurs to use the franchisor's business model in another location for a set period of time. Here, in this article information on legal aspects of Franchise Business in India is mentioned. What is a Franchise Business? It is one of the main ways that foreign companies and brands have grown stronger in the Indian market. A franchisor (franchise brand) is involved in the process and offers the franchisee (owner of the franchise outlet) conceptual, structural, legal, and training support in exchange for an upfront start-up fee and royalty payments. Both the franchisor and the franchisee earn from owning and operating a franchise. The franchisor can further extend the business in untapped markets, thereby boosting the market share and revenues, after the franchisee has access to the brand’s devoted customer base, legal counsel, creative support, and training support. The most valuable and practical type of business opportunity is franchising. Legal Aspects of Franchise Business in India 1. Intellectual property Trademark A Trademark is a company's identity. It is the name under which the company operates. A brand can be a name, a logo, a tag-line, or a combination of these elements. Customers have goodwill and trust in a trademark. The franchisee uses this goodwill and trust to grow their own business. This law safeguards the franchisor's trademark rights. Copyright Copyright refers to the creator's exclusive right to use and license any original artistic content. A franchisor may license a brand's musical jingle, some interesting written content as marketing material, a video movie as an advertisement, or something to engage customers. Any transaction involving the exchange or licensing of copyrighted material is subject to the provisions of the Copyright Act. Patent A Patent is an original invention or innovation by a person or organization that has been duly registered under this act and is protected by the provisions of this act for its uniqueness. A Patent gives a company a competitive advantage in the market. It distinguishes the manufacture and delivery of a product or service in terms of utility and customer experience. So, if operating a franchise entails access to the franchisor's patents, the provisions of this act govern the exchange of patent-related information. Alternatively, a franchisee may offer some personal patent to improve the franchisor's product in exchange for the use of the franchisor's brand name. 2. Franchise Agreement for setting up franchise business in India A franchise agreement is the foundation of a franchise, aside from the obvious requirements of finance, infrastructure, and other necessities. The format, control, type of franchisor, and other factors influence the type of agreement used for this purpose. Franchise agreements must be in accordance with the Indian Contract Act of 1872. Franchisees may include disclosure requirements in their contracts, subject to this condition. In this case, the franchisor's misrepresentation allows the franchisee to file civil damages claims as well as criminal charges for misrepresentation of facts and criminal breach of trust. 3. Income Tax and GST Act For tax purposes, a franchise is considered an independent entity and must register for a PAN and TAN separately in order to file its annual income tax returns. It must also register with the Goods and Services Tax Act in order to collect GST from its customers. 4. Resolution of Disputes in a Franchise Business This is important from the perspective of a franchise because a franchise is typically opened in a location other than the original brand's outlet. That is the guiding principle of a franchise. The franchisee can benefit from the franchisor's brand power, and the franchisor can open more outlets in remote locations without incurring any business risk or investment. Given that the two parties to a franchise business agreement are almost always in different geographical locations, the laws governing disputes and claims may differ between the two. As a result, the parties must agree on the jurisdiction under which the agreement falls so that, in the event of a dispute, each party knows how the dispute will be resolved. Conclusion For franchises, there is no one go-to act. A franchise maybe subject to different laws depending on the circumstances. As a result, it is critical for an entrepreneur to understand certain legal aspects of establishing a franchise business in India.

For Indian Entrepreneur

For Foreign Entrepreneur

Special Entities

Tax Registrations

Other Registration

Returns

Annual Filings

Change Services

Closure

Legal Drafting

Special

Trademark

Copyright

Patent

Designing & Marketing

Blog

Legal Aspects of Franchise Business in India – A complete guide

Hi, Welcome to EbizFiling!

HOME

POLICY

RELATED LINKS

CONNECT WITH US

TOP 3 READS

All need to know about Trademark infringement

LLC vs. Corporation: Start your company in US

Duties of an Auditor in a Company

Secure Payment Modes

US payroll services in India
UK Business Outsourcing Process in India
File CRF Form to change Master Data on MCA
Reply to Notice Under Section 148 of Income Tax Act
Reply to Notice u/s 143(2) of Income Tax Act for Scrutiny Assessment
Reply to Intimation Notice under section 245 of Incone Tax Act
Reply to Defective Notice u/s 139(9) of Income Tax Act
Reply to Income Tax Notice u/s 143(1)(A) for Prima Facie Adjustment
Reply to intimation notice of Section 143(1) of Income Tax Act
Reply to Income Tax Notice Under Section 133(6)
Corporate Legal Advice
LEI Code Registration
Employee Background Verification
US Business Solutions and Outsourcing Services in India
Offshore Staffing Services in India
SEO Services in India
Content Writing Services in India
Annual Filing & Book-keeping & Accounting Service for Proprietorship Firm
ITIN Registration in the USA
File Form 10BD Online under Income Tax Act
Wall Designing
Virtual Office in India
Form 15CA Online Filing – Income Tax
NGO Darpan Registration
Overseas Direct Investment (ODI) through Automatic and Approval Route
HR Hiring and Recruitment Services in India
FCRA Registration Online in India
File Form CSR 1 online
Drop-Shipping Business in India by Foreigners
OPC Registration in India by an NRI
LLP Registration in India by an NRI
Company Registration in India by an NRI
Digital Marketing Services
Business Advisory Services
Run your operations / company in India without any liabilities
Right Issue of shares / Right Offerings
Application for the Extension of Name Reservation
Company Annual Filings in XBRL filing mode in India
Payment of TDS return on purchase of property (form 26QB)
ISO Certification in India
Add A Director
Accounting and Compliance Services for Start ups, Small companies, LLP and OPC (Micro Retainership Services)
FLA Return Filing Online to RBI in India
Foreign Direct Investment through Automatic and Direct Route
Form GSTR 1
Maharashtra Professional Tax
Premium Retainership Services in India
RBI Form FC-GPR
Charge Registration on property
RBI Form FC-TRS
E-Commerce Business
Logo Design Services
CMA Report Preparation
Startup Advisory Services
Trademark Registration / Brand Registration in the USA
Trademark Registration / Brand Registration in UK
Trademark Registration / Brand Registration in Malaysia
Income tax section 80g(5) registration
12AA & 12A Registration Process
Search Report ROC
Trademark Watch Services
GSTR 9C filing by CA- GST Annual Audit due date, GSTR 9C FAQs
Tax Consultancy Services
File ROC Form DPT 3 Return of Deposits
Surrender of DIN
Trademark Registration Process
Online LLP Registration and Complete Procedure
LLP Registration Procedure – copy
LLP Registration Procedure – copy
Hire Purchase
Contract Manufacturing Agreement
Web Development Agreement
Sole Selling Agreement
Underwriting Agreement
Mortgage Deed
Agreement Appointing A Common Arbitrator
Deed of Wakf-Alal-Aulad
Specific Power of Attorney
Foreign Collaboration Agreement Drafting
Joint Venture Agreement
Non- Disclosure Agreement
Franchise Agreement
Agreement to Sell Business
Vendor’s Agreement
Exclusive Distributorship Agreement
Shareholders Agreement
Consumer Complaint Letter
Power of Attorney
Company Name Change
Appointment of Auditors
Removal/Resignation of Director
GST Cancellation
GST LUT Letter of Undertaking
Conversion from Private Limited Company to Limited Liability Partnership (LLP)
Business Plan Preparation (Project Report)
Book-Keeping & Accounting
Payroll Setup & Processing
Trademark Rectification
Trademark Opposition
Trademark Renewal
Trademark Withdrawal in India
ESI Returns
PF Returns
भारत में कंपनी पंजीकरण / रजिस्ट्रेशन
Company Registration in India
TDS Returns Revision
Removal of Charge
Modification of Charge
Creation of Charge
MOA/AOA Printing
MOA/AOA Amendment
IEC Modification
Change of Registered Office Address
Producer Company
OPC to Private Limited Company
Conversion of Sole Proprietorship to OPC
Sole Proprietorship to Partnership firm
Conversion from Proprietorship to LLP
Conversion of Proprietorship to Private Limited Company
Conversion of Public Limited Company to Private Limited Company
Private Limited Company to Public Limited
Conversion of Partnership to Private Limited Company
Conversion of LLP to Private Limited Company
Conversion of Partnership to LLP (Limited Liability partnership)
Nidhi Company
Del Credere Agreement
Lease deed
FIND GST RATE, HSN CODE & SAC CODE
Public Limited Company
MCA Companies Fresh Start Scheme
MCA LLP Settlement Scheme 2020 (LSS 2020)
DIR 3 E KYC
A Quick guide to company registration in Bangalore
Apply for FSSAI license or Food license in India
Dormant Company Status Application
Trademark Registration in India
Conversion From Registered Partnership To LLP
Conversion From Registered Partnership To Private Limited Company
Change in Registered Office of LLP
LLC Annual Compliances in Wyoming, USA
LLC Annual Compliances in Florida, USA
LLC Annual Compliances in Delaware, USA
Company Registration in Indiana
Company Registration in California
Company Registration in New Mexico
Company Registration in New York
Company Registration in Texas
Company Registration in Wyoming, USA
Register Company in Florida, USA
Company Registration in Delaware
Company Registration in USA
Company Registration in Malaysia
Company Registration in UK
Conversion of Private Limited Company to OPC
Opening a Branch in India by a Foreign Company
Nidhi Company Annual Filing
Trademark Registration in Mumbai
Private Limited Company registration in Mumbai
MicroFinance Company registration
Register a company in India from UK
Register a company in India from Germany
Register a company in India from France
Register a company in India from US
Register a company in India from Canada
Register a company in India from UAE
Register a company in India from Singapore
Register a company in India from Australia
Private Limited Company
Private Limited Company Registration
Private Limited Company Registration
Limited Liability Partnership Registration in Mumbai
Limited Liability Partnership
Secretarial Compliance Services
Revival of Struck Off Company
Limited Liability Partnership
Sole Proprietorship Firm Registration
Partnership
Hindu Undivided Family (HUF), HUF Deed
Conversion into LLP
One Person Company (OPC) Registration in Mumbai
One Person Company (OPC)
One Person Company (OPC)
One Person Company (OPC)
Non Profit Organization
Limited Liability Partnership
Indian Subsidiary
Company Registration in India- Know how to open a Company in India
Company Registration Process in India for Foreigner- Know How to Open a Company in India
International Trademark Registration Under Madrid Protocol
Trademark Registration – copy
Trademark Registration
Trademark Objections
Trademark Assignment
Copyright Application
Provisional Patent
Patent Search
Patent Registration
Surrender IEC License Online in India
Renewal of IEC License
IEC Registration in Mumbai
IEC Registration
Add/Remove a Partner in LLP
Change in DIN
Digital Signature
DIN Application
Conversion of Section 8 Company to Private Limited Company
DPIIT Startup Recognition certificate
E-Form Commencement of business certificate(form-20a)
Aadhaar Udyog Online Registration
New Form INC-22A
SSI/MSME/Udyog Aadhar Registration
PAN Application
TAN Application
GST Modification
GST Registration
EPF Registration
ESIC Registration
Change in Directorship
Increase in Authorized Capital
Change in LLP Agreement
LLP Name Change
Share Transfer & Transmission
Annual Filing For Trust in India
E-RCMC Registration under EPCES in India
APEDA (RCMC) Registration in India
ROC Annual Compliance for Producer Company
ROC Annual filing for Section 8 Company
ROC Annual filing for Public Limited Company
Annual Filing & Bookkeeping & Accounting Service for Partnership Firm
Private Limited Company Annual Filing
OPC Annual Filing
LLP Annual Filing
Strike Off Company
Strike Off LLP
Dissolution of Firms
Strike Off OPC
Appeal to CIT- File an Appeal to Commissioner to Income Tax
Reply to Scrutiny Assessment Notice u/s 143(3)
Reply to Income Tax Notice- Know How to Respond to IT Notices
Income Tax Returns
TDS Returns
GST Returns