These laws regulate the trademark, patent, design and copyright aspects that are related to a franchise agreement. Brand identification is its trademark, and the same is protected in India by proper registration, as mentioned in the Trademark Act. Each product has its own unique recipe! No one knows how to make the same taste as KFC chicken at home. This aspect of products is governed by patent law. This section provides detailed information on the assistance to be renewed by the franchisor and on the responsibilities of the franchisee. Some of the areas covered here are included – This clause mentions the non-refundable deductible fee that the franchisee must pay to the franchisor, as well as one-time fees, if they exist. The royalty clause is the non-recoverable portion of the payment (usually as a percentage) that the franchisee must pay to the franchisor. For example, the licence fee may represent 8% of the gross sale that must be paid each week. Royalties can be weekly or monthly depending on the type of contract. The details of the franchisor and franchisee and their relationship are outlined at the very beginning of the proposed franchise agreement. This section of the franchise agreement mentions the franchisor`s responsibility to use branding and advertising activities to assist the company. The franchisee`s responsibility for branding activities is also clearly mentioned. No, India does not have a separate adoption for the franchise business model.
There is no obligation to register franchise offers or provide franchise publication documents. There is no specific law that deals with franchise agreements and its aspects such as termination, secrecy and other clauses. A company in which a parent company makes its business model and brand available to a third party is referred to as a franchisee. A franchise is managed by individuals, but is stigmatized and monitored by much larger multinationals. With the advent of globalization and liberalization, companies have taken many economic models for food and prosperity. Franchising was one of the profitable business models involving domestic and foreign companies. There are different types of franchising systems that include dealer agreement, marketing arrangement, branding agreement, product distribution agreement, manufacturing arrangement, etc.