Franchising is a process where the franchisor gives the entrepreneurs an opportunity to use the franchisor’s business model for a specific period of time.
Here we discuss about the franchising laws in India:
Legal Definition and Scope:
As per the Finance Act of 1999, ‘Franchise’ is an agreement that authorises the ‘Franchisee’ to sell or manufacture goods, provide service identified with the franchisor. A franchise agreement involves a franchisor and a franchisee. While the franchisor is an entity which lends its trademark, trade name or any other form of intellectual property rights along with the business system, the franchisee refers to a person who undertakes the former’s business under the mark or name of the franchisor by paying a royalty and an initial fee.