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Franchise Agreement And Model


It is a legal contract between a franchisor and a franchisee. The agreement’s content can vary depending upon the franchise’s system, the state jurisdiction of the franchisor, the franchisee, and the arbitrator. It provides the investor with a product, a branded name and recognition, and a support system.

Advantages of Franchise Agreement –

  1. Brand Recognition
  2. Managerial Assistance
  3. Quality Control
  4. Higher Success Rates
  5. Opportunity for Growth

Does India has a specific law for franchise business

No, 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. There is no specific law dealing with franchise agreement and its aspects such as termination, non-disclosure, and other clauses.

Common problems faced by franchisee owners in a franchise business

  1. Hidden Fee
  2. Finding a great team
  3. Financing
  4. Risk involving the franchise
  5. Business plan

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