Any firm with a parent company that offers a fundamental business strategy and brand name is referred to as a franchisor. A franchisee is a third party who borrows the parent company’s values and brand image. While the franchise is owned, operated, and managed by people, the bigger parent business, which is generally an MNC, oversees the entire process.
The different laws which govern various aspects of franchising in India are as follows:
The Indian Contract Act, 1872.
The Competition Act, 2002
Income Tax Act, 1961
Consumer Protection Act, 1986
Arbitration and Conciliation Act, 1996
The Foreign Exchange Management Act, 1999
The Trademarks Act, 1999
Patent Act, 1970
Design Act, 2000
Copyright Act of 1957
No. India does not have separate laws that deal explicitly with franchise business models. We do, however, have regulations governing how they must operate. There is no explicit legislation in India that governs franchise agreements, their cancellation, the drafting of provisions, and non-disclosure. However, many laws in India serve to govern and regulate the operation of franchise firms.
