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Franchising is nothing but a business deal wherein the franchisor extends to the franchisee the right to use its trademark as well as business operations and processes, for production and marketing of any goods or services as per some particular specifics. The franchisee usually has to pay a one-time fee along with a percentage of sales revenue as a matter of royalty. It ensures benefits such as immense and swift name recognition, tried, trusted and tested products, basic building design and décor, original techniques in operations and promotion of the business, training of employees, assistance for promotion and up-gradation of the products and increased customer base.

Franchising structure is regulated by a franchising agreement. It involves major factors of the franchising agreement like the purpose and scope of franchising opportunity and relevant provisions for the parties to protect technology, trade and commercial secrets during the striking of the venture. It also consists of franchising fee and royalty which is to be paid by the franchisee to the franchisor based on the business plan. There are certain provisions relating to the assets and manpower which is to be contributed by each of the parties involved. Parties might be required to supervise, train and manage the same as per the franchising arrangement. It also takes into account the Intellectual Property Ownership wherein the ownership of any intellectual property is determined. It is generally inclusive of responsibilities of the parties and the procedures to be followed in the regular franchising operations and its functioning. The agreement also prescribes certain dispute settlement and resolution remedies to resolve disputes which can potentially arise between the franchisor and the franchisee. The agreement may also state the provisions and the mutual means for termination of the franchising agreement.

We can help you in the overall liaison with target companies for the purpose of bestowing you with a fruitful franchise.