Start a Franchise Business in India
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Start a Franchise Business in India

Having a liberalized economy, India became one of the most developed countries at a global level. The franchising sector in India is expanding and this business model is recommended as a way for starting a company in this country. Those who want to open a company in India should know that a franchise business is established through a franchising contract.

What are the most developed franchising activities in India?
The franchising sector in India is the most developed in the field of food and beverages, representing approximately a third of the total businesses incorporated in this industry. Other important business activities developed through franchises operate in economic sectors such as retail, education, beauty, healthcare and hospitality.

What is a franchise agreement in India?  
A franchise agreement is that the main legal instrument through which a franchise business are often found out in India. Through this document, a franchise will grant to a franchisee the proper to use its business model, its brand and its know-how, with the aim of expanding the respective company on the local market. a number of the foremost important aspects that ought to be included during a franchise agreement are the following:
  • The date at which the document will become applicable and therefore the names of the parties which will enter the franchise business;
  • The period that the document are going to be available and provisions regarding the renewal of the contract;
  • The countryside during which the franchisee can develop the franchise business;
  • Regulations pertaining to employment matters, advertising, periodical inspections et al.

Franchisees must use the products or services provided by the franchisors which are usually registered as trademarks in India.

Why invest within the franchising sector in India?
The franchising sector in India has been steadily growing since 2008. At the extent of 2017, the franchising sector in India had a complete value of USD 13,4 billion, but it’s estimated that by 2022, the market will increase at USD 51 billion, as stated by the Franchise Association of India. Our team of consultants can assist on the procedures on the way to start a corporation in India in one among the above mentioned industries.