Scroll down to know about franchise opportunities in India and the significance of quality franchise agreement in India.A fast growing middle class population with a faster growing disposable income and propensity to spend is one of the paramount reasons for the mushrooming of the franchise opportunities in India. The Indian franchise industry has seen a phenomenal growth past years. And why not, the benefits of franchise witnessed by the entrepreneurs from the mammoth business entities are also immense. These business entities in India, which offer top franchise opportunities, may be either nationally renowned names or hot brands carry an international following and have a ready brand recall. Beginning with them, you do not have to start with an unknown product from scratch. The radical significance of franchise opportunity or how a healthy franchise agreement should be; can be righteously marked in the following way.Unlocking the Real Definition and Significance of Quality Franchise Agreement in India:Before head starting our discussion with the importance of quality franchise agreement let's get clear with the term itself. A 'franchise agreement' is a contract between the Franchiser and the franchisee which defines their relationship and inter se rights and obligations. Our sheer stress on the word "Quality" has an inflated momentum, since 'Quality' assumes accrual significance in a franchise arrangement due to the inherent commercial and operational complexities present in such arrangements. A quality franchise agreement effectuates the underlying symbiotic relationship between the Franchiser and the franchisee. Now let's get down to its importance.
• A good franchising agreement readily ensures that quality control mechanisms do not flout India's competition laws.• Entrepreneurs before signing the franchise agreement in India should ensure that the franchisee conforms to the business concept. It has all the rigorous provisions to deal with situations of breach and non-adherence to the business format and misuse of brand by the franchisee. Also, the franchise agreement must protect the revenue flow from the franchisee to the Franchiser.• A quality franchise agreement should provide adequate fetters and security against misuse of the Franchiser's intellectual property rights by the franchisee. Further, it must provide enough quality control mechanisms to the Franchiser, including control over managerial discretion of the franchisee, to enable it to control its business concept and protect its brand and reputation. • Consequently, the franchise agreement must unambiguously and effectively address vital issues, such as, the temporal and territorial scope of the license, the rights and property licensed, nature of the license, restriction on use of licensed rights and property, quality control measures, including periodic audits to ensure whether or not business concept is adhered to, sourcing of products, training, type of products to be sold under the franchise, etc.These were the traits of a healthy franchise agreement. So, make sure when you look for franchise opportunities in India, or you offer franchise to other entrepreneurs then you conform to all the standards outlined above.
Source : articlesbase.com
0 comments:
Post a Comment