Franchising in India - The Road Ahead

16 Pages Posted: 31 Jan 2009 Last revised: 17 Mar 2009

Date Written: January 31, 2009

Abstract

Franchising is one way in which a company can take advantage of India's vast market with a degree of control that other traditional forms of distribution cannot match. However, there are no laws enacted solely for the purpose of regulating the growing business of franchising in India, even though many nations across the world have enacted such laws. The result is that when franchisors enter India they are governed by a number of different statutes and codes rather than a single comprehensive enactment. A well-defined legal structure is indispensable for the effective functioning of any business operation. The lack of a comprehensive legislation on franchising in India leads to the applicability of multiple laws to a franchise transaction. India must develop the foresight to view franchising industry as generator of widespread employment and revenue and to provide a congenial legal and business environment for profitable franchising relations.

Keywords: Franchising business, impact on Indian economy, legal framework, lack of particular legislation

JEL Classification: K2

Suggested Citation

Chakraborty, Rahul, Franchising in India - The Road Ahead (January 31, 2009). Available at SSRN: https://ssrn.com/abstract=1335868 or http://dx.doi.org/10.2139/ssrn.1335868
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