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Corporate licensing and franchising

We conduct necessary liaison works on behalf of our clients in the matter of getting license and permits from local Government authorities and other Governmental bodies and also from Goernment Boards like pollution Control Board etc. Here also we offer our services side by side with that of the competent and technical experts of the professionals in our panel.

Licensing and legal forms are needed in every important circle of human activity.  A hastily selected or wrongly drafted/formatted license deed can land you in trouble one need to be extremely cautious and careful in dealing with licensing deeds.

Similarly when it comes to franchise, it is a special privilege to do certain things confused by government on individual and corporation.  In commercial word, it is a privilege granted or sold such as to use a name or to sell products or services. The right given by a manufacturer or supplier to a retailer to use his products and name on terms and conditions mutually agreed upon.  In its simplest form, a franchise is a license from owner of a trademark or trade name permitting another to sell a product or service under that name or mark. In its broadest form in consonance with present day business structure, the concept of franchise has evolved into an elaborate agreement under which the franchisee undertakes to conduct a business, or sell a product or service in accordance with methods and procedures prescribed by the franchiser.  The franchiser usually undertakes to assist the franchisee through advertising, promotion and advisory services.

The basic elements of franchise are as under:

An entrepreneur (the franchiser) develops a workable system of doing business and grants another entrepreneur (the franchisee) the right to use this system.
Both the parties are legally and financially independent enterprises.  The franchisee invests his own money and takes the risk of losing the money; it has invested if the project/business venture were unsuccessful.
The granting of the right to use the franchise system involves the right and privilege of the franchisee to use the franchiser’s Intellectual and Industrial Property, knowledge, business and technical methods, procedural system and other Intellectual Property rights.
The franchisee in consideration undertakes to allow the methods elaborated by the franchiser and to pay an entrance fee and/or other royalties, the later of which are normally calculated as a percentage of the turnover.
The franchiser retains rights of control over the performance of the franchisee.
The franchiser may also undertake providing the franchisee with training and continuing assistance, as may seem appropriate.

Franchise is therefore a package with which inter alia includes:
  1. Intellectual property rights.
  2. Non-patented know-how
  3. Training and continues assistance on the part of the franchiser.
  4. Franchiser control rights vis-à-vis the franchisee and Obligations of the franchisee to follow the instructions of the franchiser, and to comply with the financial terms of the agreement.

 

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