AN OVERVIEW OF THE EXISTING FRANCHISING LAWS AND PRACTICES: SCOPE OF FRANCHISING IN INDIA

Abstract

The franchise industry in India has been increasing over the past few decades. With this growth, it has become increasingly important to understand the legal framework governing the franchise sector in India. The primary laws that regulate franchising in India include the Contract Act of 1872, the Trade Marks Act of 1999, the Competition Act of 2002, the Consumer Protection Act of 1986, and the Foreign Exchange Management Act of 1999. These laws aim to protect the interests of both franchisors and franchisees and provide a framework for forming and operating franchise relationships. The Contract Act lays down the basic principles of contract law, including the formation and enforceability of contracts, while the Trade Marks Act governs the protection of trademarks in India. The Competition Act regulates anti-competitive practices in the market, while the Consumer Protection Act protects consumers' rights in the franchise sector. The Foreign Exchange Management Act regulates the flow of foreign exchange in India. In conclusion, the franchising laws in India provide a comprehensive framework for the growth and development of the franchise sector in India while protecting the interests of both franchisors and franchisees. This paper critically evaluates different franchise laws prevailing in India and explains the scope of franchising in India.