FACTORS to Consider While Writing Franchise Business Plan in India

1
FACTORS to Consider While Writing Franchise
Business Plan in India
2

• The contract is the key piece that regulates the
  legal relationship between the franchisor and the
  franchisee. Know all the details of this
  important legal document. Every good entrepreneur
  knows how beneficial it can be to bet on a
  franchise system. Therefore, this is a business
  model that is very popular in the world.
  (BBGV211120)
• The reason for its reputation It is that it is
  seen as a guarantee of almost certain success.
  When an entrepreneur invests to become a
  franchisor, he pays for the right to faithfully
  reproduce an already proven brand with a good
  number of captive customers.
• A key factor to start in this business It is the
  franchise contract, a fundamental piece that
  regulates the legal relationship between the main
  actors in this business the franchisor and the
  franchisee. Therefore, it is essential that you
  inform yourself about this important factors and
  here we will answer the most common questions
  that arise in this regard
• How important is the franchise agreement? It is
  possible to say that the franchise agreement
  represents the core of the relationship
  established between the franchisor and the
  franchisee. Its content perfectly stipulates all
  the actions that must be carried out while the
  contractual relationship between the parties
  lasts, as well as the sanctions for
  non-compliance or violation of the agreed upon.

3

• Is there a pre-established franchise agreement
  format? It cannot exist, since each franchise has
  its own technological locks and competitive
  advantages, a situation that makes them different
  even with the franchises of the same line of
  business. Think of the franchise agreement as a
  "tailored suit", so it is worth noting that
  copying a foreign franchise agreement does not
  work either, as it does not suit the legal market
  in your country.
• Do I have to pay any advance prior to signing the
  contract? No advance must be paid before the
  contract is signed, since there is no formal and
  legal commitment to demand any prior payment. In
  the act of signing the franchise contract is when
  the agreed payment of the initial franchise fee
  must be made.
• Is the franchise agreement limited in force?
  Indeed, it is valid and it is established
  according to the recovery of the total investment
  and at the same time, so that the franchisor has
  the opportunity to analyze if the performance of
  the franchisee is carried out according to the
  parameters established in the contract , manuals
  and training, as well as for the franchisee to
  analyze whether the franchisor's behavior was as
  agreed.
• At the end of the term of the contract, do I have
  to pay a fee to renew it? Not in most cases,
  unless it is stipulated in the franchise contract
  at the time of signing by both parties.

4

• What documents must be delivered to me prior to
  signing the contract? In addition to all the
  information regarding the franchise, the delivery
  of the Franchise Offering Circular (COF) is
  mandatory. This document aims to make known to
  the prospective franchisee the most relevant
  information about the franchise, as well as
  technical assistance, who or what people grant
  it, Performa statements (not mandatory), list of
  franchisees in operation and, in most cases, a
  copy of the franchise agreement. To receive this
  document, the franchisor requires the franchisee
  to sign a confidentiality letter, as the document
  contains industrial secrets and technological
  locks of the franchise.
• What documents must I receive at the time of
  signing the franchise agreement? The manuals
  (know-how), the zoning plan (if the acquired
  franchise requires it), the construction project,
  remodelling or adaptation of the premises, the
  invoice for the payment of the initial franchise
  fee (franchise fee), the program training and
  training and of course, a copy of the franchise
  agreement, among the most important.
• A key factor to start in this business is the
  franchise contract, a fundamental piece that
  regulates the legal relationship between the main
  actors in this business the franchisor and the
  franchisee so make sure to consider all the above
  factors when you enter in franchise business in
  India.
• CONTACT Us
• 450, Mastermind 1, Royal Palms, Aarey Colony,
  Goregaon (E), Mumbai, Maharashtra 400065
• Ph 91 8097027355, 91 9137256150, 91
  9222086563
• Visit http//businessplansmentor.com/
•  
•