Franchise—India—Q&A guide
Published by a LexisNexis Commercial expert
Last updated on 11/11/2021

The following Commercial practice note provides comprehensive and up to date legal information covering:

  • Franchise—India—Q&A guide
  • 1. How widespread is franchising in your jurisdiction? In which sectors is franchising common? Are there any economic or regulatory issues in the market that are more or less hospitable to franchising or make it economically viable in your jurisdiction?
  • 2. Are there any national or local franchise associations? What is their role in franchising, including any impact on laws or regulations? Are there any rules of conduct or membership requirements?
  • 3. What forms of business entities are relevant to the typical franchisor?
  • 4. What laws and agencies govern the formation of business entities?
  • 5. Provide an overview of the requirements for forming and maintaining a business entity.
  • 6. What restrictions apply to foreign business entities and foreign investment?
  • 7. What aspects of the tax system are relevant to franchisors? How are foreign businesses and individuals taxed?
  • 8. Are there any relevant labour and employment considerations for typical franchisors?
  • 9. How are trademarks and other intellectual property and know-how protected?
  • More...

Franchise—India—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to franchise in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2021).

Authors: G&W Legal—Srijoy Das; Anup Kumar

1. How widespread is franchising in your jurisdiction? In which sectors is franchising common? Are there any economic or regulatory issues in the market that are more or less hospitable to franchising or make it economically viable in your jurisdiction?

With a population of approximately 1.35 billion people, India has one of the biggest franchise markets in the world. Several market studies estimate that the market has been growing at a rate of over 30 per cent over the past five years. The current market is valued at approximately 3.5 trillion rupees and is expected to grow at a rate of over 25 per cent year-on-year, despite the covid-19 pandemic.

In India, franchising is common in the food and beverages, hotels, healthcare and wellness, and education sectors.

India does not have any franchise-specific laws or bodies to regulate franchise businesses and franchise agreements are mostly contractual in nature. Currently, there are no perceived regulatory or economic issues that impede the growth of franchises in India, although legislation applies to any business operating in India, including franchises. The Indian Contract Act 1872, the Foreign Exchange Management Act 1999 and the Income-tax Act 1961 are

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