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Foreign Direct Investments (FDI) in Clothing & Apparel Industries in India-1: Lawyers Advice

Entering Indian Market: • Indian textile and apparel industry is one of the largest in the world with US$ 38 billion of export and US$ 50 billion of domestic textile. India has the most liberal and transparent FDI policy amongst the developing countries, making it can ideal destination for investment in textile industry. • FDI Policy in India allows 100% FDI in the textile industry through the automatic route requiring no prior approval of the Government or the Reserve Bank of India. • The investors are however, required to...

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Precautions while Executing International Franchise Agreements: Lawyers Advice

International franchise agreements tend to delay and cause annoyance to the pre-existing state of laws in the appropriate state. It can be both legal as well as commercial in nature which can turn out to be a difficult situation for the parties involved in such transaction. There are various commercial pitfalls while franchising internationally which are listed down below:Targeting the Wrong Country or Domain: Factors which should be considered while choosing franchisee’s state includes: • minimal government interference with the provisions agreed to by the parties • The capability to earn profits for the franchisor....

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Applicable Laws & Legal Compliances for Franchise Business in India: Lawyers Advice

India is at a budding stage with huge potential for the franchising industry. Over the past few years, India has attracted the interest of major international brands and their success has encouraged others to explore franchise opportunities. Some noteworthy franchise transactions in the past 12 months including the following: • Doner & Gyros (Dubai) has started franchising in India. • Italian brand Monnalisa is opening its first franchisee store in India. • British brand Simon Carter has opened multiple stores in India. There is currently no legislation which specifically regulates franchising. In the absence of specific...

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Basic Principles of International Franchise Agreements: Lawyers Advice

Each country has its own rules and regulations of the franchise model. The different law regimes are franchise-specific laws, general commercial laws or Codes of Conduct: • Franchise Specific Laws:: Franchise business laws usually mention pre-contractual disclosure, franchisor/franchisee relationships and registration prerequisites. The purpose is to protect native franchisees from their own decisions, and from being subjugated by franchisors. In many cases franchise-specific laws are protective nature. • General Commercial Laws: In some states, the franchise model is usually covered under the general commercial and competition laws. For example, the France Commercial Code is...

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Applicable Laws & Legal Compliances for FinTech Start-ups: Lawyers Advice

The government is making sincere efforts to make India digital. It has been introducing the developments in the Fintech sector because of the rapid technological advancements. Different Sources to Raise Funds for Fin-tech Start-ups: 1) Issuance of shares (equity, preference), debentures. 2) Angel investors, incubator and accelerators have shown significant involvement in start-ups. 3) Public offering and raising funds from the market 4) Crowd funding. Encouraging Investment Schemes in IndiaThe Department of Industrial Promotion and Policy has recognised 16000 start-ups and about 130 of them obtained financial assistance till February 2019. The government has launched tax benefits which include 3 years...

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Applicable Laws & Legal Compliances for Defence Tech Start-ups: Lawyers Advice

India has a powerful defence industrial base and with the boom in the technology sector. It has strengthened the military sector on a very large scale. The defence industry merged with nation’s upgraded technology is commonly referred to as Def-tech Industry. Methods undertaken by the Government:The Defence Procurement Procedure 2016 brought in some changes and introduced the category of “Buy Indian Indigenously Designed, Developed and Manufactured (IDDM)”. The government has made this category at the top of their list for the procurement of equipments. It gives special focus to the Medium and Small Manufacturing Enterprises (MSME) sector. Legislations and Procedure Applicable For...

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Applicable Laws & Legal Compliances for EdTech Start-ups: Lawyers Advice

Education Technology also referred as Edu-Tech has brought a ground-breaking alteration in the conventional system of education as to how learning is disseminated across the state. In today’s times obtaining a course or just taking extra classes, students just require a speedy internet connection and a Smartphone/ computer. The EdTech sector is taking web based learning to the next level in India and it is happening at a very rapid pace. Ten Legal Compliances for EdTech Start-ups in India: Registration as an Entity: Registering as an entity is mandatory, only then the government approves of such existence of legal entity. Protection of...

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Precautions while Executing a Franchise Agreement: Lawyers Advice

A franchise agreement is an agreement entered into by a franchisor and a franchisee to operate a franchise unit. It is a legal contract in which the franchisor consents to provide its brand and operational model to the franchisee to set up and run the similar business in another place in exchange for a fee and some share of the income generated. The franchise agreement specifies all the details regarding the contract like the rights and duties of both the parties, the fee the franchisor is supposed to pay, the duration of the agreement, the location of the franchise, etc....

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Rights & Duties of a Franchisee in a Franchise Agreement: Lawyers Advice

In a franchise agreement a franchisee is the party to whom the license to carry out business under the same brand name is granted. Just like the franchisor, the franchisee also has certain rights and duties specified under the franchise agreement. But since the franchise agreement does not have a standard format and varies depending on the type of business, even the rights and duties of the franchisee vary from business to business. However, there are some common rights and duties that the franchisee is vested with in every franchise agreement irrespective of the type of business. Rights of...

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Rights & Duties of a Franchisor in a Franchise Agreement: Lawyers Advice

When a franchisor and a franchisee are entering into an agreement over a franchise unit, they do so by signing a franchise agreement. A franchise agreement is an agreement entered into by a franchisor and a franchisee in order to operate a franchise unit. This agreement specifies all the essential aspects of the franchise transaction like the location, operations, duration, fee, royalties etc. A franchise agreement does not have a standard format. It varies depending on the type of business and the working conditions of the franchise. However, the basic provisions of any franchise agreement are as follows: ...

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