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Franchise or Franchising

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Laws and Legal Compliances applicable upon Foreign Companies for Selling their Food Products and Beverages in India: Lawyers Advice

One of the fastest growing industries in India is food and beverage. A large part of the industry consists of import and export of food products along with the local produce and its multi-tier wholesale and retail.Laws Governing Food and Beverages: -While Section 3 of the Food and Safety Standards Act, 2006 covers the definition of food business, Section 31 of the Act lays down rules for the Licensing and Registration of Food Businesses in India.A food license from Food Safety and Standards Authority of India needs to be obtained by every food business owner including a petty vendor/ hawker. There...

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Legal Steps to Terminate a Franchise Agreement: Lawyers Advice

A franchise business is a quick way to get into the market and beneficial for both the parties in the Franchising agreement i.e. Franchisor and the Franchisee. The franchisee gets instant recognition, resources and established market and on the other hand, the franchisor gets royalties, vast reach and better business prospects by reaching different target countries.However, sometimes the situations are not as it was expected before or there has been some change in the minds of either of the parties in regards to the Franchising pact. Legal Implications of Termination vs. Non Renewal of the Franchise Agreement: In franchising business both...

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Legal Solutions for Franchisor against Under-Billing & Under-Reporting of Sales by a Franchisee: Lawyers Advice

Franchisee under-reporting is when the franchisee does not report the exact income or sales than what he actually earns so that the accountability of lesser money will be less. The Courts have little sympathy for franchisees who fail to report all revenue making the franchisor suffer wrongful loss. Legal Steps to reduce Under-reporting and under-billing by a FranchiseeIt boils down to these critical steps: • Track data regarding third-party delivery: Third party aggregators generate more data for your organization. • Centralized Data within the Point of Sale (POS):.Centralized data storage allows for increased use of...

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Legal Solutions for Franchisor to Recover Unpaid Franchise Royalty fees: Lawyers Advice

Franchise agreements benefit the franchisees by providing with well established recognition of the business. But there is a price to pay quite literally. The initial license fee is paid along with regular royalty fees which can be weekly, monthly quarterly or even yearly that depends upon the mutually decided term. Four legal steps to be taken by the franchisor on default of royalty payment:The following steps should be undertaken to recover unpaid franchising royalty fees in case of default by franchisee: • Negotiation should be the first step to approach the problem of default of royalty payment. The...

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Legal Solutions to Franchisee for facing Lack of Ongoing Support & Quality Management from the Franchisor: Lawyers Advice

In any business a company may have an objective of increasing profit margin by engaging in activity which would reduce the expenditure or increase the revenue. Due to the company’s goal sometimes franchisees suffer a great deal by not getting adequate support from the franchisor’s end. Many franchise agreements are made a certain way which is silent or contains fewer provisions about franchisor’s obligations but many obligations on the franchisees. This makes it tough for the franchisee to prove that there had been lack of support by the franchisor which violates the rights of the franchisee. It becomes difficult for...

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Laws & Legal Compliances for Companies selling Hand Sanitizers in India: Lawyers Advice

Due to the outbreak of the COVID-19 disease, India has seen a huge increase in demand for hand sanitisers. While no company should be celebrating the disease in favour of profits gained, there’s no denying that companies distributing hand sanitisers in these times are benefitting a lot from this increase in demand. As a result, the market for hand sanitisers is becoming more and more attractive for new companies to enter. Considering the consistent recommendations by medical authorities that hand sanitisers with alcohol in them will be the most effective in maintaining hygiene in these times, it’s not surprising that many...

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Laws & Legal Compliances for Companies selling Face Masks and Face Shields: Lawyers Advice

With COVID-19 spreading every day, the need for face masks and face shields has grown exponentially in the last two months. With an emphasis on preventing community transmission, wearing a face mask or face shield has become a necessary precaution for anyone stepping out of their house. Manufacturers and marketers have recognised that fact and are all cashing in on the market that face masks and face shields currently have with new companies claiming they are entering the production for these protective products as well. In such a scenario, the question arises on what laws and regulations should these companies take...

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Foreign Direct Investments (FDI) in E-Commerce & Dropshipping in India-2: Lawyers Advice

Company Registrations, Licenses and Permits which are to be procured:An e-commerce entity can be set up as a private or a public limited company, or a sole proprietorship, or a cooperative, or a limited liability partnership. The required documents vary depending on the type of entity chosen to do business in. But some of the basic important documents required for any e-commerce or drop shipping company are: • Company Incorporation • Director’s Identification Number (DIN) from the official website of Ministry of Corporate Affairs • Permanent Account Number (PAN)...

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Foreign Direct Investments (FDI) in E-Commerce & Dropshipping in India-1: Lawyers Advice

Entering the Indian Market: • Foreign E-commerce or a drop shipping companies can enter the Indian Business Market under Direct and Indirect way: a) Direct way: The direct way for a foreign e-commerce company to enter into the Indian market is through Foreign Direct Investment. 100 per cent FDI is allowed in e-commerce companies operating in single brand retail trading. Along with this it is also necessary for these companies to operate in the market place model only which acts as a facilitator between the buyers and sellers. The FDI policy prohibits...

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Foreign Direct Investments (FDI) in Media & Entertainment in India-2: Lawyers Advice

Company Registrations, Compliances, Licenses & Permits to be procured: • Uplinking License requirement for businesses of uplinking television channels from India. • Downlinking License requirement for businesses of downlinking television channels from India. • License for setting up and operating of Direct-To-Home (DTH) services in India. • Licenses regarding Intellectual Property Rights (IPR) like Copyright, Trademarks, Patents, Trade secrets, etc. must be procured to ensure compliance with the regulations and policies. • Certificate from the Central Board of Film Certification (CBFC) or...

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