Health and Wellness Franchise Agreements: Legal Essentials for Delhi Businesses
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The consumer of today has become very selective with regard to the choices he makes, and today’s consumer is very particular when it comes to the choices related to his health. It can be noticed that people nowadays don’t hesitate to spend a little more if they know they will get a better and healthier alternative. Apart from this, people spend a lot on maintaining their health and maintaining a work-life balance, for which they willingly spend a significant portion of their income on certain services like gyms, regular health check-ups, organic food, dieticians, etc. This brings a lot of opportunities for various businesses and franchises to grow themselves and target such health-freak consumers.
The awareness of people has shifted nowadays towards holistic wellness and personalized healthcare, and many franchises have understood this shift and acted on it, which is discussed in detail below:
• Consumers focus on complete and comprehensive wellness solutions, which include physical, mental and emotional health. Along with traditional medical treatments, new methods such as ayurveda, yoga and natural remedies are becoming the choice of today’s people, and the government of India has also supported this through their AYUSH scheme. Patanjali is one of the top brands in India which focuses on holistic wellness through its ayurvedic products and services by opening franchises in the form of Patanjali Mega Stores across the country.
• Every human body is different from one another, and thus, the way it needs to be dealt with is also different for every human. Franchises have understood this concept and have initiated providing personalized services to people as per their needs. The overall effectiveness of the health of a patient is also improved, as the franchises could tailor their services as per the specific needs of each patient. Healthians is an Indian diagnostic company which provides customized wellness plans as per the patient health profiles and offers various plans, including different services. It offers blood tests, genetic tests, X-rays and MRI scans, along with consultations with qualified doctors.
• With the emergence of new diseases, people have started taking more precautions as they know preventing an illness is more cost-effective than treating an illness. Thus, people have started to focus on approaches which seem beneficial to health, especially in cases of non-communicable diseases. Apollo Clinic is a good example of this, as they provide several health care services to cater to the day-to-day needs of individuals. They also have plans regarding health check-ups, vaccinations and lifestyle management programs.
The health sector is a very sensitive sector and requires the completion of various legal considerations. Any business which seeks to set up a franchise in this health and wellness sector shall comply with all the required permissions, regulations and licences.
Maintaining compliance ensures the protection of the interests of both franchisors and franchisees, which is discussed below:
• Operating health and wellness franchises involves complying with the required healthcare regulations. It includes obtaining necessary licences, machines adhering to quality standards, practitioners with proper degrees and certifications, and maintaining patient care and safety standards. For example, VLCC is a wellness and beauty care brand which provides various services like weight management, hair treatment, and body therapies through both the latest technologies and ayurveda. This requires every VLCC franchise to comply with several healthcare regulations, such as those outlined by the Ministry of Health and Family Welfare and the AYUSH Ministry.
• Just like any other franchise, the franchises in the health and wellness sector also have to protect their intellectual properties, like trademarks, copyrights, patents, proprietary treatments, etc. This ensures that the integrity of the brand is maintained and any misuse of its name is prevented. For example, Dr. Batra’s Homeopathy has over 200 clinics globally, treating 100+ ailments. This makes it necessary for the franchises of Dr. Batra’s Homeopathy to include in their agreement the use of IP and the consequences in case of any infringement of any IP.
• Another important legal consideration under franchise agreements is mentioning the dispute resolution mechanisms which would be chosen in case of any dispute arising between the franchisor and franchisee. It could be either through arbitration or the traditional method of litigation. For example, Curve is a women’s fitness brand that in its franchise agreement, has added clauses related to resolving the disputes, mentioned steps to resolve the conflicts and specified legal jurisdictions to avoid lengthy legal battles.
To gain the trust of consumers and patients, the franchises have to ensure that the quality of their healthcare products and services is top-notch and in adherence to the standards prescribed by the national and international organisations. This helps in building brand trust, customer satisfaction, and loyalty.
Some common strategies for ensuring quality and standardization are as follows:
• Quality check-ups can be ensured through both inner and outer mechanisms, such as regular inspections, performance reviews of healthcare providers, and customer feedbacks. This will have a two-way effect, i.e., on the one hand, the healthcare staff will be under continuous fear of vigilance and thus will work property, and on the other hand, the patients will be offered a quality treatment. For example, Dr. Lal PathLabs conducts periodic quality reviews, including clinical audits and customer feedback assessments, upholding high standards in diagnostic services.
• Distributing quality healthcare to remote areas is a need of the hour, and is becoming a reality with the integration of telemedicine and digital health tools. The government is also on a mission to enhance the accessibility and convenience of healthcare services in India in an efficient and responsive manner. 1mg is a popular health platform in India which has integrated these telemedicine services into its franchise model. Along with this, they also provide remote consultations and digital health tools which align with the patient’s needs.
• Providing ongoing training to the healthcare staff ensures quality in the service they provide. Thus, regular training sessions regarding the use of the latest technologies, the latest fitness techniques, and information on banned medicines, be provided to ensure quality and consistent service across all franchise locations. For example, Anytime Fitness is a gym franchise which has 100+ gyms in India and has trained and certified trainers for their customers. Regular training is very important in such franchises, as they directly deal with the customers physical health and thus make it necessary for them to be updated with the latest fitness techniques and technologies.
The health and wellness sector is rapidly evolving, and the demand for this will only increase in the future. Thus, the franchises in this sector have a very bright opportunity to capture the market in different areas. Compliance with the regulations is necessary, and proper safety measures must be employed while dealing in this sector. A proper follow-up of all these rules will surely bring the franchise to greater heights as compared to its competitors.
Authored by: Adv. Anant Sharma & Sahil Arora
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