Sustainable Franchise Practices: Eco-Friendly Solutions for Gurgaon Entrepreneurs

Franchise Lawyer in Delhi | Franchise Lawyer in Gurugram | Franchise Lawyer in Noida | Franchise Lawyer in Delhi NCR | Corporate Lawyer in Delhi | Corporate Lawyer in Delhi NCR | Corporate Lawyer in Gurugram | Corporate Lawyer in Noida | Legal Tips for Franchise Business in Delhi | Legal Tips for Franchise Business in Gurugram | Legal Tips for Franchise Business in Delhi NCR | Sustainable Franchise Agreements in Delhi | Sustainable Franchise Agreements in Delhi NCR | Sustainable Franchise Agreements in Gurugram | Sustainable Franchise Agreements in India | Franchise Solutions for Entrepreneurs in Delhi | Franchise Solutions for Entrepreneurs in Delhi NCR | Franchise Solutions for Entrepreneurs in Gurugram | Franchise Solutions for Entrepreneurs in India | Corporate Lawyer in Chandigarh | Franchise Lawyer in Chandigarh |

In ensuring the prosperity of our future generation, it is paramount to adopt sustainable practices that promote the environmental advancement and secure ample resources for meeting their needs. Following the path of sustainable growth is not only a style statement but the need of the hour as well. It has two-fold benefits, i.e., on the one hand, the consumer of today prefers those businesses which not only focus on profit but also care about their surroundings, and on the other hand, the businesses will also be benefitted from following the practices of sustainable development. No doubt the benefits of sustainable practices yield benefits in the long term and require significant investment as well, which would be somewhat difficult for small franchises, but once all these hurdles are passed, it will be smooth and efficient growth.

So, let us first discuss some of the effective sustainable practices in franchise agreements:
• The franchises of today adopt eco-friendly technologies and practices to reduce their environmental footprints. This helps the franchise lower their energy consumption through traditional energy sources and also reduces the cost of operations in the long run. Apart from this, franchises nowadays have started using recyclable or biodegradable utensils, packaging materials, and containers for storing their products. For example, Domino’s and KFC have made significant efforts to reduce unwanted packaging in their supply chains, reduce single-use plastic, and promote the use of plant-based plastics.
• The franchises make efforts to ensure that their supply chain remains sustainable, and for this, they try to get their resources from responsible traders who are locally sourcing the goods for them. Responsible traders are those who adhere to fair labour practices and guarantee that the raw materials are sourced in an eco-friendly manner. And by sourcing the goods locally, the franchises contribute by reducing the carbon footprints which would be associated with transportation emissions. Fabindia is an Indian brand dealing with home-decor, furnishings, fabrics and products made by craftspeople across rural India. The franchises, through this technique, help sustain rural employment in India and strengthen the local artisans and craftsperson.
• Certain franchises are nowadays transitioning to renewable energy or green energy sources or initiatives. The franchises having potential to make huge investments install solar panels or wind turbines to generate their own green energy. This helps to reduce their dependence on fossil fuels and lowers the emissions of greenhouse gases into the atmosphere. However, there are many franchises that cannot generate their own green energy; thus, they have the option to buy this green energy from renewable energy certificates (RECs). Amul is fulfilling a significant portion of its energy requirement by installing solar cells on its factories rooftops and generating biogas from its effluent treatment plant to fuel its boilers.

Of course, there is no doubt that the journey towards sustainability is important for every business, but not every business is successful in its initial attempts to make its processes sustainable.

There are a lot of challenges which franchises face while implementing sustainability practices in their operations; a few of them are discussed below in detail:
• The most common hurdle which hinders franchises from adopting sustainable practices is their financial capacity. Implementing sustainable practices requires significant investments in the initial stages, and thus, for small franchises which do not have enough capital, this becomes a barrier to their sustainability journey.
• Some franchise owners lack the vision to see the importance of sustainable practices in their businesses due to a lack of awareness or proper understanding, and thus, convincing them to adopt such practices becomes a challenging task.
• The franchises can be opened in any part of the world, which means that different franchises function in different areas with a diversity of resources, environments, habits, regulations, etc. This diversity becomes a challenge for the franchise, as ensuring the uniformity of sustainable practices at all the locations of the franchise is a complex task. This diversity in different locations hinders the franchises from making such efficient decisions with immediate effect.

Even after all these challenges, the franchises still make efforts to take this route of sustainability because of the benefits attached to it.

A few of the benefits of sustainability in franchising are as follows:
• The environmentally conscious consumers of today are much more attracted to brands that adopt sustainable practices. Meeting these expectations of their customers ensures that the franchise has built a loyal customer base for its business. And more the loyal customers, the better the brand’s reputation. This gives the brand a competitive edge over its competitors and consistent growth in their market segment.
• There is no doubt that there involves a significant initial investment in running the sustainability practices in the franchises, but that frequently result in savings in long-term. Decreasing waste, reducing energy-efficient technologies, and practicing efficient resource management can significantly reduce operational expenditures and enhance overall profitability.
• With time, at the national and international level, various agreements and covenants are formulated, which lead to necessary compliance of environmental protection regulations. The franchises, for the smooth functioning of their operations, have to comply with these covenants, and this also protects them from potential fines and other legal issues associated with such non-compliance. Some examples of international covenants are the Paris Agreement (2015), the Kyoto Protocol (1992), and the Convention on Biological Diversity (1992), which aim to reduce greenhouse gas emissions and promote conservation of biological diversity while ensuring sustainable sourcing of its resources.

Framing a sustainability clause in the franchise agreement is very crucial, as this ensures that like-minded franchisees only get the franchise, and they also promote into this journey of sustainability. This makes the green progress a cake-walk and prevents any disputes later on.

A few practical tips to remember while drafting a sustainability clause are discussed below:
• The roles and responsibilities of both franchisors and franchisees should be clearly defined in a franchise agreement. The roles shall prescribe the practices which are to be followed while conducting the operations of the franchise, and timely updates shall be shared, which increases its accountability and transparency.
• Regular audits and monitoring shall be made of the sustainability standards, and the reports of these shall be discussed periodically to take more effective steps and remove inefficient processes.
• Targets shall be set in measurable terms, and accordingly, rewards shall be awarded for their fulfilment. These targets revolve around reducing energy consumption, waste generation and greenhouse gas emissions, and their progress shall be timely checked.
• Established certifications and standards like LEED and B Corp certification be adopted, which can legitimize a franchise’s sustainable strategies. These certifications offer third-party affirmation and boost the credibility of the franchise’s sustainability initiatives.

In conclusion, it is imperative to say again that incorporating sustainability clauses and sustainable practices into a franchise is a crucial step towards building a more sustainable franchise business model. Despite having numerous challenges in its implementation, this trend of sustainability is becoming popular, and the trend is increasing day by day. And there’s no doubt in saying that without following sustainability practices in the operations, no franchise would be able to go a long way.
Authored by: Adv. Anant Sharma & Sahil Arora

#SustainableFranchises #EcoFriendly #GurgaonEntrepreneurs #GreenBusiness #Sustainability #EnvironmentalCompliance #EcoSolutions #DelhiNCRUpdates #ChandigarhBuzz #IndiaBusiness #DelhiLife #GurgaonBusiness #ChandigarhMoments #IndiaBiz #NCRUpdates #SustainableBusiness #EcoFriendlyFranchise #GurgaonEntrepreneurs #GreenSolutions #LegalSupport #SustainableGrowth #EcoFranchise #EnvironmentalResponsibility #GreenBusiness #GurgaonFranchises #SustainablePractices