Franchise Agreement
What is a Franchise Agreement
Franchise
is a legally binding agreement that creates the Franchise relationship between the
franchisor and franchisee. It says about the terms and conditions of the
Franchise. A franchise agreement licenses the Franchisor to start a shop or
outlet at a specific locality in the Trademark of the franchisee. This Franchise agreement or Franchise
contract authorises the franchisor to use the Brand Name, Logo, Trade Dress,
Interior Copyright and business module as designated by the Franchisee for a
limited period
Common problem in Franchise module
- · Threat of Legal consequences
- · Threat of losing a Court case against the other party
- · Relationship splits
- · Threat of predicament
- · Threat of deceive
- · False expectation
- · Managing the business
- · Working with the system
To overcome all the above difficulties, both the parties should sign a
properly drafted Franchise Agreement by a well experienced corporate lawyer.
Intellectual property and Franchise
Why a franchisee chooses for a
franchise module?, its simply because of the BRAND. The franchisor owns the Trademark,
Patents, Trade Secrets, which is the most valuable asset for every
organisation. Hence there is always a treat of misuse. There are two tools to
handle the threat, they are Trademark Registration & Franchise agreement. The
only recommendation is that the Franchisee should apply for Trademark
Registration in order to get complete protection over the Trademark. The
franchise agreement must
Elements of Franchise Agreement
- · Product details
- · Duration of Franchise Agreement
- · Territorial description
- · Training related aspects
- · Advertising responsibilities
- · Taxation
- · IPR clause
- · Termination clause
- · Arbitration
Franchise Agreement Vs. Licence Agreement
Le Intelligensia Law Firm
A.Arivazhagan
Advocate
Call: +91 9941993399
Web: http://leintelligensia.com/
Youtube: https://www.youtube.com/channel/UCiu8b2E5RFB8w2wacq5N--w
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