Franchise Business
Querist :
Anonymous
(Querist) 27 March 2011
This query is : Resolved
Dear Sir,
I am successfully running a footwear brand and I would like to expand my business through giving franchises. I want to know is it possible to have many people for a single franchise. I mean if the total required amount for setting up a franchise outlet is 10 lacks is it possible to collect ten thousand each from 100 people. What should be the agreement like and what is the legality of such transactions or agreement.
Regards,
Ashok.
R.Ramachandran
(Expert) 28 March 2011
Dear Mr. Ashok,
According to you minimum amount required for setting up a franchise outlet is Rs. 10 lakhs. in other words, you will grant franchise to a unit and not to individuals. Therefore, whether 100 or 1000 persons come to gether under one name - either as partnership or private limited company or whatever - then and then only you will be granting the franchise right to that Unit and not to individuals. So, where is the question of your signing the franchise agreement with 100 or more persons. If at all, you will be signing the franchise agreement with the Unit concerned, represented by the Unit's authorised representative.
