• Examine your opportunities: choose the franchise that best suits your temperament and resources.
• Examine the franchisor and franchise: gather as much information as you can about the franchisor, which is possible only by asking the right questions.
• Analyse and evaluate your options: franchisor`s answers to your questions, information gathered from the disclosure statement and a one-to-one interaction between the franchisor and the franchisee will form the basis of analysis.

Franchise advantage
What is the advantage of a franchise business over other businesses?

Well, if you have opted for a franchise business, you may have a reason for doing so. I can spell out a number of powerful incentives that may motivate you as a prospective franchisee to take up this business. Out of the many advantages, some are:
• Time-tested success which is a result of years of trials and errors.
• You are a part of a team rather than in an individual business, so help from experts in the business is imminent.
• The reward of profit or personal gain is a strong incentive for the franchisee. Return and reward on your investment will compensate for your time and money invested.
• Independence in this business is based on standardised procedures. This is especially beneficial for salaried people who leave their jobs to get into a business.
• Owning your own business is the greatest satisfaction - the satisfaction of enjoying the fruits of your hard work is an indescribable pleasure.

Franchise agreement
On what legal parameters is a `franchise agreement` drafted?

A franchise agreement is essentially the very basis of defining the franchise relationship between the franchisor and the franchisee. The legal agreement which governs the relationship is termed as a franchise agreement. In the absence of any well-defined specific legislative enactment or rules governing franchising in India, it is of paramount importance that the franchise is structured in such a manner, that it fits around the rules and regulations that best protect the interest, rights and obligations of the parties to the agreement. Prior to entering into a customised franchise agreement, one needs to ensure that the agreement aims at the following:
• Defines and describes the rights of the parties
• Sets the framework for the conduct of the parties to the relationship
• Regulates the relationship between the franchisor and the franchisee
• Monitors quality and standards
• Protects the Intellectual Property
• Offers protection and recourse to the franchisor and the franchisee against breach of agreement by either party

Franchisor`s obligations
What are the typical clauses that govern a `franchisor`s obligations`?

The typical clauses which govern a franchisor`s obligations are:
• Disclosure of business system
• Defining the start-up procedure
• Not to derogate from the commitment of providing the franchisee with the business traits
• Supply of training
• Supply of ongoing support to the franchisees
• Consultation with franchisees
• Availability of key franchisor personnel to the franchisee
• General advertising
• Maintenance of Intellectual Property