The legal challenges

With no rules or laws promulgated in India to address the functioning of franchisors and franchisees, the Indian Franchise Association (IFA) organised a unique, much coveted, one-of-its kind, one-day workshop on the subject ‘Legal Challenges to Franchising & Brand Protection’ at Hotel Ramada Plaza, New Delhi, on June 20, 2009.

The objective of the workshop was aimed at exploring and addressing the legal challenges being faced by franchise businesses in India. Mr Jidesh Kumar, Managing Partner, King, Stubb & Kasiva, took up much of the day giving insights on the various legal aspects of Franchise Agreement and Contractual Aspects, Intellectual Property and Brand Protection practices in franchising. In addition, he covered issues related to legal compliances, disclosure document and real estate issues, dispute settlement and arbitration.

In his welcome address, on the opening of the workshop, Col (Retd.) Upendra Sachdev, Executive Director, IFA, gave an overview on ‘Franchising and Researching a Franchise’. Colonel Sachdev said that “Nations across the world have enacted franchise laws, immensely benefiting the franchise fraternity. However, in the absence of franchise laws in our country and to highlight the legal issues affecting our franchise fraternity, the IFA has organised the workshop inviting Mr Jidesh Kumar, an eminent speaker, to speak at the seminar.”

The knowledge conveyed at the session was invaluable and would go a long way in assisting entrepreneurs in running a franchise business more effectively. The speaker provided thought-provoking ideas, strategies and solutions, tremendous professional support and full context of information to enable entrepreneurs and franchise owners to understand the legal issues of businesses.

The seminar catered to a wide range of audiences and provided a comprehensive tour of key legal areas. There was knowledge value for everyone; from a franchisor to a franchisee, and for those who wished to become a franchisee to those planning to start a franchise. The areas broadly covered were franchise agreement, franchise fee, programme design and conceptualisation of a franchise programme, operational manual, advertisement clause, international franchise, safeguard of interest, non-disclosure document, due diligence, territorial rights, terms of the agreement, advertisement cost, disclosure document, trademarks, trade names, IP, service marks and hidden costs in buying a franchise

The speaker’s presentation was dynamic, compelling and highly content rich. Case studies on various companies were discussed. The event ended with a CEO Forum, the objective of which was to provide a forum for legal experts, in a peer group setting, to share their experiences and insights helping each other run a problem-free franchise, to expand the knowledge of the association’s members and delegate, to create a confidential, one-on-one setting wherein legal issues of a franchise company could be discussed freely with candor and to help networking.

While replying to questions, the speakers laid particular stress on the need for having a proper documentation in place before entering into an agreement and levy of franchise/renewal fee. Due stress was also given on pilot testing.

The official presenters of the seminar were Global Classrooms Pvt. Ltd. running under the banner of ‘Nurture World Schools’ (NWS) and Nurture World Pre Schools, Lucknow, a brainchild of Dr Sunita Gandhi. The schools are built on years of experience of the Gandhi family, the founders of CMS – City Montessori School, Lucknow, since 1959. It is the first school to be the ‘World’s largest City School’ according to Guinness World Records.