All you wanted to know about franchising in India

Your search to know all about franchising in India ends here. After the US, India is the second-largest franchise market worldwide. Over 1.7 lakh franchisees operate over 2,00,000 outlets for 4,600 franchisers all over India. With its diverse and vast potential of 1.38 billion people, India offers wide opportunities for entrepreneurs to start franchise businesses. And franchisers worldwide want to tap this potential to expand their business into India’s many cities and towns. For example, domino Pizza, which started with one outlet in 1996 when pizza was new to India, now has over 1,500 outlets in 325 cities. Also, the copyrights, which skyrocketed to nearly 20,000 during 2017-18 from less than 5,000 in the previous years, are now steady at around 15,000 per year.  

So, let us check out all about franchising in India and the copyright law in India to safeguard your intellectual property from others selling, licensing, or reproducing it. 


What copyright law in India safeguards intellectual property rights? 

You need copyright to protect you if you are a creator of new literary, dramatic, artistic, sound recording, cinematograph film, computer programs, databases, and other work. To safeguard intellectual property rights, India is a member of the Berne Convention, 1886, and the Universal Copyright Convention, 1951. Hence, work created in India and any member country of the above convention has copyright protection. Getting the copyright for published and unpublished works prevents others from using it unlawfully. The Copyright Act 1957 t confers copyright protection for authors’ economic and moral rights. Many sections of the copyright law in India protect the ideas and original work of authors, artists, and others.  


Why is franchising in India on the rise?

India is a vast country, with most of the population living in rural areas. Though it is considerable potential, reaching them needs significant investments in money, human resources, and raw materials. Franchising in India has become popular among thousands of franchisers worldwide to tap such huge potential overcoming the many challenges. As per Franchise India, franchising has been growing around 40% in the last few years to have a turnover of approximately 1,000 billion. The franchising sectors in India include hotels, healthcare, retail, education, medical services, beauty and fitness, and the, most important of all, food and beverages. Even COVID-19 offered a plethora of opportunities to use technology at local levels. It is because of India’s dynamic consumer market-creating space for competitive franchises to sustain and succeed as the rising income of the people is increasing the demand for foreign brands. Also, India offers many franchise options for franchisers like a direct, master, regional and local incorporation to spread wide and far to tap the huge potential. Hence, franchising in India is continuously on the rise and to only increases in the future. 


What are the factors affecting franchising in India?

Not having comprehensive laws for franchising is one of the significant factors affecting it in India. Though many laws define franchise and franchisee relations in India, and the Trade Mark Law 2017 enables fast and simple trademark registration, more laws are essential. Also, franchisers with direct investments fall under the FDI of foreign direct investments category to follow stringent rules. 

The best law firm in India can help franchisers start franchising in India to improve self-employment and other benefits.

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