AN ANALYSIS ON THE LEGAL FRAMEWORK OF FRANCHISE AGREEMENTS: RIGHTS AND OBLIGATIONS

AUTHOR – VEERAPPAN V* & AKSHAYA R**

* STUDENT AT VELS SCHOOL OF LAW

** PROFESSOR AT VELS SCHOOL OF LAW

BEST CITATION – VEERAPPAN V & AKSHAYA R, AN ANALYSIS ON THE LEGAL FRAMEWORK OF FRANCHISE AGREEMENTS: RIGHTS AND OBLIGATIONS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (5) OF 2026, PG. 901-904, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/V6I596

Introduction

One of the best business development strategies is franchising, which enables entrepreneurs to operate under well-known brand names while facilitating quick company growth. A legally binding contract that outlines the responsibilities and rights of the franchisor and the franchisee is called a franchise agreement. Important areas like brand usage, financial obligations, operational needs, and dispute resolution are governed by this agreement. A clear legal framework is necessary to guarantee equity, openness, and the defense of both parties’ interests given the complexity of these contractual agreements. Different jurisdictions have different laws governing franchise agreements; some have laws specifically pertaining to franchises, while others control franchising under general laws pertaining to contracts, intellectual property, and competition. Legal issues frequently come up with relation to disclosure requirements, franchisee safeguards, termination rights, and renewal agreements. Strong legal safeguards are necessary to protect the interests of franchisors and franchisees against conflicts resulting from regulatory discrepancies and power imbalances in franchise agreements. With an emphasis on the rights and responsibilities of both parties, this research piece attempts to examine the legal framework underlying franchise agreements. Important topics like the development of franchise law, the obligations of franchisors and franchisees, regulatory obstacles, and the legal ramifications of termination and renewal will all be covered. The paper aims to offer insights into effective legal practices for creating equitable and enforceable franchise agreements by examining these crucial aspects. Furthermore, suggestions for bolstering franchise regulations and advancing a fair and open franchising environment will be presented.