Why franchising in India is not like in developed countries?

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Why franchising in India is not like in developed
countries?
India is the second-largest populated country
globally and the world's knowledge capital. There
is huge potential for big brands to open shops in
India to give the best products to meet the huge
purchasing power of the people. But, franchising
in India has yet to spread its wings to
many parts. A few franchises like KFC,
McDonald's, Subway, and others are available
in metro cities and other high- growth
cities across India. However, franchising foreign
brands into joint ventures with Indian companies
is part of the FDI or foreign direct investment
policy. But still not having enough franchising
rules and regulations in India, it is yet to grow
like in developed countries to use its full
potential of 138 billion people's buying power.
But it is contrary to the easy filing of a
trademark internationally. So, let us check the
existing franchising in India framework and the
new changes for it to increase, like in
developed countries, along with the benefits
of filing trademarks under the Madrid
protocol. What is Madrid's protocol for filing a
trademark internationally?
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• Trademarks are vital in this globalized and
  digitalized world to identify products from
  recognizable designs, signs, and expressions.
  They are part of the intellectual property for
  an individual or a business organization to
  own to differentiate products from specific
  sources. It is vital for filing a trademark
  internationally to have the right over such
  important trademarks or service marls. Madrid
  Protocol system is the most cost-effective
  and convenient solution to register
  trademarks worldwide. It reduces the costs,
  efforts, and time for filing trading
  registrations in 128 countries as a single
  application in the Madrid system. It is enough to
  have the protection of the governments for the
  128 countries to the trademarks registered in any
  of the countries, including India, which is part
  of the Madrid system.
• Evolution of franchising in India
• Franchising in India got metamorphosed after
  the opening up of the economy during the
  early 1990s. In the last three decades,
  many franchisee businesses opened shops
  across India with domestic and foreign
  signages, trademarks, merchandising, and slogans
  to become common in the Indian landscape. But
  with the increased growth of franchising in
  India, there are no legal framework
  improvements for it to rise more like in the
  developed countries. There are over 34
  jurisdictions as of February 2020 with some
  form of franchise-specific rule or
  regulation in India. It requires delivering of
  disclosure document to the prospective franchisee
  before buying the franchise. The franchisor
  should sign a joint venture as per the Companies
  Act 2013 and comply with the FDI policy. All of
  it makes franchising in India grow as in
  developed countries, even after rapid
  globalization and digitalization in the past
  three decades.
• Steps to take for increasing franchising in India
• Franchising in India could increase FDI or
  foreign direct investment, and hence there
  should be many steps like
• The franchise agreements should incorporate new
  conditions favoring the franchisor and
  franchisee.
• The upfront fees payable to the franchisor by the
  franchisee should get regularized.
• The term for the franchisee should have a
  specific period and not without
• minimum or maximum terms.
• The termination rights should include many
  clauses as per the rights and ownership of the
  franchisee's business.

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• Provide proper dispute resolution for the foreign
  franchisor and the Indian franchisee to resolve
  amicable issues.
• The above facts and steps will surely help
  franchising in India increase like in
  developed countries, using its vast
  potential and buying power for increasing
  foreign direct investments.
• Visit https//www.obhanandassociates.com/ Mail
  email_at_obhans.com
• Mobile Number 91 1140200200
• Address N - 94, Second Floor, Panchshila Park,
  Block N, New Delhi, 110017, India