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A franchise agreement is a contract under which the franchisor grants the franchisee the right to operate a business, or offer, sell, or distribute goods or services identified or associated with the franchisor's trademark.
The Franchise Rule gives prospective purchasers of franchises the material information they need in order to weigh the risks and benefits of such an investment.
Indiana is a franchise registration state. Under Indiana's Franchise Act, before you offer or sell a franchise in Indiana, you must file and register your FDD with the Securities Division of the Indiana Secretary of State. The initial FDD registration fee is $500 and the annual renewal fee is $250.
The Indiana Franchise Act defines a franchise as ?a contract by which a franchisee is granted the right to engage in the business of dispensing goods or services, under a marketing plan or system prescribed in substantial part by a franchisor; the operation of a franchisee's business pursuant to such a plan is ...
These legal documents, along with the operating manuals, staffing, training programs, and marketing initiatives, are your main investments in the franchise system. The two primary documents you'll create are the Franchise Agreement and the Franchise Disclosure Document (FDD).
But in India, there is no specific Law that governs the franchise business. There is no Law that governs the Agreement for franchise operations between a Franchisor and Franchisee. No separate Laws have been enacted to also govern non-disclosure, termination, or preparation of documents related to the business.
The Franchise Rule requires franchisors to make material disclosures in five categories: (1) the nature of the franchisor and the franchise system; (2) the franchisor's financial viability; (3) the costs involved in purchasing and operating a franchised outlet;
Indiana is a franchise registration state. Under Indiana's Franchise Act, before you offer or sell a franchise in Indiana, you must file and register your FDD with the Securities Division of the Indiana Secretary of State. The initial FDD registration fee is $500 and the annual renewal fee is $250.