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

Franchising has emerged as a significant business model facilitating rapid commercial expansion and entrepreneurial growth across the globe. It enables franchisors to extend their brand presence while allowing franchisees to operate under an established business system. However, franchise relationships are often characterized by unequal bargaining power, complex contractual terms, and limited regulatory oversight in several jurisdictions. This research undertakes a doctrinal study of the legal framework governing franchise agreements with particular emphasis on the rights and obligations of franchisors and franchisees. The study examines the historical evolution of franchising, key challenges faced by franchisees, and the adequacy of existing legal mechanisms. A comparative analysis of franchise regulation in selected jurisdictions such as the United States, European Union, and India is undertaken to identify best practices and regulatory gaps. The research also analyses relevant legislation, judicial pronouncements, and scholarly literature to evaluate the effectiveness of current legal protections. The study concludes with findings and suggestions aimed at strengthening transparency, ensuring contractual fairness, and promoting balanced franchise relationships through suitable legal reforms.
Keywords: Franchise Agreement, Franchisor, Franchisee, Disclosure, Comparative Law, Legal Framework