GD GOENKA UNIVERSITY

NAME: SAURAV YADAV

ENROLLMENT NO.: 180010201055
ADMISSION NO.: 18190547
SEM: BBA IV SEM
SUB: ENP2704
SUBMITTED TO: DR. SYED MOHD JAMAL
MAHMOOD
Q1. Legal aspect of buying business
Preliminary Negotiation:- The early stages of any
business acquisition will entail some preliminary
negotiations between the transaction such as price ,
payment terms , and legal structure of the sales.
Letters of intent : In some cases, a letter of intent can
facilitate negotiations. LOI’s are often misunderstood and
can represent significant legal risks. Many times, people
wrongly view LOI’s as documents that are “somewhat
binding.”
Time and effort : Consummating a business sale often
takes longer than the principals initially anticipate. This is
due largely to the time needed to identify, evaluate,
propose, negotiate, review and often renegotiate najor
deal points as well as ancillary issues.

Q2. Franchising Law In India

The Indian Contract Act: The Indian Contract Act of
1872 governs all aspects of franchisee contracts
including the franchise offerings, acceptance,
considerations, validity, breach and the termination of
the franchise contract.
Intellectual Property Laws: There are four acts
covering intellectual property rights in India; the
Copyright Act(1957), the Patents Act(1970), the
Trademarks Act(1999)and the Designs Act(2000). These
rights are essential to the survival of the franchise
industry & provide protection for trademarks, patents,
and registered designs & allow legal actions to be
brought against third parties for infringement of these
rights.
The Foreign Exchange Management Act: Established
in 1999, this act governs payments in foreign currency
and is generally applicable to cross border franchise
arrangement.

Q3. Process of evaluating franchisee

opportunity
Find a franchise that fits you: Think about what your
interest are, your prior experience, and what you are
good at. There are lots of questions you need to ask
yourself. How many hours or days a week are you
prepared and willing to work in your business and many
more questions.
Obtain information about franchisors: Research via
the internet or obtain materials directly from the
franchisors.If the franchisor is publicly held, annual
financial statements are published by the Securities
and Exchange Commission.  Investigate news
stories about the franchisor.  Are there any lawsuits
or disputes?  Do they have a good reputation and is
the franchise popular among consumers?
Determine the financial requirements of potential
franchisors: Most franchisors will disclose this as part of
the initial information they provide to interested
investors. The startup payments required can vary
significantly from franchise to franchise.
Speak to several franchisees: Determine whether
they’ve had a good experience as a franchisee and if they
would do it again. Are they happy with the support
they’re receiving from the franchisor? Are they happy
with the amount of training & marketing help they are
receiving?

Q4. Negotiations and its 4 P’s

Negotiation: Negotiation is the process of bargaining,
where two parties, trying to reach an agreement on
mutually accepted terms to acquire each other wants.
 4 P’s are:
Purpose: Aim is required otherwise it will result in
wastage of money, manpower and time.
Plan: Main agenda on which negotiation is to be carried
on.
Pace: Main points should be covered in discussions, also
proper breaks must be introduced to maintain interest of
people involved.
Personalities: Negotiator initiating negotiation must
have convincing power, effective communication skills,
can influence people and process of negotiations.

Q5. Legalities in franchising agreement

Term: Period for which the franchise is granted by the
franchisor.
Territory: Area of operation for the franchisee.
Fees: Initial, on-going and one off fees.
Training: Initial as well as ongoing training.
Insurance: Insurance for premises, cash, theft, fire, etc.
Renewal: Renewing the term.
Termination: Terminating the agreement prior to the
end of the term.