the repeal of FERA and advent of the Foreign Exchange Management Act, 1999 (FEMA), foreign investors found their passage into India with rules for entry becoming far more favourable.

However, franchising was and continues to be a successful and popular business model. It usually entails an agreement whereby an independent entity (Franchisee) is granted representational right to sell/manufacture goods or to provide services or undertake any process identified with the franchisor, usually with rights to use diverse IP. There is little scope for the franchisee to innovate or experiment as the franchisor would like to maintain consistency amongst all franchisees and, accordingly, impose suitable uniform conditions to the said effect in the agreement. In India, there is no specific legislation governing franchising though many countries (including USA and Australia) across the globe have specific legal frameworks governing such arrangement. Franchise agreements, in India, are governed by the general principles of the law of contract and ancillary legislations which ensure both specific enforcement of covenants and remedies in case of breach.