Frequently asked questions

Yes. There is no ban. There is also no dedicated Franchise Act — relationships are mainly contractual, shaped by contract, IP, consumer, competition, tax, and FEMA where relevant.

It depends on sector, brand, and city. Some formats start in the low lakhs of total investment; full retail or F&B in prime locations can run into crores. Always model total investment, not only the franchise fee.

An ongoing fee to the franchisor, often a percentage of sales (sometimes fixed). Read whether it is on gross or net sales.

FOFO means you own and operate. FOCO means you invest while the company operates — less common. Most independent buyers encounter FOFO.

Yes, before you sign a multi-year agreement with fees, territory limits, and exit constraints.

Yes, subject to FDI policy for the structure used, IP licensing, tax, and FEMA rules on fee remittances. Specialist advice is essential.

Often initial fees are non-refundable or only partly refundable under narrow conditions. Read the agreement.

Typical business registrations (including GST where applicable), local trade / shops registrations, FSSAI for food, and additional approvals for health or education formats.

There is no universal number. Ask for comparable unit histories and stress-test optimistic forecasts.

Often only with franchisor approval and under transfer rules/fees in the agreement.

It can reduce some startup risks and introduce others (fees, constraints, franchisor dependency). It is not a guarantee.

If you are a buyer: Is it right for you → How to buy → Costs → Due diligence → Legal. Use sectors to narrow categories.