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Formation of company with street vendors


16-Apr-2023 (In Startup Law)

sir /madam i want to form an e commerce website for street vendors on which they will perform the task of delivery of street food in their area . currently govt and fssai have started a hygeine training programme for these street vendors with coverage of 20,000 street vendors so my query is that how to form a company with these street vendors and how to bind them in an agreement as they cant be legaly bind as they operate on a road. pls reply soon

Answers (3)

Answer #1
994 votes
You dont have to form a company with these vendors. You will have to make an agreement with each and everyone of them. Company has to be formed by you which will be an intermediary for client and vendors.
Answer #2
660 votes
Hello!

The street vendors are unfortunately out of the purview of FSSAI rules and regulations. Street vendors are mostly uneducated people with good sense of business. Best way would be to have a form signed wherein we have thebasic terms of contract laid down in say, Hindi. The form can have terms such as (i) the method and packaging of food; (ii) time of delivery; (iii) ensure that they attend government's hygeine drives; (iv) uniform of the delivery man etc.

Your website MUST have a disclaimer that you are just facilitating home delivery of street vendor's food and cannot ensure food safety.

You do not have to form a company with them. You have to have binding contracts and training sessions with them. You can take cue from the model that Urban Clap is following.

Wish you all the best!
Answer #3
607 votes
Thank you for your question. You can have a structure wherein every street vendor intending to be associated with your company can enter into a contract with the company. This contract will be legally binding on them and is immaterial if they operate out of a place in the street. However caution must be taken at the tim of drawing up the agreement to ensure that all the liabilities and responsibilities that will fall upon the company with respect to health standards and consumer protection is trickled down to the vendor.

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

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