Clarification on registration of Franchise agreement

730 votes

When a Company enters into an Agreement it acts only through its Directors or such other Representatives as has been resolved in Board Meeting. Answering the first point, While entering into an Agreement it is always desirable for the purpose of Clarity in Identication of all the parties to the Agreement to mention such details. This is to avoid further legal complications. If both the parties agree to mention CIN and DIN then there is in fact no difficulty in that, also there would not be any problems as such.
Coming to second point, whether Francise agreement is required to be registered or not depends on the terms and conditikns of the agreement. But if any immoveable property is involved then registration comea into picture.

Advocate Bharat G. Thorat LawRato

775 votes

Answer to your question 1- it is advisable to have but not compulsory so that clarity of legal name is there to file can case against legal person like the pvt ltd company. If signed by director then DIN or else have board resolution in favour of the person executing the franchisee agreement but not necessary. Other aspects will factually ensure the authenticity of the person involved and keep your mind clear with regard to genuineness of all people involved. (precautionary need not mandatory to enter into franchisee agreement)
Answer to your question 2 - franchisee agreement need not be registered hence notarized copy will do.

please note in government contracts, if the tenders expect some process then you need to ensure compliance of the same for your own good and strengthening of the case. Legality may not fully be questioned in absence of the above been not done in some case.

Advocate Rajesh Singh LawRato

893 votes

CIN no is a unique identification no.by which a company's identity is tracked by the Ministry of Corporate Affairs. So as a matter of protocol and for avoidance of any question with respect to a Company with which you have contracted, it is essential to have it quoted in an agreement.Even in High courts, company petitions without CIN no is not accepted at time of filing.

Advocate Vadakkemadom Lakshmanan SR LawRato

615 votes

Mentioning CIN No and DIN No is mandatory as per Companies Act, 2013 but by just not mentioning the same does not invalidate your agreement. Further, it is better if you also put witness name and get it signed by them and it is not compulsory to register franchisee agreement.

Advocate Bankim Mehta LawRato