I have shop that i have acquired under the West Bengal Tenancy Act. After acquiring the shop, i have made investment to develop the infrastructure of the shop and have acquired the requisite license and electricity connection to conduct business from the same. There is a brand who wants to join hand with me by providing a fixed money every month. 1) Should i make a partnership or franchisee agreement with the brand for this arrangement? 2) Can i make a leave and license agreement for this arrangement? 3) What should be the terms and condition broadly for this arrangement from legal perspective? 4) What kind of consent should i seek from the landlord?
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You need landlord consent to enter into partnership with another person
2) for leave and license agreement you also need landlord consent
3) if you do without landlord consent it is ground for termination of tenancy rights
4) it is better you enter into franchise agreement under your own name
Subletting or immoral use of premises will invite eviction . West Bengal Tenancy Act Restricted the subletting. As per the act no tenant shall, without the previous consent in writing of the landlord (a) sublet the whole or any part of the premises held by him as a tenant or (b) transfer or assign his rights in the tenancy or in any part thereof.
LEAVE AND LICENSE AGREEMENT indicates a subletting. In a leave and license the Licensee can use and occupy the said premises on Leave and License basis for a period of time. So you need landlord consent or otherwise can face eviction.
So an agreement or partnership is done very carefully. All the legal documents do not reflect a subletting. If it reflects then prior approval may be taken from the land lord.
Or you have to add or make changes in the clause in your lease agreement that; the tenant has permit to engage business with branded companies, tie ups with other branded stores or franchises .
q. Franchise agreement is more suitable though there is no harm to enter into partnership also if the brand so agrees.
2. No need to go for leave and licence.tenancy agreement is enough.
3. It is broad aspect which can not be stated in few lines.
4. No special consent is required if the tenancy is for running of your business.
1. It depends what terms and conditions have been mentioned in the tenancy agreement you have signed Being a tenant, you can not change your status as proprietor if the agreement so stipulates. So, it that case franchisee agreement appears to be the better choice.
2. You are already a tenant therein. So, you can not induct anybody therein as a leave and licensee..
3. There shall have to be a redrafting of the tenancy agreement if you induct a third party in to the loop.
4. He should give consent for your inducting a third party in to the premises which will occupy his premises.
1. Whether a partnership or franchisee, the agreement conditions should be in a such a way that it would not prove detrimental to your very existence.
Franchisee agreement may not be feasible, instead you may agree for partnership on the terms by which the decisions shall be taken by you alone and the other partner shall invest and remain a sleeping partner, of course it would depend on the circumstances.
2. Leave and licence agreement wold be termed as subletting
hence it may not be advisable.
3. You can include him as a partner on the terms mutually agreed between you both and sail safely.
4. If this is a partnership business, then you need not take consent from landlord, you can remain tenant on your own and let the partnership company pay the rent.
