• Franchise Agreement (under pagdi system)

My company has a commercial place under pagdi system.

We want to start a franchise. 

Now we could start a franchise either on sales based commission or fixed commission per month.

Can a building's owner take objection in both cases?
Asked 7 years ago in Property Law
Religion: Hindu

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6 Answers

owner can object to starting frachisee in his premises by the company

2) advisable to obtain the landlord consent to avoid legal complications in future

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

Owner can file eviction suit against you

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

1. First check the nature of tenancy. If the tenancy is for commercial purpose then the landlord ahs nothing to say in running of the business unless and until the business is lawful.

2. In the case of commercialternancy the consent of landlord is not otherwise required.

Devajyoti Barman
Advocate, Kolkata
22921 Answers
498 Consultations

5.0 on 5.0

you can start a fixed rate or sales bases but the matter of concern is that whether landlord will be agree. terms of letting should be taken into consideration when property was let out on pagdi. if there is no such clause to change nature of business then landlord shall not bother otherwise his consent is necessary.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

Now we could start a franchise either on sales based commission or fixed commission per month.

Can a building's owner take objection in both cases?

Until you are doing any business within the scope of the rental agreement, you cannot be restricted by the landlord.

If there is no condition forbidding you from carrying out business through franchise, in my opinion, you should not face any trouble.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

what if owner is not ready to give consent?

Firstly, you do not seek his permission or consent to start the franchise business, you may proceed with your program, if he objects then you may handle it legally, by first issuing a legal notice and then obtain injunction by filing a suit seeking to restrain him from indulging in such activities other than by due process of law. .

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

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