What Happens When a Franchisor Goes Bankrupt? India's Legal...

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2026-07-06 05:10:37 -

What Happens When a Franchisor Goes Bankrupt? India's Legal Vacuum for Franchisee Protection

Investing in a preschool franchise is often seen as a safer alternative to starting an independent business. Franchisees benefit from an established brand, proven business systems, training, and ongoing operational support. However, one critical risk is rarely discussed: What happens if the franchisor becomes financially insolvent or goes bankrupt? In India, franchise relationships are...

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