separate franchise agreements were entered into
between petitioner/franchisee and the respondent/franchisor. As per the terms of
the said agreements, the petitioner ... AELA franchise agreement are reproduced
hereinbelow:
“1. GRANT OF LICENSE
1.01 The Franchisor hereby grants to the Franchisee for the
duration of the term
manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trade mark, service mark, trade name or logo ... such symbol, as the case may be, is involved;
(ii) The franchisor provides concepts of business operation to franchisee, including know how, method of operation
manufacture goods or to provide service
or undertake any process identified with
franchisor, whether or not a trade mark, service
mark, trade name or logo ... such symbol, as
the case may be, is involved;
(ii) the franchisor provides concepts of
business operation to franchisee, including know
how, method of operation
International Franchise holding (Labuan) Ltd.
Thus, both the Franchisors are getting extra consideration in the form of
contribution towards advertisement from the Franchisee for promotion ... therefore, taxable as he is providing Business Support Service to the
Franchisor, the amount paid by the appellant being the extra consideration
spent
service provided or to be provided to a
franchisee, by the franchisor in relation to franchise. The
expression „franchise‟ has been defined under sub-section ... manufacture goods or to provide service or
undertake any process identified with franchisor,
whether or not a trademark, service mark, trade
name or logo
services;
b) He shall abide by all the reasonable
directions of the franchisor in connection with
the use and presentation of marks;
c) The equipment ... such colour
and manner as may be directed by the
franchisor;
d) He shall do nothing which will predjudice or
damage the goodwill
VIKAS ARORA
Signing Date:01.03.2024
16:14:58
"AND WHEREAS Franchisor hereby agrees to cap the
financial liability of the Franchisee to the extent ... applicable, till
the date of final payment by the Franchisee to the Franchisor."
21. Further, the plaintiff had alleged that the post-dated cheques
consumer confusion
arises when a terminated franchisee continues to
use the former franchisor's trademarks."
xxx xxx xxx
Understandably, many ex-franchisees ... indicated that
franchisees who refuse to pay franchise fees and
sue the franchisor for antitrust violations have in
effect "repudiated" the franchise contract
amount was not required to be
deposited in any fund of the franchisor for advertisement or promotion of
the franchisor. Thus, the decision ... expenditure on
advertising the brand name, service marks and trademarks of the
franchisor. Any indirect result, because of advertisement cannot,
therefore, be called an extra
Picasso Digital Media Pvt Ltd vs Commissioner, Cgst-Delhi East on 20 February, 2024
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