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Franchisee Agreement Term

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Agreement terms and process

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Franchisee Agreement Term

  1. 1. PRESENTED BY :PRESENTED BY : CHANDRESHCHANDRESH MAURYAMAURYA ANKUR KUMARANKUR KUMAR ABHAY KUMARABHAY KUMAR ALKA SRIWASTAVAALKA SRIWASTAVA
  2. 2. What is Franchisee AgreementWhat is Franchisee Agreement Franchising is a long-term cooperativeFranchising is a long-term cooperative relationship between two entities arelationship between two entities a franchisor and one or more franchiseesfranchisor and one or more franchisees that is based on an agreement in whichthat is based on an agreement in which the franchisor provides a licensedthe franchisor provides a licensed privilege to the franchisee to do businessprivilege to the franchisee to do business
  3. 3. ABOUT MADHUBANABOUT MADHUBAN EATERIES:-EATERIES:- Madhuban Eateries has started chain ofMadhuban Eateries has started chain of ten Fast Food Restaurants in 2009, six atten Fast Food Restaurants in 2009, six at Gurgaon and four at Faridabad .TheGurgaon and four at Faridabad .The present turnover of the chain is Rs 37present turnover of the chain is Rs 37 crores.crores.
  4. 4. About Lavaza coffee cafeAbout Lavaza coffee cafe Lavaza is a coffee café which was startedLavaza is a coffee café which was started in 15 july 2009, in coffee service only, butin 15 july 2009, in coffee service only, but now Lavaza is willing to contract withnow Lavaza is willing to contract with Madhuban Eateries, for fast food serviceMadhuban Eateries, for fast food service as wellas well
  5. 5. ESSENTIAL ELEMENT TOESSENTIAL ELEMENT TO ENTER IN TO AENTER IN TO A CONTRACT.CONTRACT. Offer and acceptanceOffer and acceptance  Intention to create to legal relationshipIntention to create to legal relationship  ConsensusConsensus  ConsiderationConsideration  Capacity to contractCapacity to contract  Free consentFree consent  Legality of objectLegality of object  Possibility of performancePossibility of performance  Writing and registrationWriting and registration
  6. 6. Budget of LavazaBudget of Lavaza Lavaza is going to invest Rs 50 lakhLavaza is going to invest Rs 50 lakh 20 lakh for franchisee fee….20 lakh for franchisee fee…. 5 lakh for infrastructure development…5 lakh for infrastructure development… 10 lakh material and well globalized10 lakh material and well globalized equipmentequipment 15 lakh others expenses including15 lakh others expenses including advertisement, franchisee agreement cost,advertisement, franchisee agreement cost, etcetc
  7. 7. Location of franchiseeLocation of franchisee Lavaza Café Coffee is located sector-17 CLavaza Café Coffee is located sector-17 C in Chandigarh which is heart place ofin Chandigarh which is heart place of Chandigarh.Chandigarh.
  8. 8. DESIGN CONCEPTDESIGN CONCEPT DRAWINGSDRAWINGS Parking layout.Parking layout. Seating layoutSeating layout Restaurant lightingRestaurant lighting Typical wall sectionsTypical wall sections
  9. 9. MANUALMANUAL AS per the Madhuban Eateries manualAS per the Madhuban Eateries manual (mention in the franchisee contract)and(mention in the franchisee contract)and Lavaza coffee café.Lavaza coffee café.
  10. 10. Royalty FeesRoyalty Fees A continuing quarterly fee in the amountA continuing quarterly fee in the amount of four percent (4%) of Gross Sales at theof four percent (4%) of Gross Sales at the Restaurant in each accounting periodRestaurant in each accounting period payable by Franchisee to Madhubanpayable by Franchisee to Madhuban EateriesEateries
  11. 11. SECURITYSECURITY Franchisee shall obtain, insurance at leastFranchisee shall obtain, insurance at least thirty (30) days prior to commencement ofthirty (30) days prior to commencement of Restaurant constructionRestaurant construction
  12. 12. Environmental AspectEnvironmental Aspect Food safety license:Food safety license:    This is obtained by FSSAI (Food SafetyThis is obtained by FSSAI (Food Safety and Standards Authority of India). and Standards Authority of India).  Eating house license:Eating house license:    This is provided by Licensing PoliceThis is provided by Licensing Police Commissioner of that city. In case youCommissioner of that city. In case you open a restaurant in Chandigarh, youopen a restaurant in Chandigarh, you need to go to the site of Licensing Policeneed to go to the site of Licensing Police Commissioner of ChandigarhCommissioner of Chandigarh
  13. 13. `` Fire Department:Fire Department: You have to ensure the You have to ensure the compliance of all the fire safety guidelines.compliance of all the fire safety guidelines. This has to be done before submitting theThis has to be done before submitting the application,application, Music license:Music license:  For playing recorded For playing recorded music or video in your restaurant, youmusic or video in your restaurant, you need to obtain this license Phonographicneed to obtain this license Phonographic Performance Ltd. (PPL)Performance Ltd. (PPL)
  14. 14. ADVERTISINGADVERTISING  Newspapers, magazines and otherNewspapers, magazines and other periodicals;periodicals;  Radio/ television;Radio/ television;    Outdoor advertisingOutdoor advertising    Transit advertising and direct mail; andTransit advertising and direct mail; and    Such other media to which Madhuban’s'sSuch other media to which Madhuban’s's consents.consents.
  15. 15. EXCLUSIVE RIGHTS & TERMSEXCLUSIVE RIGHTS & TERMS FEES AND PAYMENTSFEES AND PAYMENTS CONFIDENTIAL INFORMATIONCONFIDENTIAL INFORMATION ACCOUNTING AND RECORDSACCOUNTING AND RECORDS CONSENT AND WAIVER etc.CONSENT AND WAIVER etc.
  16. 16. CANCELLATION OFCANCELLATION OF AGREEMENTAGREEMENT  The agreement will be cancelled if theThe agreement will be cancelled if the LAVAZA CAFÉ COFFEE. violated any ofLAVAZA CAFÉ COFFEE. violated any of the terms & conditionsthe terms & conditions  Right of using a name of FRANCHISORRight of using a name of FRANCHISOR would be taken back.would be taken back.

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