1. Franchise
Submitted by –
• Shristi Giri
• Aviral Chaturedi
• Ashish Srivastava
• Pankaj Kumar

2. Contents
• Franchise
• Franchisor and Franchisee
• Various phases
• Laws that apply on franchising
• Introduction
• Why Chandigarh
• Benefit of an experience Franchisee
• Some salient sections of Agreement

3. What is franchise ?
• An authorization granted by a
government to an individual or
group enabling them to carry out
specified commercial activities.
• Ex. Acting as an agent for a
company’s product.

4. Franchisor and Franchisee
• The company
that allows an
individual to run
a location of
there business
in return for a
fees.
• One who
purchases a
franchise. The
franchisee then
runs that location
of the purchased
business.

5. Various phases of franchise
process
• Preparation
• Franchise Agreement
• Management of a franchise
• Termination of a franchise
agreement

6. Laws that apply to
franchising

8. Introduction
• Franchisor - Madhuban Eateries is
working since 2009.
• Team has been operating with 10 fast
food Restaurants 6 at Gurgaon and 4 at
Faridabad.
• The cuisine is Tamilian meals and Snacks.
• Turnover – Rs. 37 crores , the aim is to
organic growth through the franchise.

9. • Franchisee – Mr. and Mrs. Idly a
QSR Business model.
• Located in Chandigarh, envisioned
in the year 2012.
• It serves customer the delicious
finger biting South Indian delicacy.
• Driven by the proven
entrepreneurship skills and
marketing skills.

10. Why Chandigarh?
• Capital city of two states
• City is top by the per capita income in the
country.
• Per capita income Rs. 99262
• GDP growth rate 8.3%
• One of the most developed economy
• Benefit with the laws
• It is also known as WEALTHIEST CITY

11. Privileges of giving Franchise to
experience Franchisee
• Least chances of fallacy by ‘Franchisee’ in the
operation of business.
• Adequacy in the supply and services to the
customer.
• Coordination between Management and
Employees because of experience.
• Least chances of fallacy in maintaining the
records of accounts.
• Approximate and thorough knowledge of
product and services by the ‘franchisee’.

12. Some salient sections of
Agreement
• Recitals
• Appointment and grant of licence
• Location – Area should not be less then 800
sq. feet.
• Proprietary Marks
• Quality Control
• Training and Assistance
• Consideration and Remuneration (fees –
4,00,000/- , Royalty 8%)

13. • Advertising and Marketing
• Franchisee’s Obligation
• Franchisor’s Obligation
• Term, Termination, Renewal
• Accounting and Records
• Exit and Consequences
• Inspection
• Settlement of disputes
• Waiver
• Jurisdiction