This document discusses franchising and proposes a franchise agreement between Madhuban Eateries and Mr. and Mrs. Idly. It defines a franchisor and franchisee, outlines the franchise process and applicable laws. Madhuban Eateries has operated restaurants in Gurgaon and Faridabad since 2009 and seeks organic growth through franchising. Mr. and Mrs. Idly currently operates a successful restaurant in Chandigarh serving South Indian cuisine. The document proposes granting a franchise location to them in Chandigarh and highlights key sections of the franchise agreement such as fees, obligations, termination terms and dispute resolution.

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