Agreement terms and process

1. PRESENTED BY :PRESENTED BY :
CHANDRESHCHANDRESH
MAURYAMAURYA
ANKUR KUMARANKUR KUMAR
ABHAY KUMARABHAY KUMAR
ALKA SRIWASTAVAALKA SRIWASTAVA

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. 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. 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. 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. 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. 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. DESIGN CONCEPTDESIGN CONCEPT
DRAWINGSDRAWINGS
Parking layout.Parking layout.
Seating layoutSeating layout
Restaurant lightingRestaurant lighting
Typical wall sectionsTypical wall sections

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. 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. 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. 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. ``
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. 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. 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. 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.