PRESENTED BY :PRESENTED BY :CHANDRESH CHANDRESH

MAURYAMAURYAANKUR KUMARANKUR KUMARABHAY KUMARABHAY KUMAR

ALKA SRIWASTAVAALKA SRIWASTAVA

What is Franchisee AgreementWhat is Franchisee Agreement

Franchising is a long-term cooperative Franchising is a long-term cooperative relationship between two entities a relationship between two entities a franchisor and one or more franchisees franchisor and one or more franchisees that is based on an agreement in which that is based on an agreement in which the franchisor provides a licensed the franchisor provides a licensed privilege to the franchisee to do businessprivilege to the franchisee to do business

ABOUT MADHUBAN ABOUT MADHUBAN EATERIES:-EATERIES:-

Madhuban Eateries has started chain of Madhuban Eateries has started chain of ten Fast Food Restaurants in 2009, six at ten Fast Food Restaurants in 2009, six at Gurgaon and four at Faridabad .The Gurgaon and four at Faridabad .The present turnover of the chain is Rs 37 present turnover of the chain is Rs 37 crores.crores.

About Lavaza coffee cafeAbout Lavaza coffee cafe

Lavaza is a coffee café which was started Lavaza is a coffee café which was started in 15 july 2009, in coffee service only, but in 15 july 2009, in coffee service only, but now Lavaza is willing to contract with now Lavaza is willing to contract with Madhuban Eateries, for fast food service Madhuban Eateries, for fast food service as wellas well

ESSENTIAL ELEMENT TO ESSENTIAL ELEMENT TO ENTER IN TO A ENTER 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

Budget of LavazaBudget of Lavaza

Lavaza is going to invest Rs 50 lakh Lavaza 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 globalized 10 lakh material and well globalized

equipment equipment 15 lakh others expenses including 15 lakh others expenses including

advertisement, franchisee agreement cost, advertisement, franchisee agreement cost, etcetc

Location of franchiseeLocation of franchisee

Lavaza Café Coffee is located sector-17 C Lavaza Café Coffee is located sector-17 C in Chandigarh which is heart place of in Chandigarh which is heart place of Chandigarh.Chandigarh.

DESIGN CONCEPT DESIGN CONCEPT DRAWINGS DRAWINGS

Parking layout.Parking layout.Seating layoutSeating layoutRestaurant lightingRestaurant lightingTypical wall sectionsTypical wall sections

MANUALMANUAL

AS per the Madhuban Eateries manual AS per the Madhuban Eateries manual (mention in the franchisee contract)and (mention in the franchisee contract)and Lavaza coffee café.Lavaza coffee café.

Royalty FeesRoyalty Fees

A continuing quarterly fee in the amount A continuing quarterly fee in the amount of four percent (4%) of Gross Sales at the of four percent (4%) of Gross Sales at the Restaurant in each accounting period Restaurant in each accounting period payable by Franchisee to Madhuban payable by Franchisee to Madhuban EateriesEateries

SECURITYSECURITY

Franchisee shall obtain, insurance at least Franchisee shall obtain, insurance at least thirty (30) days prior to commencement of thirty (30) days prior to commencement of Restaurant constructionRestaurant construction

Environmental AspectEnvironmental AspectFood safety l icense:Food safety l icense:    This is obtained by FSSAI (Food Safety This 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 Police This is provided by Licensing Police

Commissioner of that city. In case you Commissioner of that city. In case you open a restaurant in Chandigarh, you open a restaurant in Chandigarh, you need to go to the site of Licensing Police need to go to the site of Licensing Police Commissioner of Chandigarh Commissioner of Chandigarh

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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 the This has to be done before submitting the application, application,

Music l icense:Music l icense:  For playing recorded  For playing recorded music or video in your restaurant, you music or video in your restaurant, you need to obtain this license Phonographic need to obtain this license Phonographic Performance Ltd. (PPL) Performance Ltd. (PPL)

ADVERTISINGADVERTISING Newspapers, magazines and other Newspapers, magazines and other

periodicals;periodicals; Radio/ television;Radio/ television;   Outdoor advertising Outdoor advertising   Transit advertising and direct mail; andTransit advertising and direct mail; and   Such other media to which Madhuban’s's Such other media to which Madhuban’s's

consents.consents.

EXCLUSIVE RIGHTS & TERMSEXCLUSIVE RIGHTS & TERMS

FEES AND PAYMENTSFEES AND PAYMENTSCONFIDENTIAL INFORMATIONCONFIDENTIAL INFORMATIONACCOUNTING AND RECORDSACCOUNTING AND RECORDSCONSENT AND WAIVER etc.CONSENT AND WAIVER etc.

CANCELLATION OF CANCELLATION OF AGREEMENTAGREEMENT

The agreement will be cancelled if the The agreement will be cancelled if the LAVAZA CAFÉ COFFEE. violated any of LAVAZA CAFÉ COFFEE. violated any of the terms & conditions the terms & conditions

Right of using a name of FRANCHISOR Right of using a name of FRANCHISOR would be taken back. would be taken back.