Franchise Policy – Urban Kachori Wala

AGREEMENT :

1. Grant of Franchise

A. Grant of Rights:

The Franchiisor grants the Franchisee the right to operate “ URBAN KACHORIWALA FRANCHISE” in the designated territory of Any city, in accordance with the terms of this agreement. This grant includes the use of Franchisor’s trademark, trade names, service marks, logos, and proprietary .systems.

B. Territory :

The Franchi is granted the exclusive right to operate the franchise within 6 kilometres of area within the territory of Any city. The Franchisor agrees not to establish or license another franchise within this territorial area during the term of this Agreement.

C. Exclusivity:

Franchisee shall have exclusive right to operate the URBAN KACHORIWALA franchise within the designated territory, provided that the Franchisee complies with all terms and conditions of this Agreement.

2. Term and Renewal

A. Initial Term :

The initial term of this Agreement shall commence on the Date (________/_________/__________________) and remain in effect for a period of 5 consecutive years unless terminated earlier as provided herein.

B. Conditions for Renewal:

Franchisee may renew the Agreement for an additional term of 5 years, provided that Franchisee has complied with all terms and conditions of this Agreement, and gives written notice of intent to renew at least 180 days prior to the expiration of the initial term.

C. Renewal Process:

Renewal of the Agreement is subject to the approval of Franchisor, and may require Franchisee to sign the then-current form of franchise agreement, which may include modifications to terms and conditions.

3. Franchise Fees

The Franchisee agrees to pay the following fees:

A. Initial Fee:

A non-refundable 1,00,000/- Indian rupees due upon signing this Agreement.

B. Ongoing Royalties:

Franchisee shall pay Franchisor ongoing royalties of 10% of gross sales, payable monthly within 2 days of the end of each month. Gross sales shall be calculated in Accord with the reporting guidelines provided by Franchisor.

4. Development of The Franchise Store

A. Construction:

The franchise store must be designed, laid out, furnished and equipped to meet our standards and specification, and franchisee must satisfy any conditions to our approval of the development. After the Agreement the Franchisor will give you proper timeline for possession of the store then the team will arrive to your store and will submit completion certificate named with franchisee to the company then the franchisee can start his/her journey with grand opening.

B. Opening Requirements:

Franchisee shall comply with all pre-opening requirements specified by Franchisor, including training, inventory acquisition and marketing initiatives, to ensure a successful Launch of Franchise.

5. Training and Support

The Franchisor shall provide the franchisee with an initial training programme of 2 days to ensure proper operation of the franchise. Ongoing support through regular consultation and access to marketing materials.

6. Operational Standards

A. Compliance with Brand Standards:

Franchisee agrees to comply with brand standards and operational procedures established by Franchisor. This includes maintaining the quality and consistency of product and services offered at the franchise location.

B. Quality Control Measures:

Franchisee shall adhere to all quality control measures implemented by Franchisor, including regular inspections and audits conducted by Franchisor to ensure compliance with brand standards and operational procedures.

C. Operational Procedures:

Franchisee shall follow the operational procedures outlined in the operational standards Manual provided by Franchisor. This includes procedures for inventory management, customer service, food safety, and marketing practices.

7. Marketing and Advertising

A. Local Advertising Requirements:

The Franchisor will do all marketing and advertising including local advertising for each particular store. The Franchisor will take care of all digital marketing like Instagram, Facebook and all other platform for each franchise store over 2 to 3 lacs where The Franchisee doesn’t pay nothing on any local marketing and advertising.

B. National Advertising:

The Franchisor will do all marketing and advertising on national level for Urban Kachoriwala brand and group all the store location and each location so customer can google it and know about our available product. The Franchisee doesn’t pay anything for any national or any local marketing and advertising.

C. Marketing Guidelines:

All marketing and advertising materials used by Franchisee in store will be provided by Franchisor. Franchisee cannot use any marketing materials not provided by Franchisor for any type of media and advertising.

8. Payment

The franchisee has to pay all the accounts decidedby this Agreement in cash or cheque or Netbanking.

9. Penalties :

With the enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, for the Goods and services supplied by the MSME units, Payment has to be made by the buyers as under :

The buyer (Franchisee) is to make payment on or before the date agreed on between Franchisee and Franchisor in writing or, in case of no agreement, before the appointed day. The Agreement between Franchisee and Franchisor shall not exceed more than 45 days. The both Franchisee and Franchisor have to take a note of this.
If the Franchisee fails to make payment amount to the Franchisor, Franchisee shall have to pay compound interest with monthly rests to the supplier on the amount from appointed day, or on the date agreed on, at three times of the Bank rate notified by RESERVE BANK. In this regard the relevant RBI circular; IECD/5/08.12.01/2000-01 dated October 16, 2000 (reiterated on May 30, 2003, vide circular No. IECD.No.20/08.12.01/2002-03) available on RBI website.

10. Intellectual Property

A. Use of Trademarks and Logos:

Franchisee is granted the right use of Franchisor’s trademarks, logos, and other proprietary marks in connection with the operation of the franchise. This right is limited to the duration of this Agreement and is subject to compliance with Franchisor’s branding guidelines.

B. Protection of Intellectual Property:

Franchisee agrees to take all necessary measures to protect Franchisor’s intellectual property rights. This includes reporting any unauthorized use of infringement of Franchisor’s trademarks and logos to Franchisor immediately.

C. Restrictions on Use:

Franchisee shall not use Franchisor’s intellectual property for any purpose other than the operation of the franchise. Any unauthorized use of Franchisor’s intellectual property shall be considered a material breach of this Agreement.

11. Confidentiality

A. Confidential Information:

Franchisee acknowledges that during the term of this Agreement, they will have access to confidential information belonging to Franchisor. This includes proprietary business methods, operational procedures, marketing strategy, and other sensitive information.

B. Non-Disclosure Obligations:

Franchisee agrees to maintain the confidentiality of all proprietary information and not to disclose it to any third party without the prior written consent of Franchisor. This obligation shall survive the termination of this Agreement.

12. Franchisee Obligations

A. Reporting Requirements:

Franchisee shall provide Franchisor with regular reports on the performance of the franchise, including sales figures, financial statement, and other relevant data. Reports shall be submitted weekly.

B. Record Keeping:

Franchisee agrees to maintain accurate and complete records of all business operations, including financial transactions, employee records and inventory. These records shall be available for inspection by Franchisor upon request.

C. Compliance with Laws:

Franchisee shall comply with all applicable federal, state and local laws and regulations governing the operation of the franchise. This includes obtaining and maintaining all necessary licenses and permit.

13. Franchisor’s Rights and Obligations

A. Inspection and Audit Rights:

Franchisor shall have the right to inspect and audit Franchisee’s business operations and records at any time during normal business hours. Franchisee agrees to cooperate fully with any inspections or audits conducted by Franchisor.

B. Support Obligations:

Franchisor shall provide ongoing support to Franchisee, including updates to operational procedures, marketing assistance, and access to proprietary resources. Franchisor shall ensure that Franchisee receives the necessary support to maintain compliance with brand standards.

C. Enforcement of Standards:

Franchisor has the right to enforce compliance with all brand standards and operational procedures. This includes taking corrective action in the event of non-compliance, up to and including termination of this Agreement.

14. Restrictions to Sell and Add Other Market Products

In any case if Franchisor finds that franchisee sells any other market product or gives any extra offers not offered by Franchisor so Franchisor has right to warn Franchisee at first and at second step Franchisor will cancel this Agreement with legal formalities and in this case Franchisee will not get any benefits from return policy and franchisee will be black listed for future.

15. Return Policy

The Return policy will be on effect from the date of signing this Agreement and will remain for 1 year. In this policy at valid reason franchisee will be liable to get money back of inventory of store as per usage cost.

16. Transfer and Assignment

A. Conditions for Transfer:

Franchisee may not transfer or assign any rights or obligations under this Agreement without the prior written consent of Franchisor. Any proposed transfer must meet Franchisor’s then current criteria for new franchisees.

B. Approval Process:

To request approval for a transfer, Franchisee must provide Franchisor with return notice of proposed transfer at least 90 days in advance. The notice must include the name and qualifications of the proposed transferee and any other information reasonably requested by Franchisor.

C. Assignment Fees:

Franchisee shall pay an assignment fee of ____________ Indian rupees to Franchisor upon approval of the transfer. This fee is intended to cover the administrative costs associated with processing the transfer request.

17. Termination

A. Ground for Termination:

This Agreement may be terminated by Franchisor for any of the following reasons:

Franchisee’s failure to comply with any material term or condition of this Agreement.
Franchisee’s failure to pay any amounts due under this Agreement within 5 days of the due date.
Franchisee’s involvement in any activity that could harm the reputation or goodwill of the franchise system.

B. Notice Requirements:

In the event of breach, Franchisor shall provide written notice to franchisee specifying the nature of the breach. Franchisee shall have 5 days to cure the breach. If the breach not cured within this period, the Agreement may be terminated immediately.

C. Post-Termination Obligations:

Upon termination of this Agreement, Franchisee shall immediately cease all use of Franchisor’s trademark and proprietary systems, return all materials and confidential information, and pay any outstanding fees owed to Franchisor.

18. Dispute Resolution

A. Mediation and Arbitration:

Any disputes arising out of or relating to this Agreement shall first be subject to mediation. If mediation fails, the dispute shall be resolved through binding arbitration in accordance with the rules of the Indian Arbitration Association. The arbitration shall take place in a particular city, state.

B. Governing Law:

This Agreement shall be governed by and construed in accordance with the laws of the state of (______________). Any legal action arising from this Agreement shall be brought in the appropriate court within the state.

19. Indemnification

A. Indemnity by Franchisee:

Franchisee agrees to indemnify, defend, and hold harmless Franchisor, its officers, directors, and agents from any and all claims, liabilities, damages, and expenses, including reasonable attorney’s fees, arising out of or in connection with the operation of the franchise.

B. Indemnity by Franchisor:

Franchisor agrees to indemnify, defend, and hold any harmless Franchisee from any claims, liabilities, damages, and expenses, including reasonable attorney’s fees, arising out of or in connection with Franchisor’s breach of this Agreement or any wrongful acts or omissions by Franchisor.

20. Miscellaneous Provisions

A. Entire Agreement:

This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions, agreements, or understanding of any kind. Any amendments to this Agreement must be made in writing and signed by both parties.

B. Amendment:

This Agreement may be amended only by a written document signed by both parties. Any proposed amendments shall be discussed and agreed upon within 10 days of the proposal.

C. Severability:

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

D. Waiver:

The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of that provision or any other provision.

E. Notices:

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses specified above. Notices shall be deemed given when received by the other party.

IN WITNESS WHEREOF, the parties hereto have executed this Food Franchise Agreement as of the day and year first written above.

Urban Kachoriwala is a modern Indian street food franchise known for its bold flavors, hygienic kitchens, and high-return franchise model. Built on trust and tradition, we empower entrepreneurs to succeed with minimal risk and maximum support.