FRANCHISE AGREEMENT THIS FRANCHISE AGREEMENT ("Agreement") is entered into as of [DATE] between:
1. Tasty Bites Foods Private Limited , having its registered office at Franchisor address (GSTIN: 07AABCT1234C1ZX ), represented by Ankit Gupta, Director (hereinafter "Franchisor"); AND
2. Sharma Enterprises / Mohan Sharma , having its address at Franchisee address (PAN: AABCS5678D ) (GSTIN: 29AABCS5678D1ZY ), represented by Mohan Sharma, Proprietor (hereinafter "Franchisee").
1. Grant of Franchise
The Franchisor hereby grants to the Franchisee a limited, exclusive right and licence to operate a franchised outlet under the "Tasty Bites " brand and trade mark in the following territory:
Indiranagar, Bengaluru (within a 2 km radius of the outlet at 12th Main Road) / HSR Layout ward, Bengaluru
The franchise outlet shall be operated at: Shop No. 5, 12th Main Road, Indiranagar, Bengaluru – 560 038 .
During the term of this Agreement, the Franchisor shall not appoint any other franchisee or operate a company-owned outlet within the exclusive territory.
2. Term and Renewal
This Agreement is effective from [DATE] and shall continue for an initial term of 5 (five) year(s). The Franchisee may renew this Agreement for successive terms of 5 year(s) by: (a) giving written notice at least 90 days before expiry; (b) not being in material breach; (c) signing the then-current form of franchise agreement; and (d) paying the applicable renewal fee.
3. Franchise Fee and Royalty
Franchise Fee. The Franchisee shall pay a one-time franchise fee of ₹0 (Rupees [FEE_IN_WORDS] only) plus applicable GST (currently 18%), upon signing this Agreement. The franchise fee is non-refundable.
Royalty. 0% of the Franchisee's gross monthly revenue (plus applicable GST), payable by the 10th of the following month , supported by monthly revenue statements.
Marketing Fund. The Franchisee shall contribute 2% of monthly gross revenue to the Franchisor's advertising and marketing fund, payable monthly.
TDS: The Franchisee shall deduct TDS at 10% under s.194J of the Income Tax Act 1961 on all royalty payments and issue Form 16A quarterly to the Franchisor.
4. Intellectual Property Licence
The Franchisor grants the Franchisee a non-exclusive, non-transferable licence to use the "Tasty Bites " trade mark, logo, trade dress, copyrighted materials, and associated intellectual property solely in connection with the operation of the franchised outlet during the term of this Agreement. The Franchisee shall not: (a) use the IP for any other purpose; (b) modify, sub-licence, or assign the IP; (c) register or apply for any IP rights similar to the Franchisor's IP. All IP usage must conform to the brand guidelines issued by the Franchisor from time to time.
5. Operations and Quality Standards
The Franchisee shall:
(a) operate the outlet strictly in accordance with the Tasty Bites Operations Manual v3.0 (2024) as updated from time to time;
(b) maintain the quality standards, specifications, and sourcing requirements prescribed by the Franchisor;
(c) attend and complete the initial training programme (21 days at franchisor's training centre ) and all mandatory refresher training;
(d) permit the Franchisor's representatives to conduct quarterly quality audits of the outlet;
(e) promptly remedy any deficiencies identified during audits within the timeframe specified by the Franchisor;
(f) maintain all statutory licences, FSSAI registration, GST registration, municipal trade licence, and other required permits.
6. Franchisee Obligations
(a) The Franchisee shall operate the outlet only from the approved location and may not relocate without the Franchisor's written consent.
(b) The Franchisee shall not operate or be involved in any competing business within the territory during the term.
(c) The Franchisee shall maintain accurate books of accounts and submit monthly revenue reports to the Franchisor.
(d) The Franchisee shall not assign or sub-franchise this Agreement without the Franchisor's prior written consent.
(e) The Franchisee shall comply with all applicable laws including FSSAI, GST, labour laws, and consumer protection regulations.
7. Confidentiality
The Franchisee shall keep confidential all trade secrets, proprietary recipes, formulations, supplier information, pricing strategies, business systems, and other confidential information of the Franchisor. These obligations survive termination for three (3) years and indefinitely for trade secrets.
8. Termination
The Franchisor may terminate this Agreement immediately upon written notice if the Franchisee: (a) fails to pay any fees or royalties within 15 days of the due date; (b) operates the outlet in a manner that brings the brand into disrepute; (c) repeatedly fails quality audits; (d) becomes insolvent or is wound up; (e) is convicted of a criminal offence; (f) assigns or sub-franchises without consent.
Either Party may terminate for material breach by giving 30 days' written notice if the breach is not cured within such period.
On termination: (i) the Franchisee shall cease to use all brand materials and IP; (ii) de-identify the outlet; (iii) pay all outstanding fees; (iv) allow the Franchisor to purchase the outlet's stock and equipment at fair value. The Franchisee shall not solicit the Franchisor's customers or employees for 12 months post-termination.
9. Governing Law
This Agreement is governed by the laws of India. Disputes shall be first attempted to be resolved by mutual negotiation. If unresolved within 30 days, disputes shall be submitted to arbitration under the Arbitration and Conciliation Act 1996, by a sole arbitrator, at Bengaluru . Courts at Bengaluru shall have exclusive jurisdiction for interim relief.
IN WITNESS WHEREOF the Parties have executed this Agreement as of the date first written above.
Franchisor
__GAP[fa_franchisor_name|Tasty Bites Foods Private Limited]__
__GAP[fa_franchisor_signatory|Ankit Gupta, Director]__
[Signature & Seal]
______________________
Franchisee
__GAP[fa_franchisee_name|Sharma Enterprises / Mohan Sharma]__
__GAP[fa_franchisee_signatory|Mohan Sharma, Proprietor]__
[Signature & Seal]
______________________