This agreement is signed on 27/02/2020

Between

PARTY NO 1 

And

PARTY NO 2 

Both parties as above have expressed a desire of entering into a franchise agreement to meet their respective objectives, which are set out herein below,

The purpose of this Agreement is to set forth the terms and conditions under which the parties to the Agreement shall conduct themselves during the substances of Agreement.

NOW, THEREFORE, the parties, in considerations of the convents, undertakings and commitments set forth therein hereby mutually agree as follows,

Grant of the Franchise

1. Royal Bakers is a brand to reckon with. Its name is synonymous to premium high-quality delicious cakes, breads and pastries. You will surely take pride and benefit from the strong customer recognition and loyalty it has achieved in the more than 12 years it has been in the market. “Franchisee” on his part is interested in entering into the business of Bakery products and will work under the supervision, brand name and guidance of the Franchisor.  

2. The “Franchisor” warrants and represents to Franchisee that it is a firm, validly existing and a good standing under the laws of the Republic of India and has all requisite power and authority to enter into this agreement with the franchisee. All the obligations of the “Franchisor” under this agreement are legal, valid and binding obligations enforceable under its terms. 

3 The Franchisee has to pay Royalty fees in advance which are described in annexure in 1 to the franchisor for using brand name, guidance and experience from the Franchisor. In case Franchisee makes default in making the payment then Franchisee has to pay the amount with Interest 18% PA. 

Services, Terms & conditions

1 The Franchisor will provide all the guidance, chef, raw material and all the other materials at the cost of Franchisee. The Franchisee can take raw material from Franchisor on credit until the next billing. On next billing, the Franchisee has to pay the previous billing. In case Franchisee fails to pay on time then the Rate of interest on the delayed payment will be 18% PA. In case Franchisee does not make the second billing within 1 month from the previous billing then franchisee has to pay the amount of first bill in next 7 days.

2 The Franchisee has to work under the instruction of Franchisor. 

3 All the machines and interior will be done after taking written permission from the Franchisor. The Franchisee will buy machines and other equipment by taking permission from Franchisor. The Franchisee has to buy all the machines and equipment from the company which is specified by Franchisor through email. 

4 The Franchisee has to take care of quality standards as set by Franchisor. 

5” Franchisee” will keep providing the services within the purview of this agreement through their outlets to the customer. 

6 Franchise” will not enter into direct agreements with any other services providers, aggregators, distributors or any similar entity in India for this purpose, for the duration of this agreement.

7 The Intellectual Property rights including the concept of delivery of services will rest with the franchisor. If anytime franchisee uses the brand logo and name outside the jurisdiction without any prior permission then Franchisor can terminate this agreement or Franchisee has to pay damages. Also, the Franchisee cannot do online business through a website or any other social media platform without the permission of the Franchisor. For the purpose of this agreement the jurisdiction will be Ajmer. The franchisee cannot do business outside Ajmer or any other area which does not come under the Jurisdiction of Ajmer without the written permission of the franchisor.

8 ”Franchisee” shall conduct their business at all times, following the applicable statutes, regulations, notification etc., Issued by the Government of India or any other statutory authority.

Confidentiality

1. “Franchisee” shall keep all information of confidential nature received from the Franchisor in whatever form as strictly confidential and shall not disclose it to third parties without the prior written consent of Franchisor. In case Franchisee discloses the confidential information without the written information of Franchisor then Franchisor can terminate this agreement and Franchisee has to pay Rs 1,00,000 as a penalty to the Franchisor. 

2. “Franchise” agrees not to disclose revenue Information without prior written consent from the franchisor.

3 NON-COMPETITION. For the entire duration of this agreement, the franchisee will not work as an employee, officer, director, partner, consultant, agent, and owner or engage in any other capacity with a competing brand. This means that franchisee must not perform any work for Bakery in Rajasthan. The franchisee cannot launch his own bakery in Rajasthan.

Limitation of liability

1 The Franchisor shall not be liable for any incidental, special, indirect or consequential damages arising out of or relating to this Agreement.

2 If the franchisee fails to maintain the quality standard and any dispute arise between the franchisee and the customer then franchisee will be liable for the loss and damages to the customer. In the case of franchisor has to compensate the customer due to the fault of franchisee then franchisee will indemnify the franchisor. 

Termination

1. This agreement cannot be terminated by Franchisee before 3 years from the date of signing this agreement. If Franchisee wants to terminate the agreement before the period of 3 years from the signing of this agreement then the Franchisee has to pay 1,00,000 Rs in advance by giving 60 days advance notice. 

2. Franchiser shall be entitled to terminate this agreement, with immediate effect upon happening of one or more of the following:

      a. Any breach or violation of any of the terms and conditions of this agreement by the “Franchise”. 

      b. Failure of the “Franchise” to provide the services to the customers as per the expectations of Franchiser. 

Applicable Law

This agreement is governed by and constructed under the laws of India.

Dispute Resolution and Jurisdiction

1. Any dispute, controversy or claims arising out of or relating to this Agreement or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the provisions of the [Indian] Arbitration and Conciliation Act, 1996.

2. The place of arbitration shall be at Ajmer and any award whether interim or final shall be made, and shall be deemed for all purposes between the Parties to be made in Ajmer. 

3. The arbitral procedure shall be conducted in the English or Hindi language and any award or awards shall be rendered in English or Hindi. The procedural law of the arbitration shall be Indian law.

4. The rights and obligations of the Parties under, or according to, this Clause, including the arbitration agreement in this Clause, shall be governed by and be subject to Indian law, and the agreement shall be subject to the exclusive jurisdiction of the courts at Ajmer.

Annexure 1

1 Royalty fees for opening franchise in 450 Square Feet to 750 Square Feet is 10,000 Rs per month. 

2 Royalty fees for opening franchise in 750 Square Feet to 1000 Square feet is 15,000 Rs per month. 

*Note- In Square feet area the franchisee outlet, kitchen, storage, washroom, the sitting area or any other area which is related to the bakery is included. 

Signature

Franchisee

Franchisor

Two Witness

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