Why Pradhan Banquet Franchise is the best choice of business for you
- Low setup cost: The initial buying fee is comparatively lower than any other brand offering a franchise.
- Unique franchise system: This is the first franchise system in the event management business that allows you to operate your banquet halls in a low competitive region allowing you to maximize market potential.
- Bonafide client base: We have successfully made a client base that is a fair share of the market allowing you access to our preexisting clients and making it easier to capture the market in new locations.
- Meticulously curated management and setup planning: We do the management and operation planning for you, sparing you the hectic stress of setting up an entire banquet hall and allowing you to focus on enriching your market presence while building a repertoire for your franchise.
- Exclusivity: Since we are focusing on owned, non-rented properties, it presents you with a business model that will enhance your property tenfold and increase the appeal of your very own venue.
- High ROI potential: You can benefit from a business model with the potential for high returns on investment because of strong brand recognition and an efficient operations plan.
Pradhan Banquet Franchise Terms and Conditions
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Introduction
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Purpose - This agreement lays down the foundational legal framework and guidelines that govern the relationship between Pradhan Banquet, a unit of Sarabala Event Pvt. Ltd., hereafter referred to as the ‘Franchiser’, and the chosen party, whomever it may concern, hereafter referred to as the ‘Franchisee’. This document ensures both the parties involved, understand and agree to their rights and obligations under this Franchise agreement.
- Parties involved - This franchise agreement includes Pradhan Banquet, a unit of Sarabala Event Pvt. Ltd., ‘Franchiser’, a corporation registered at [Franchiser’s address], and the ‘Franchisee’ as identified in the accompanying franchise agreement.
- Definitions -
i) Franchiser - A business entity that sells or grants a franchise for the sale of goods or operations of a service. Sarabala Event Pvt. Ltd. is the Franchiser.
ii) Franchisee - The individual or entity authorized to operate a franchise of the specified brand under this agreement.
iii) Franchise Agreement - The agreement of terms and conditions between the Franchiser and the Franchisee.
iv) Territory - The specific geographical area within which the Franchisee is stipulated to operate the franchise.
2. Grant of Franchise
- Rights granted - The Franchiser grants non-exclusive, non-transferable rights to the Franchisee to operate properties under the brand name “Pradhan Banquet” with the franchiser’s trademark, management planning, systems, and proprietary information per the terms and conditions specified in this Franchise agreement. These rights include access to the Franchiser’s business model, operational procedures, and marketing strategies.
- Territory - The Franchisee is authorized to operate within the outlined specifications presented in this Franchise Agreement. These specifications shall be strictly followed to ensure overlap and market viability of the Franchise.
3. Franchise Fee
- Initial Franchise fee - The Franchisee must pay an initial franchise fee of Rs 15 Lakhs upon execution of the Franchise agreement. This amount is payable within 10 days of the confirmation of the agreement with the Franchiser. This fee is inclusive of the right to use the Pradhan Banquet business system, site selection, and management assistance.
Failure to remit the initial franchise fee in full within the stipulated timeframe shall result in immediate termination of the Franchise agreement without further notice.
- Recurring fees -
i) Royalty fee - The Franchisee must pay a royalty fee equivalent to 30% of gross monthly income or a minimum of Rs 12,00,000 p.a. This fee shall cover the operational and developmental expenses incurred by the Pradhan Banquet Franchise system.
ii) Marketing fee - The Franchisee must remit a monthly marketing fee of 12% of gross sales. This fee is designated for funding marketing initiatives, including online, and offline channels, aimed at enhancing brand recognition for the Pradhan Banquet franchise.
4. Franchise specifications
Operational standards - The detailed standards, requirements, and operational guidelines must be adhered to by the Franchisee to maintain compliance with the franchise agreement.
- Property requirements - The franchisee must possess independently owned property meeting the specified minimum space requirements outlined in the Franchise Agreement. No leased or rented property shall be permitted to operate a Pradhan Banquet franchise.
- Space requirements (minimum) -
i) Main Hall - 6000 sq. ft.
ii) Kitchen - 2000 sq. ft.
iii) guest rooms - 5000 sq. ft.
iv) Storage space - 3000 sq. ft.
v) Lawn/ Garden - 5000 sq. ft.
vi) Parking area - 10000 sq. ft.
vii) Access road - 20 ft width
- Operation of a Pradhan Banquet franchise is conditional upon the presence of a lawn or garden area and a designated parking facility at the franchise location.
5. Franchisee Obligations
- Operational standards - The Franchisee must adhere to the operational standards outlined in the Franchise Agreement and Operations Manual. This includes the quality standards of products and services, health and safety regulations, and adhering to the pricing structure.
- Reporting - The Franchisee is obligated to submit reports of the franchise operations quarterly, including but not limited to, sales data, financial statements, and inventory levels.
- The franchisee is obligated to adhere to the management planning established by the Franchiser for operating the Franchise.
6. Franchiser Obligations
- Site selection - The Franchiser will be responsible to guide and approve the site selection of the Franchise per the specifications outlined in the Franchise Agreement and Operations manual.
- Operational support - The Franchiser shall delineate meticulous management plans and guidelines for the Franchisee to follow in operating the Franchise.
- Marketing support - The franchiser shall oversee and formulate marketing strategies according to the franchise location and ensure that the Franchisee adequately funds these advertising and marketing initiatives.
7. Term and Renewal
- The initial term of the Franchise Agreement is 99 years, commencing on the date of signing the agreement by both parties.
- Upon the expiration of the initial term, the Franchisee may have the option to renew the Franchise Agreement subject to discussion and planning between the two parties. The franchise may have the option to renew the term for another 99 years if no such negotiations take place. The renewal of the Franchise will be conditional upon the following:
i) The Franchisee must have complied with all the terms and conditions of the Franchise during the initial term mentioned in the Franchise terms and conditions manual.
ii) The franchisee must yield a successive profit margin of 30% for at least 4 years during the initial term. A customer satisfaction standard must be maintained throughout the first term of the agreement.
iii) The Franchisee has to pay a renewal fee of Rs 20000. The Franchisee must pay this fee within 20 days of renewal confirmation.
iv) The Franchisee must provide a written notice of their intentions to renew the Franchise Agreement 3 months prior to the expiration of the ongoing term.
The renewal of the Franchise Agreement is at the sole discretion of the Franchiser and will be confirmed in writing. The Franchiser reserves the right to review and, if necessary, amend the terms and conditions of the Agreement upon renewal to reflect current business practices and market conditions.
8. Termination
- Termination by Franchisee:
i) Failure to maintain standards of the Franchise and support services agreed upon by the Franchiser shall offer the grounds for termination of the Franchise by the Franchisee.
ii) The Franchisee may choose to terminate the agreement in case of failure to uphold operational standards and maintain brand integrity.
iii) The Franchisee is eligible to terminate the agreement if there is a change in ownership or control of the Franchiser under the condition that it adversely affects the operations and business prospects of the Franchisee.
- Termination by Franchiser:
i) The Franchiser may terminate the Franchise Agreement if the Franchisee fails to pay any fees including but not limited to Royalty fees, Marketing fees, and any other specified fee structure.
ii) If the Franchisee fails to adhere to the operational standards and guidelines established by the Franchiser, including but not limited to brand presentation requirements, health and safety regulations, and quality control measures, it shall be grounds for termination of the Agreement by the Franchiser.
iii) If the Franchisee engages in conduct that damages or has the potential to damage the reputation or goodwill of the Pradhan Banquet franchise system, the Franchisor may terminate the Agreement.
- Both parties are required to provide written notice of termination 120 days prior to the intended date of termination. This notice will be legally binding consisting of specified grounds for termination and material evidence supporting the claim.
- The agreement can be terminated at any time by mutual written consent of both parties
- Immediate termination:
i) If any of the parties involved engages in illegal activities or fails to follow the laws and regulations of the franchise, it shall lead to immediate termination of the Franchise.
ii) Non-payment of the initial franchise fee as stipulated in the Franchise Agreement shall lead to immediate termination of the agreement without further notice.
- Post-termination obligation
i) The Franchisee must immediately cease all usage of the Franchiser’s trademarks, trade names, service marks, logos, and proprietary materials.
ii) The franchisee must return all physical or digital confidential information, operations manual, training materials, and any other proprietary documents provided by the Franchiser.
iii) The Franchisee must settle all financial obligations owed to the Franchiser.
iv) The franchisee must make sure to de-identify the franchise location so as to not appear to be associated further with Pradhan Banquets. This shall include all decoration and identifiable items unique and distinct to the Pradhan Banquets franchise system.
v) The Franchisee must provide reasonable assistance to the Franchiser in transitioning the franchise location to a new franchisee or in winding down operations, as requested by the Franchiser.
Failure to comply with these post-termination obligations may result in legal action by the Franchiser to enforce compliance and seek damages for any resulting losses.
9. Transfer of Franchise
- The franchisee shall choose an eligible candidate, hereafter referred to as the ‘transferee’ for the transfer of Franchise.
- Eligibility of transfer:
- The Franchisee may choose to transfer the Franchise after the completion of the initial term of the agreement.
- The franchisee is eligible to transfer the Franchise once they have complied with certain operational milestones set forth by the Franchiser.
- The franchisee must maintain a good standing with the franchiser having followed the terms and conditions of the franchise agreement up to the date of the transfer request.
- The franchisee must not have any outstanding violations of the franchise agreement by the date of the transfer request. The franchisee must resolve all such violations before making the transfer request.
- Transfer Conditions:
- The franchisee must obtain prior written consent from the franchiser before transferring any franchise rights.
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- The transfer candidate must adhere to all the necessary qualifications set forth by the franchiser:
- The franchisee must demonstrate and prove sufficient financial stability and resources to operate the franchise.
- The transferee must have an eligible background, skills, and experience in the management and events field.
- The transferee must adhere and agree to the operational standards and guidelines established by the Franchiser, including any amendments and updates that the franchiser may require.
- The Franchisee and the transferee must agree to any non-compete clauses stipulated by the Franchiser to prevent competition with the Franchiser’s business.
- The proposed transfer must comply with all applicable laws and regulations, including any necessary filings or approvals from regulatory authorities.
d) Approval process
i) The franchisee must submit a written request to the franchiser regarding the decision to transfer the franchise to an eligible transferee 180 days before the intended date of transfer. This shall include the transferee’s background, qualifications, relevant experience, and other documentation as required by the franchiser.
ii) The franchisee must pay a sum of Rs 50000 transfer fee to the franchiser along with the transfer request. This amount is non-refundable.
iii) The franchiser must review the qualifications and checklist for the transfer of the franchise. The franchiser is eligible to conduct interviews and background checks to decide on the transfer.
iv) The franchiser shall provide a written approval or denial of the transfer within 90 days of receiving the transfer request and the fee. The franchiser is liable to provide specific reasons in case of rejection of the transfer.
v) If the transfer is approved, the legal requirements shall commence immediately to complete the transfer. The transferee will assume all the rights and obligations of the franchise agreement from the date of finalization of the new Franchisee.
vi) The franchisee is required to assist the transferee in assuming operations for 40 days from the commencement of the transferred franchise to ensure a smooth transition of the business.
vii) The franchisee remains liable for any obligations or breaches that occurred prior to the date of transfer. The transferee assumes all future responsibilities under the Franchise agreement.
10. Intellectual property
- Trademark use:
- The franchisee is authorized to use the Pradhan Banquet trademark, trade name, logo, and service mark solely to operate the franchise according to the Franchise Agreement. The franchisee is prohibited from using the Pradhan Banquet trademark in means that may harm the reputation or goodwill of the company.
- The franchisee is obligated to restrict usage of the Pradhan Banquet brand name and trademarks within the specified guidelines and instructions provided by the Franchiser.
- Upon termination or completion of the Franchise Agreement, the franchisee must cease all usage and remove the Pradhan Banquet logo, trade name, service mark, and trademark immediately.
- Protection of Intellectual Property (IP)
- The franchisee must ensure necessary steps are taken to mitigate the chances of unauthorized access or disclosure of proprietary information and safeguard confidentiality to protect the Intellectual Property of Pradhan Banquets.
- The franchisee must refrain from using the Pradhan Banquet Intellectual Property outside the scope of the Franchise agreement. The Franchisee is prohibited from using the IP for purposes of personal gain, outside business activities, or in any way that may portray negatively on the company’s image.
- The franchisee is obligated to inform the Franchiser immediately in case of any discrepancy regarding the brand’s IP. The Franchisee must cooperate with the franchiser in actions taken to enforce and protect Pradhan Banquet’s IP.
- The franchisee must sign non-compete and non-disclosure agreements to further protect the Franchiser’s IP.
- The franchisee must ensure all the employees and agents are aware and trained on the proper use of the Pradhan Banquet IP. The franchisee is required to maintain proper documentation and must present it to the Franchiser upon request.
- The franchiser reserves the right to conduct periodic audits of the franchisee’s use of the IP to ensure the guidelines are maintained. The franchisee is obligated to cooperate and provide relevant records and materials.
- The franchisee agrees to indemnify and hold harmless the franchiser from any claims, damages, or expenses arising from the Franchisee’s misuse of the IP.
- The Franchiser has the exclusive right to take legal action against any third parties for infringement of the Franchiser’s intellectual property rights. The Franchisee must not initiate any legal action regarding the Franchiser’s intellectual property without the Franchiser’s prior written consent.
- Enforcement:
- Any breach of the intellectual property provisions by the Franchisee will be considered a material breach of the Franchise Agreement, subject to immediate termination and legal action by the Franchiser.
- The Franchisee must bear all costs and expenses incurred in enforcing the intellectual property provisions, including attorney’s fees and litigation costs if the Franchisee is found to be in breach.
11. Confidentiality
- The Franchise must protect the confidentiality of any information, including but not limited to, business strategies, trade secrets, marketing plans, operations manuals, technical data, customer data, supplier data, and any other information shared by the Frachiser to operate the Franchise.
- The franchisee must take protective measures to deny unauthorized use, access, and disclosure to all the information shared for the Franchise.
- The franchisee must ensure that any third parties who receive confidential information shall be bound by confidentiality obligations as stringent as those in this agreement.
- Disclosure of confidential data shall only be permitted if required by law. In this case, the franchisee must provide the franchiser with prompt notice about these requirements, so the Franchiser may seek an appropriate protective order or waive compliance with the provisions of this agreement.
- The franchisee must return all information and data provided by the Franchiser after the completion or termination of the franchise term. The franchisee must provide a certified written notice of the destruction of all confidential data in their position at the full discretion of the franchiser.
- The franchisee must not disassemble, reverse engineer, or decompile any systems or products provided by the franchiser.
- The franchisee must inform the franchiser immediately in case of any breach of confidentiality.
- The franchisee must ensure proper training on the importance of confidentiality and the specific obligations of all parties who have access to the Franchise’s confidential information and are involved in operating the franchise.
- The franchisee acknowledges the irreparable harm to the franchiser, consequential to the breach of any confidential data of the franchise.
- In the event of a breach or threatened breach of confidentiality, the franchiser is entitled to seek injunctive relief, specific performance, and any other legal or equitable remedies available, without the necessity of proving actual damages.
- The franchisee agrees to indemnify and hold harmless the franchiser from and against any losses, damages, liabilities, costs, and expenses arising out of or in connection with any unauthorized use or disclosure of confidential information by the Franchisee or its employees, agents, or contractors.
- The confidentiality obligations outlined in this agreement shall survive the termination or expiration of the Franchise Agreement for 1 year or for as long as the confidential information remains proprietary and confidential, whichever is longer.
12. Governing laws
- This agreement shall be governed by the laws of the Indian government, without regard to its conflict of laws principles.
- Any disputes arising under this agreement shall be resolved through [Mediation/Arbitration] in [Address]. If mediation or arbitration fails to resolve the dispute, the parties may pursue legal action in the courts of India.
- Notwithstanding the foregoing, either party may seek interim or provisional relief, including but not limited to, a temporary restraining order, preliminary injunction, or other equitable relief, from a court of competent jurisdiction if necessary to protect its rights or property pending the completion of the mediation/arbitration process.
13. These terms and conditions, together with the Franchise Agreement, constitute the entire agreement between the parties. All prior negotiations, representations, or agreements are superseded by this document. Any amendments to these terms and conditions must be in writing and signed by both parties. No verbal modifications will be recognized. All notices required under this agreement must be sent to the addresses specified in the Franchise Agreement.
Signatures
Franchiser: Date:
Franchisee: Date:
For details please call @ +91 8100280787 or mail sppradhan2017@gmail.com
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