Franchise Agreement

An agreement or license between 2 legally independent

parties which gives:
A person or a group of people (franchisee) the right to market a
product or service using the trademark of another business
(franchisor)
The franchisee the right to market a product or service using the
operating methods of franchisor
The franchisee the obligation to pay the franchisor fees for these
rights
The franchisor the obligation to provide rights and support to
franchises

Examples
Subway
KFC
McDonalds

 Advantages
Low risk
Growth
Ease of financing and operational
support
Advertising

Disadvantages
Royalty/Fees
Lack of control

Barista Franchise
Agreement
Franchise Cost : Rs 50 Lakhs (Master)
Minimum Floor area required: 1000
sq ft
Term: 6 years
Renewable : Yes
ROI: 20%
Breakeven Period: 4 to 5 years

 Unit Franchise:
Investment : Rs15 to 20 Lakhs
Brand Fee : Rs 6 lakhs
Royalty : 8%

Expansion Locations
New delhi, Kerala, Assam, Maharashtra

Performance Guarantee : No
Other investment required: No

 Type of property: Hi-Street Mall,

Multiplex
Training Details
Operating Manuals for Franchise: Yes
Training location: Onsite and HO both
Field Assistance: Yes