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10021851-Sole Proprietor-Template Franchisee Agt-Diagnostic Services-Sample Collection Centre (PCC) - 23!06!2021
10021851-Sole Proprietor-Template Franchisee Agt-Diagnostic Services-Sample Collection Centre (PCC) - 23!06!2021
This Franchise Agreement For Diagnostic Services- Sample Collection Centers (‘AGREEMENT’) is made on the
________day of ________________, 20__ (“Execution Date”),
BY AND BETWEEN
LUPIN HEALTHCARE LIMITED, a company incorporated under the laws of India and having its registered office
at 3rd Floor, Kalpataru Inspire, Off Western Express Highway, Santacruz (East), Mumbai - 400 055 holding
Permanent Account Number AABCL9756A (hereinafter referred to as “The Company”, which expression shall
unless repugnant to inconsistent with the context or meaning thereof, be deemed to mean and include its successors
and assigns) of the One Part.
AND
_____________________________________, a Sole Proprietary Concern having its principal place of business at
__________________________________________________ and holding Permanent Account Number _____________,
(hereinafter referred to as "Franchisee” which expression shall unless repugnant to or inconsistent with the context
or meaning thereof, be deemed to mean and include the heirs, executors, administrators and assigns of the Sole
Proprietor) of the Other Part.
WHEREAS:
A. The Company is in the business of providing health care services across India.
B. The Franchisee is interested in opening up a Sample Collection Centre (“PCC”) on a franchisee basis in the
name and style of the Company, by using and implementing the intellectual properties of the Company for
carrying on the collection of samples in its Premises to facilitate the customers of the Company and
undertakes to get the tests conducted from the Company and is thus desirous of entering into a Franchise
arrangement with the Company;
C. The Franchisee represents that it has a good and sufficient title to the premises situated at
________________________________________________________________________________________________
________________________________________________________________________________ (the “Premises” )
D. The Franchisee understands and acknowledges the importance of the Company’s high standards of quality,
cleanliness, appearance, and service and the necessity of operating the PCC hereunder in conformity with
the Company’s standards and specifications as well as in conformity and compliance with the statutory
rules, regulations, notifications, guidelines issued by Central, State or Local Authorities.
E. The Franchisee represents and warrants that it has the capability and resources to organize, collect, pack and
send samples to the Company in accordance with specifications/instructions, specified by the Company;
and otherwise has and or shall obtain all the necessary approvals to establish, operate, run a PCC and
provide the related services more specifically defined hereinafter.
F. Based on the representations and warranties of the Franchisee and due compliance and fulfillment of the
Conditions Precedent defined below, the Company has agreed to grant good and sufficient rights to the
Franchisee to perform the “PCC Services” (defined hereinafter,) in the name and style given by the
2. INTERPRETATION CLAUSE
In this Agreement, unless the contrary intention appears:
a) A statute or a provision of a statute shall be construed as a reference to that statute or provisions, as
extended, modified, amended or re-enacted at the relevant time;
b) A clause includes all its sub clauses; if any;
c) clause headings are for convenient reference only and have no effect in limiting or extending the
language of the provisions to which they refer;
d) words in the singular number include the plural and vice versa; and
e) where a word or phrase is given a particular meaning, other parts of speech and grammatical
forms of that word or phrase have corresponding meanings.
3. CONDITIONS PRECEDENT
3.1 The Franchisee represents that it shall set up a PCC at the Premises having the necessary infrastructure,
fixtures and fittings within thirty (30) days of the execution of this Agreement.
3.2 The Franchisee shall have in place the requisite infrastructure for fire detection and control, extinguishers,
waste management including biomedical waste collection as required under Applicable Laws and local
Authorities rules and guidelines as also all requisite facilities for well and sufficiently managing the PCC
and performing the PCC Services, including but not limited to such as electricity, Air conditioned units,
water supply, backup generators etc. shall be installed, operational and maintained for fully and effectively
functioning the PCC.
3.3 The Franchisee shall provide copies of all Approvals obtained from the various Authorities, to establish,
setup, and operate the PCC and provide the PCC Services, including but not limited to the rights to use the
Premises, upon written request from the Company.
6.2 Approvals:
The Franchisee shall obtain and maintain all required licenses, permits, consents, authorizations and
certificates as may be required under Central, State or Local Laws for running and maintaining the PCC.
The Franchisee shall conduct its business in compliance with all Applicable Laws.
6.7 The Franchisee shall deliver the complete test report, as received from the Company, with diligence and
without any mistake or flaw(s), to the patient / client, in its original form without any additions, deletions
or alterations. The Franchisee shall give reports on the stationery provided by the Company for the tests
done by the Company at their Laboratory and/or for tests conducted outside India at Laboratory as
provided by the Company.
6.9 Employees:
The Franchisee shall employ at its own cost One (1) trained phlebotomist(s) who is a laboratory technologist
holding a recognized DMLT/MLT Diploma for collection and handling of samples at their own expense.
These phlebotomist/laboratory technologists will be trained for a minimum period of one (1) week at the
laboratory of the Company prior to his/her deployment at the PCC. A fully qualified back up support to
cater for his/her leave, sickness, and vacations/ absenteeism is obligatory on the part of the Franchisee and
his / her training will be the responsibility of the Franchisee itself. The Franchisee shall take such steps as
are necessary to ensure that all its employees /staff preserve good conscientious customer relations; render
competent, prompt, courteous, and knowledgeable service. Franchisee shall be solely responsible for all
employment decisions and functions of the PCC, including, without limitation, those related to hiring,
firing, training, wage and hour requirements, record keeping, supervision, discipline of employees and any
other statutory requirement. The Franchisee shall keep copies of the relevant educational qualifications of
the phlebotomist/laboratory technologists. The Franchisee shall provide documentary proof for compliance
with applicable laws related to the employees employed by the Franchisee for the purposes of this
Agreement as and when required by the Company.
6.11 Timings:
The Franchisee shall keep the PCC open and in normal operation for such minimum hours and days as the
Company may specify. The Franchisee shall ensure that the PCC is not used for any other purpose or
6.14 Transportation:
The Franchisee shall transport the collected samples from the center to the processing lab of the Company. It
is agreed and understood by the Franchisee that the Company shall not be responsible, in any manner
whatsoever, for any failures, delays, leakage, breakages, loss in transit, deterioration due to temperature
variation, e.g., vaporization of dry ice, thawing of refrigerated gel packs etc. of the samples in which case no
report shall be issued by the Company.
6.16 Insurance:
12. NON-COMPETE
12.1 The Franchisee shall not enter into any pathology testing activity or enter into similar covert/ overt
Agreement / MOU / Contract / Tie-up or any other arrangement whatsoever with any other Third Party, in
any form or substance during the duration of this Agreement.
12.2 The Franchisee fully understands that the samples collected at the PCC shall be handed over to the
Company for the tests to be conducted at the laboratories of the Company and or as per the instructions
given by the Company only and the Franchisee shall not send or hand-over, under any circumstances
whatsoever, any sample to any other Laboratory, to any person/ or competitor of the Company, without
written consent of the Company.
14. TERMINATION
14.1 The Company may at any time during the Term of this Agreement terminate this Agreement without cause
by giving to the Franchisee a three (3) months prior written notice and thereupon this Agreement shall come
to an end on expiry of such period.
14.2 Without prejudice to the aforegoing, the Company, at its discretion, shall also have the right to terminate
this Agreement forthwith and with immediate effect in any of the following events:
a) Breach of any of Franchisee’s obligations, representation and warranties under this Agreement.
b) The Franchisee attempts to impose any contractual obligations upon the Company or conducts
itself in such manner as would create or inflict increased burden upon the Company.
c) The Franchisee does not allow inspection of its Premises to the Company or its agent and or fails to
produce on demand its books, accounts, and records and or fails to take corrective action to rectify
any deficiencies or defects, detected during any audit or inspection within the prescribed period.
d) The Franchisee does not make full payment to the Company of the receipts for three (3)
consecutive days and or the Franchisee refuses/neglects to reconcile accounts for the month by the
15th day of the subsequent month or, the accounts do not reconcile and the Franchisee
refuses/neglects/is unable to remove/clear discrepancies to the satisfaction of the Company
and/or the Franchisee refuses/neglects/is unable to provide to the Company relevant
certificates/forms as the case may be, under the applicable tax laws for all and any deduction(s)
made from the payment(s) made by the Franchisee to the Company.
e) The Franchisee is in violation of any Applicable Laws and regulations and or any environmental/
local health/sanitary/safety or statutory regulations for disposal of all waste, including Bio
Medical Waste.
f) The Franchisee misuses and or allows to be misused the Intellectual Property and or Proprietary
Materials provided by the Company in any manner.
g) The Company contests in any court or proceeding the validity of the Company’s ownership of its
Intellectual Property or Proprietary Materials;
h) Franchisee or any or all its Directors/members/associates/employees commit any crime, offence
or act which in the Company's reasonable judgment is likely to adversely affect the goodwill of the
business of the Company;
15. CONFIDENTIALITY
The Franchisee shall not, during the term of this Agreement or thereafter, communicate, divulge, or use
except under the present agreement for the benefit of the Company, any confidential information,
knowledge, or know-how, any secret/ information concerning the methods of operation of business
activities, plans, collaboration etc. of the Company hereunder, which may be communicated to the
Franchisee or of which Franchisee may be appraised by virtue of Franchisee’s operation under the terms of
this Agreement or Franchisee’s association with the Company. The Franchisee shall not use the confidential
information for any purpose other than in connection with the purpose for which the same is granted. In
case the Franchisee is found to be indulging in any such activity, then without prejudice to any rights or
remedies that the Company may have under law, the Company shall be entitled to terminate this
Agreement forthwith without giving any notice whatsoever. Upon the Company’s written request,
Franchisee shall return promptly to the Company all written materials and documents, as well as any
computer software or other material, made available or supplied by the Company to the Franchisee that
contains confidential information, together with any copies thereof, or destroy the same, and upon the
Company’s request, provide a certificate of destruction. Confidentiality obligations under this Agreement
will survive the expiry or early termination of this Agreement for a period of three (3) years from the date of
17. NOTICES:
All notices under this Agreement must be in writing and either mailed by certified or registered mail,
express courier or hand delivered to each Party at the address set forth below:
i]To Company: Attn: Mr. Ravindra Kumar
E-mail: ravindrakumar2@lupindiagnostics.com
19. MISCELLANEOUS:
19.1 Entire Agreement: This Agreement contains the entire understanding between the Parties regarding the
granting of the franchise and obligations of the Parties regarding the collection centers and their functioning
and supersedes any and all agreements, either oral or written, between the Parties hereto. Each Party to this
Agreement acknowledges that no representations, inducements, promises, or agreements, orally or
otherwise, have been made by any Party, or anyone acting on behalf of any Party, that are not embodied
herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or
binding.
19.2 Amendment: No amendment or waiver of any provision of this agreement nor consent to any departure by
any of the parties there from shall be effective unless the same shall be in writing and signed by the Parties
hereto and then such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given.
19.3 Waiver: No failure on the part of any Party to exercise, and no delay in exercising, any right, power or
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privilege hereunder shall operate as a waiver thereof or a consent thereto; nor shall any single or partial
exercise of any such right, power or privilege preclude any other of further exercise thereof or the exercise of
any other right, power or privilege.
19.4 Remedies: The remedies herein provided are cumulative and not exclusive of any remedies provided by
Applicable Law.
19.5 Severability: If any provisions of this Agreement are declared to be invalid, unenforceable or illegal by any
competent arbitral tribunal or court, such invalidity, unenforceability or illegality shall not prejudice or
affect the remaining provisions of this Agreement which shall continue in full force and effect.
19.6 No Third Party Rights: Nothing in this Agreement is intended or will be construed to confer on any Party
other than the Parties to this Agreement, any rights, benefits or remedies of any kind, and no other party
will be deemed to be a third party beneficiary.
19.7 Good Faith: upon the execution of this Agreement, each of the Parties hereto shall be bound to discuss the
provisions hereof in good faith and shall deal fairly with each other to further the performance and
enforcement of this Agreement, without destroying or injuring the rights of the other Party to enjoy the
benefits under this Agreement.
19.8 Expenses: Each Party hereto will bear the legal, accounting and other expenses incurred by such Party in
connection with the negotiation, preparation and execution of this Agreement and the documents and
transactions contemplated hereby.
Tests will be performed as per the rate card, provided by the Company to Franchisee.
All such rates shall be uploaded in LIMS and will be subject to periodic review and changes, which will be informed
by the Company to Franchisee from time to time.
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