About the Business
Profit Allocation Breakdown:
– 40% from Small Lots
– 20% from Medium 1 Lots
– 20% from Medium 2 Lots
– 20% from Large Lots
Total Net Profit: ₹98,300
Enrollment Procedure:
To embark on a fruitful franchise journey, you’ll need to follow these key steps:
1. Letter of Intent (LOI) Signing:
As a franchisee, your initial step involves signing an LOI. This signifies your commitment and interest in the franchise opportunity. To proceed with discussions about the agreement, the franchise fee totaling 100% (i.e., ₹3 lakhs) must be paid upfront.
2. Letter of Authority (LOA):
Once the LOI is officially signed, the company will issue a Letter of Authority (LOA) to you. This grants you the privilege to participate in discussions, finalize terms, and ultimately sign the franchise agreement.
3. Agreement Execution:
The day when both parties execute the franchise agreement, exchanging copies, marks the official commencement of the agreement and the initiation of lot assignments. The remaining payment, if any, should also be settled on the same day by the franchisee.
4. Non-Disclosure Agreement (NDA):
The company requires a Non-Disclosure Agreement (NDA) from the franchisee to ensure the confidentiality of information pertaining to raw materials and stock production. The franchisee bears full responsibility for any violations of the NDA, with the company taking necessary actions as specified in the agreement.
5. Raw Material Dispatch:
After the NDA is in place, the company will dispatch raw materials to the franchisee within a time frame of 4 to 7 days at most.
6. QC In-Charge Appointments:
Both parties are required to appoint Dedicated Quality Control In-Charges (QCI) for their respective units. These QCIs will work in an exchange manner, with the QCI of the franchisee working at the franchise unit and vice versa. However, the employer must cover the salary, accommodation, and other expenses of their respective QCIs.
7. Production Commencement:
Upon receiving the raw materials, the franchisee can initiate the dipping and packing process and dispatch the finished products. An invoice copy for stock transfer and QC Report 1 issued at the franchise unit should accompany the finished products.
8. Quality Control Assessment:
After receiving the finished products, QC Report 1, and the invoice copy, the company will initiate the generation of QC Report 2, which will be conducted by the QCI of the franchise.
9. Payment Release:
If both QC Reports match up to a 90% accuracy level, the company will release the payment to the franchisee as per the agreed terms.
10. Financial Transactions:
All financial transactions must be conducted through Cheque/DD/RTGS only. Cash transactions are strictly prohibited at any stage of the franchise operations.
11. Production Commitment:
The franchisee is expected to execute at least one Premium lot and one Regular lot per month. However, the maximum production capacity will be calculated accordingly if the franchisee has the capability for higher production.
