FRANCHISE AGREEMENT

THIS AGREEMENT is made at ----------- this ----- day of -------------

Between
M/s SuryaRay Elixirs !t" #td"$ a %om&any duly re'istered under the (om&anies A%t$
)*+, ha!in' its re'istered offi%e at lot No -.$ Road No /$ 0u1ilee Hills" H23-+,..44
5hereinafter 6nown as 7Franchisor7 and in%ludes its su%%essors 8 assi'ns9
And
::::::::::"$ a %om&any duly re'istered under the (om&anies A%t$ )*+, ha!in' its
re'istered offi%e at ::::::::::::::::::::::::::::::::: 5hereinafter 6nown as
;Franchisee< and in%ludes its su%%essors 8assi'ns9"
=hereas>
5a9 ?ran%hisor is &rimarily in the restaurant and hos&itality 1usiness and @owns uses
and &romotes %ertain trade and 1usiness names$ and %ommer%ial sym1ols in
%onne%tion with the o&eration or the Restaurant under trade name of Atreme
S&orts Bar with a uniform 1usiness format" S&e%ially desi'ned interiors" Menu$
?ood and Be!era'e offerin's$ and &ro&rietary &rodu%ts$ methods "and Standard
B&eratin' ro%edures"
519 The ?ran%hisor@s system is %om&rehensi!e em&hasiCin' &rom&t and %ourteous
ser!i%e$ %ondu%e atmos&here$ adheren%e to %ertain standards and &oli%ies of the
?ran%hisor$ in%ludin' without limitation of sto%6in' of the desi'nated &rodu%ts"
the use of only &res%ri1ed eDui&ments$ furniture and fixtures in the outlet$ stri%t
adheren%e to desi'nated food and 1e!era'e s&e%ifi%ations$ use of only &res%ri1ed
desi'ns and layout$ num1er of ta1les and %hairs and standards Duality ser!i%e
and ersonnel"
5%9 The ?ran%hisee is the lesser and as su%h lessee is in use$ o%%u&ation of a
&remises for a %ommer%ial user admeasurin' a&&rox ::::: %ar&et area at
:::::::::::::::::::::::::::::::::::::: 5#ay But lan Annexed as
Annexure A9 hereinafter referred to as the Esaid Franchised OutletF"
5d9 The ?ran%hisee$ interested in settin' u&$ o&eratin' and runnin' the said
?ran%hised Butlet under the Atreme S&orts Bar trade name and style and
o&erational &ro%edures of the ?ran%hisor"
5e9 The fran%hisee un%onditionally a'rees and underta6es to set u& run and o&erate
said ?ran%hised Butlet in stri%t %onformity with the ?ran%hisorFs Rules and
Re'ulations and Standard B&eratin' ro%edures and in the manner and u&on the
terms and %onditions %ontained herein"
5f9 The &arties hereto desirous of exe%utin' this ?ran%hise A'reement$ whi%h
re%ords the terms and %onditions a&&li%a1le to the ?ran%hise relationshi&
1etween the &arties as under>-
NOW THIS AGREEMENT WITNICSSETH AND.IT IS HEREB AGREED B
AND BETWEEN THE !ARTIES HERETO AS FO""OWS# .
$. DEFINITIONS
?or the &ur&ose or this A'reement the terms defined hereunder in this Arti%le shall ha!e
the meanin' s&e%ified unless the %ontext otherwise reDuires>
)") 7Franchised Outlet%restaurant7 shall mean the entire stru%ture ere%ted and to
1e ere%ted on the &ro&erties/lands and all 1uildin's$ to'ether with the eDui&ment
installed therein to 1e used for the &ur&ose or the restaurant in%ludin'$ 1ut not
limited to$ all &lum1in'$ heatin' and li'htin' eDui&ment$ ele!ators$ air-
%onditionin' eDui&ment$ exterior and interior si'na'eFs$ tele&hone eDui&ment
5ex%e&t that leased from the Tele&hone 3e&artment9$ furniture" 5in%ludin'
furniture 1rou'ht in 1y the fran%hisee9 and eDui&ment" o&eratin' su&&lies$ and
nil related fa%ilities %onstru%ted$ installed or 6e&t in or a&&urtenant to the
restaurant" as also all additions$ extensions$ modifi%ations thereto$ as may 1e
effe%ted 1y the ?ran%hisee in %onsultation with the ?ran%hisor hereafterG for
whi%h the ro&rietary Mar6s and Systems are 'ranted" 5#ayout lan Annexed as
Annexure A9
)"H 7Franchise & !ro'rietar( Mar)s7- Shall mean ;Atreme S&orts Bar<$
;Atreme<$ ;3onFt do this at home< and ;A< or whi%h are &ro&rietary mar6s of
the ?ran%hisor in any form$ manner$ font$ %olour and siCe as
&res%ri1ed/authorised/&ermitted 1y the fran%hisor from time to time"
)"4 7S(ste*7 - Shall mean the uniDue rodu%t Bfferin'" Am1ien%e$ Standard
B&eratin' ro%edures$ Manuals$ (ontrol ?orms$ Rules and Re'ulations$
Standard Re%i&e ?orms$ Human Resour%e oli%ies et% of the ?ran%hisor whi%h
shall 1e do%umented for the %on!enien%e of the fran%hisee
)"- The ;A+ree*ent< or 7this A+ree*ent7 shall mean this instrument as ori'inally
exe%uted and deli!ered" or$ amended or su&&lemented$ as so amended or
su&&lemented"
)"+ The 7Ter* o, the A+ree*ent< shall mean the term or this A'reement as
hereinafter &ro!ided in Arti%le 4 1ut su1Ie%t to earlier termination or
determination thereof in terms of Arti%le )- hereof"
)", The 7Date o, Co**ence*ent< of the A'reement shall mean the date or
exe%ution of the a'reement"
)"/ 7Fiscal ear7 shall mean the twel!e-month &eriod %ommen%in' on the first day
of A&ril and endin' on the 4)
st
day or Mar%h ex%e&t that the first ?is%al 2ear
shall 1e the &eriod %ommen%in' on the 3ate of %ommen%ement and endin' on
the followin' 4)
st
of Mar%h"
)"J 7Auditor7 shall mean the Auditor who shall 1e a (hartered A%%ountant or a firm
of (hartered A%%ountants mutually sele%ted 1y the ?ran%hisor and ?ran%hisee"
)"* 7Net Re-enue7 for su%h ?is%al 2ear shall mean 'ross re!enues arisin' dire%tly
or indire%tly from the %ondu%t of the 1usiness and su%h 'ross ta6in's$ in%ludin'
1ut not limited to all %ash$ 3e1it/%redit %ards$ (heDuesG 3emand drafts" &ay
orders or any other form or remittan%e deri!ed from sale of food and 1e!era'e
items$ furniture$ %ro%6ery$ %utlery$ %uriosities$ musi% %om&a%t dis%s or %assettes$
ti%6ets and any other mer%handise or items$ all 'oods sold and deli!ered or
ser!i%es &erformed 1y the fran%hisee$ all in%omes re%ei!ed 1y way of rentals for
film and hoto shoots$ e!ent &romotions$ and / or fun%tions or &arties" Either
%atered within the fran%hised restaurant or outside 1y the ?ran%hisee" Net
Re!enue shall ex%lude all %entral$ state sales tax$ !alue added tax$ or ser!i%e tax
%olle%ted from the %ustomer and &aid to the a&&ro&riate taxin' authority"
.. GRANT
H") ?ran%hisor here1y 'rants ?ran%hisee the ri'ht and li%ense$ and ?ran%hisee here1y
a%%e&ts the o1li'ations$ su1Ie%t to the terms and %onditions des%ri1ed herein$ to
set u&$ o&erate and run the fran%hise here1y 'ranted as &er the system only at the
fran%hised outlet/Restaurant"
H"H ?ran%hisee is not 'ranted any ri'ht hereunder to su1li%ense the ro&rietary
Mar6s or System$ ro&rietary &rodu%ts et% to any &arty"
H"4 ?ran%hisee a%6nowled'es and a'rees that>
H"4") the ri'hts 'ranted to ?ran%hisee in this A'reement ar% non-ex%lusi!e"
and this A'reement %on!eys no territorial ri'hts to ?ran%hisee$ and
H"4"H ?ran%hisee is a%Duirin' no ri'hts hereunder other than the ri'ht to use
the ?ran%hised Mar6s and the@ System at the ?ran%hised Butlet in
a%%ordan%e with the ex&ress terms of the A'reement"
/. TERM & TERMIATION
4") This A'reement shall 1e !alid and su1sistin' for a &eriod of fi!e years from the
date hereof 5hereinafter referred to as 7the Term79"
4"H Notwithstandin' %lause 4")$ on the ex&iry of a &eriod of fi!e years from the date
of hereof$ the ?ran%hisor shall$ after re!iewin' the &erforman%e of the
?ran%hised Butlet$ ha!e the o&tion 5i9 to terminate$ or$ 5ii9 to extend the
a'reement for an additional term of three years on the same terms and %onditions
as herein %ontained"
4"4 In the e!ent that the ?ran%hisee sells or &ur&orts to sell more than +) &er%ent of
its sta6e in the ?ran%hised Butlet$ then the new owners of the ?ran%hised Butlet
shall not ha!e the o&tion to terminate this a'reement" The new owners shall
%ome on 1oard/ ta6e o!er the ?ran%hised o&erations on an as is where is 1asis"
The new owners will also 1e su1Ie%t to all the terms 8 %onditions of this
a'reement$ the ?ran%hisee shall enter in to ne'otiations with the new owners and
at the same time he shall 6ee& the ?ran%hisor a&&rised of the full details" The
transfer of ?ran%hise shall not ta6e &la%e without the written %onsent of the
?ran%hisor" ?urther more the ?ran%hisor shall retain the ri'ht to %olle%t
Re'istration fees and Trainin' fees and or any other %ost in%urred$ due to su%h
ta6e o!er of ?ran%hised o&erations" If for any reason$ the ?ran%hisee wishes to
terminate this A'reement it may do so 1y 'i!in' the ?ran%hisor a &eriod of three
months to remedy any 'rie!an%e or misunderstandin'$ and on the &ayment of all
outstandin' dues"
0. FRANCHISOR1S OB"IGATIONS
-") ?ran%hisor shall loan to ?ran%hisee one set of the ?ran%hised B&erations Manual
and the Rules and Re'ulations in En'lish for o&eration of the ?ran%hised Butlet"
-"H ?ran%hisor$ or its desi'nee shall &ro!ide initial trainin' and on-'oin' trainin' to
?ran%hiseeFs &rin%i&als and their assi'nee as des%ri1ed In Se%tion +") hereof"
-"4 The ?ran%hisor shall li%ense to the ?ran%hisee the use of a&&ro&riate software 5as
a&&ro!ed 1y the ?ran%hisor9 for the fran%hised outlet to re%ord transa%tions" The
?ran%hisee shall reim1urse the ?ran%hisor/ &ay the ne%essary li%ense fees and
other in%idental %osts to the ?ran%hisor or to any !endor that the ?ran%hisor may
dire%t" The %osts so &aid/ reim1ursed shall not form a &art of the ?ran%hise ?ees/
3e&osit$ 1ut shall 1e a se&arate %ost whi%h shall 1e 1orne 1y the ?ran%hisee" The
?ran%hisor$ howe!er shall retain the ri'ht to u&'rade and/ or modify I alter the
existin' system Software #i%ensed$ with an alternate system the %ost of whi%h
shall 1e 1orne 1y the ?ran%hisee"
-"- ?ran%hisor shall &ro!ide su%h standard re%ord-6ee&in' system for the 1usiness as
shall 1e a!ailed to other fran%hisees under the system in the territory and shall
su&&ly sam&les of forms ne%essary for effi%iently administerin' su%h re%ord
6ee&in' system the %ost or whi%h shall 1e 1orne 1y the fran%hisee and whi%h %ost
shall not form &art of the fran%hise fee"
-"+ 3e&ute to the fran%hisee an Butlet mana'er$ Asst" Butlet Mana'er$ and an Butlet
Head (hef" to mana'e the o&erations of the outlet" Howe!er the entire %ost$
in%ludin' 1ut not limited to salary$ ro!ident ?und$ ESI($ a%%ommodation$ and
tra!el ex&enses" Bf su%h &ersonnel shall 1e 1orne 1y the ?ran%hisee" The a1o!e
mentioned &ersonnel %an only 1e de&uted 1y the ?ran%hisor and the fran%hisee
shall ha!e no ri'ht to sele%t$ hire or terminate the ser!i%es of the same"
-", ?ran%hisor shall &ermit ?ran%hisee@s em&loyees to %onsult at reasona1le times
with ?ran%hisor@s &ersonnel at ?ran%hisor@s &rin%i&al &la%e of 1usiness$ or 1y
tele&hone or other means of %ommuni%ation$ at reasona1le times and when su%h
&ersonnel are a!aila1le"
-"/ ?ran%hisor shall &rom&tly list the name$ address$ and tele&hone num1er of the
?ran%hised Butlet in su%h a&&ro&riate dire%tories as are &u1lished 1y ?ran%hisor
from time to time"
-"J ?ran%hisor shall &ro!ide to ?ran%hisee$ su%h mar6etin' mer%handisin'$
ad!ertisin'$ resear%h data$ and ad!i%e as may from time to time@ 1e de!elo&ed$
whi%h ?ran%hisor 1elie!es would 1e hel&ful or ne%essary or the o&eration of the
?ran%hised Butlet or as reDuested 1y ?ran%hisee"
-"* ?ran%hisor shall &ass on 1enefits of its %ontra%ts/ a'reements with strate'i%
&artners$ to the fran%hisee where!er a!aila1le" The ?ran%hisor shall also &ass on
the 1enefits of ne'otiated !endor &ri%es"
-"). ?ran%hisor will in!ol!e ?ran%hisee in &romotional s%hemes entered into and &ass
on the$ 1enefits a%%rued to the fran%hisee thereof"
2. FRANCHISEE1S OB"IGATIONS
+") K& to two 5H9 &ersons$ who shall 1e ?ran%hisee@s &rin%i&als and/or assi'nee$ shall
attend$ for no fee$ and shall satisfa%torily %om&lete$ ?ran%hisor@s initial trainin'
at ?ran%hisor@s ?ifteen -day orientation &ro'ram at su%h lo%ation as may 1e
desi'nated 1y ?ran%hisor" Additional em&loyees of ?ran%hisee may attend su%h
trainin' at ?ran%hisor@s then-%urrent trainin' fee %har'ed for su%h trainin'"
?ran%hisee@s &rin%i&als and outlet mana'er shall attend su%h additional trainin'
as ?ran%hisor shall reDuire from time-to-time" All indi!iduals attendin' trainin'
shall 1ear all ex&enses asso%iated therewith$ in%ludin'$ without limitation$
ex&enses for food$ trans&ortation$ and lod'in'" Notwithstandin' anythin'
%ontained hereina1o!e$ any initial trainin' and/or additional trainin' a!ailed of
1y the H 5two9 &rin%i&als and/or their assi'nees of the ?ran%hised Butlet$ shall 1e
for no fee" As a s&e%ial %ase the initial trainin' fee for the o&enin' staff shall 1e
wai!ed off" All further trainin' shall 1e %har'ed at %urrent trainin' tarrifs$ The
?ran%hisor will from time to time %ondu%t a &ersonnel audit$ and if the
?ran%hisor feels that further trainin' is reDuired then the ?ran%hisor will ha!e to
ensure that his em&loyees ha!e %om&leted the reDuisite trainin'"
+"H ?ran%hisee shall follow all of the dire%tions in res&e%t of all as&e%ts of the
1usiness made 1y ?ran%hisor in order to maintain and &reser!e the ?ran%hisor@s
all ri'hts$ 'oodwill and re&utation in the 1usiness$ the ?ran%hised Mar6s$ and the
System" ?ran%hisee a%6nowled'es and a'rees that all su%h future ri'hts$ 'oodwill
and re&utation shall inure to the 1enefit of ?ran%hisor" ?ran%hisee shall$ u&on the
reDuest of ?ran%hisor$ &ro!ide @?ran%hisor with su%h information as it may
reasona1ly reDuest with re'ard to the o&eration and %ondu%t of the Business"
+"4 ?ran%hisee shall$ %om&ly$ ex%e&t as otherwise a&&ro!ed in writin' 1y ?ran%hisor
with the followin' reDuirements throu'hout the term of this A'reement>
+"4") ?ran%hisee shall furnish ?ran%hisor with all 'o!ernin' do%uments of
?ran%hisee and any-other do%uments related thereto whi%h ?ran%hisor
may reasona1ly reDuest and any amendments thereto$
+"4"H ?ran%hisee shall maintain a %urrent list of all owners of re%ord and all
1enefi%ial owners of any %lass of !otin' sto%6 of ?ran%hisee and shall
furnish the list to ?ran%hisor u&on reDuest"
+"- ?ran%hisee shall %ommen%e o&eration of the ?ran%hised Butlet within three
months from the date of %ommen%ement of this a'reement"
+"+ In %ondu%tin' the Business$ ?ran%hisee shall a%t stri%tly in a%%ordan%e with the
?ran%hise B&erations Manual and the Rules and Re'ulations 5the %urrent edition
of whi%h will 1e made a!aila1le in due %ourse9 and all future amendments
thereto as may 1e &ro!ided to ?ran%hisee from time to time 1y ?ran%hisor and
shall o&erate the ?ran%hised Butlets in %ohesion with the ?ran%hisor@s de&uted
&ersonnel under the System$ Human Resour%e oli%ies and in a%%ordan%e with
the terms and %onditions of this A'reement"
+", ?ran%hisee shall 6ee& the ?ran%hised Butlet and its furnishin's$ hand outs$
menus" et% in a 'ood state of re&air and de%oration so as to enhan%e the
re&utation of the ?ran%hised Mar6s$ the Business$ and the System$ and shall not
%han'e the num1er of %o!ers without$ first o1tainin' ?ran%hisor@s written %onsent
&ursuant to Se%tion +", hereof"" The fran%hisee shall also maintain %ro%6ery and
%utlery as &er ?ran%hisors desi'n s&e%ifi%ations as &er the dire%ted &ar sto%6
!alues" All musi% and %ommuni%ation at the fran%hised outlet will also 1e in
a%%ordan%e with the ?ran%hisors dire%tions"
+"/ ?ran%hisee shall su1mit to ?ran%hisor any material alterations$ im&ro!ements$
de!elo&ments$ or %onstru%tion wor6 &ro&osed for the ?ran%hised Butlet 1efore
any su%h wor6 is %arried out 1y ?ran%hisee$ and shall not alter the a&&earan%e of
the ?ran%hised@ Butlet Br ma6e any material alterations$ or im&ro!ements$ or
&lan any %onstru%tion or$ de!elo&ment thereto other than in a%%ordan%e with the
&ro!isions of the Rules and Re'ulations and without the &rior written %onsent of
the ?ran%hisor$ whi%h su%h %onsent shall not 1e unreasona1ly withheld"
+"J ?ran%hisee shall &rominently dis&lay at the ?ran%hised Butlet the ?ran%hised
Mar6s in exterior and interior si'na'e and in all ad!ertisin' and &romotion of the
?ran%hised Butlet"
+"* ?ran%hisee shall o&erate the $?ran%hised Butlet ex%lusi!ely under the ?ran%hised
Mar6s and shall feature the ?ran%hised Mar6s in all ad!ertisin' matter and other
&romotional material$ to'ether with standard distin'uishin' %hara%teristi%s of the
System &res%ri1ed 1y ?ran%hisor or under su%h other ?ran%hised Mar6s as may
1e desi'nated in writin' and ado&ted 1y the ?ran%hisor for use in %onne%tion
with the System in the Territory so that the ?ran%hised Butlet will 1e dire%tly
re%o'niCa1le 1y the 'eneral &u1li% as an inte'ral &art of the System"
+"). ?ran%hisee shall 1e solely res&onsi1le 5or %ondu%tin' lo%al ad!ertisin' and
&romotion or the ?ran%hised Butlet and the ex&enses thereof" ?ran%hisee shall
dili'ently &romote and ma6e e!ery reasona1le effort to steadily in%rease
1usiness and re!enue or the ?ran%hised Butlet 1y &rinted ad!ertisements$
&romotions$ entries in tele&hone and trade dire%tories and in other suita1le
manner$ all or whi%h shall 1e in a%%ordan%e with the standards &res%ri1ed and
su1Ie%t to a&&ro!al of ?ran%hisor> shall follow all a&&li%a1le laws> shall dis&lay
or ma6e a!aila1le at the ?ran%hised Butlet su%h ad!ertisin'" romotional matter
or &ro!ided 1y ?ran%hisor as ?ran%hisor reasona1ly dire%ts"
+")) ?ran%hisee shall &arti%i&ate fully and without ex%e&tion in all mar6etin'
&ro'rams$ sales &romotions and ser!i%es or ?ran%hisor as ?ran%hisor may
determine to 1e ne%essary and desira1le for the ?ran%hise from time to time"
+")H ?ran%hisee shall &romote and ensure that the ?ran%hised Butlet &romotes
&atrona'e or other affiliated Restaurants 1y the &u1li% and should not en%oura'e
use of other non-affiliate Restaurants"
+")4 ?ran%hisee shall &ermit the ?ran%hisor or its authoriCed re&resentati!es to ins&e%t
the ?ran%hised Butlet from time to time at any reasona1le time durin' the term
of this A'reement $and shall &ermit and assist the ?ran%hisor to ma6e su%h other
in!esti'ations as it deems to 1e ne%essary to determine that the a%ti!ities of the
?ran%hisee and the ?ran%hised Butlet meet the minimum standards set forth in
the Rules and Re'ulations and the ?ran%hise B&erations Manual$ and with the
o1li'ations of this A'reement"
+")- ?ran%hisee shall a&&ly for all ne%essary 'o!ernment$ lo%al authority$ 1an6 or
other ne%essary %onsents in order to %ommen%e and %arry on the Business"
+")+ All stationery$ literature$ and do%uments used 1y the ?ran%hisee and the
?ran%hised Butlet for the &ur&oses or the Business shall %ontain a statement that
?ran%hisee and/or ?ran%hised Butlet o&erates as a ?ran%hisee under a" li%ense
from time to time from ?ran%hisor$ whi%h statement shall 1e &res%ri1ed 1y
?ran%hisor in writin' or shall 1e des%ri1ed in the Rules and Re'ulations or the
?ran%hise B&erations Manual" All stationary drafts to 1e a&&ro!ed 1y the
?ran%hisor in writin'" The fran%hisee also underta6es not to e!er si'n any
do%ument dire%tly under the fran%hised mar6/mar6s"
+"), ?ran%hisee shall %learly indi%ate$ in 1oth En'lish and in the offi%ial lan'ua'e5s9
of the Territory$ that any le'al a%tion %ommen%ed a'ainst the ?ran%hised Butlet$
?ran%hisor$ or any other &erson 5in%ludin'$ without limitation$ ?ran%hisee or its
Affiliates9 shall 1e filed and maintained only in the %ourts ha!in' Iurisdi%tion
o!er the Iurisdi%tion in whi%h the ?ran%hised Butlet is lo%ated"
+")/ ?ran%hisee s&e%ifi%ally a%6nowled'es that$ &ursuant to this A'reement$
?ran%hisee will" re%ei!e !alua1le information in%ludin'$ without limitation$
information re'ardin' the o&erational sales$ &romotional and mar6etin' methods
and te%hniDues of Atreme S&orts Bar and the System$ The ?ran%hisee %o!enants
that durin'G the term of this A'reement$ and ex%e&t as otherwise a&&ro!ed in
writin' 1y ?ran%hisor$ ?ran%hisee shall not$ either dire%tly of indire%tly$ for
itself$ or throu'h$ on 1ehalf of$ or in %onIun%tion =ith any &erson$ &artnershi&$
asso%iation or %or&oration$ di!ert or attem&t to di!ert any 1usiness or %ustomer
or the ?ran%hised Butlet to any %om&etitor$ 1y dire%t or indire%t indu%ement or
otherwise$ to do or &erform dire%tly or indire%tly$ any other a%t inIurious or
&reIudi%ial to the 'oodwill asso%iated with the ro&rietary Mar6s and the
System"
+")J The &arties a'ree that ea%h one the fore'oin' %o!enants shall 1e %onstrued as
inde&endent of any other %o!enant or &ro!ision of this A'reement" If all or any
&ro!ision of a %o!enant of this Se%tion is held unreasona1le or unenfor%ea1le 1y
a %ourt or tri1unal ha!in' !alid Iurisdi%tion in an un-a&&ealed final de%ision to
whi%h ?ran%hisor is a &arty$ ?ran%hisee ex&ressly a'rees to 1e 1ound 1y any
lesser %o!enant su1sumed within the terms of su%h %o!enant that im&oses the
maximum duty &ermitted 1y law$ as if the resultin' %o!enant were se&arately
staled in @and made a &art of this Se%tion"
+")* ?ran%hisee understands and a%6nowled'es that ?ran%hisor shall ha!e the ri'ht" in
its sole dis%retion to redu%e the s%o&e of any %o!enant set forth in Se%tions+"l
throu'h +")J" 1oth in%lusi!e$ without ?ran%hiseeFs %onsent$ effe%ti!e
immediately u&on re%ei&t 1y ?ran%hisee or written noti%e thereofG and
?ran%hisee a'rees that it shall %om&ly forthwith with any %o!enant so modified"
whi%h shall 1e fully enfor%ea1le notwithstandin' the &ro!isions of Se%tion HH")
8 HH"H hereof"
+"H. ?ran%hisee ex&ressly a'rees that the existen%e or any %laims it may ha!e a'ainst
?ran%hisor whether or not arisin' from this A'reement$ shall not %onstitute a
defense to the enfor%ement 1y ?ran%hisor of the %o!enants in Se%tions +")
throu'h +") +")J 1oth in%lusi!e" ?ran%hisee a'rees to &ay all %osts and ex&enses
5in%ludin' reasona1le attorneysF fees and ex&enses9 in%urred 1y ?ran%hisor in
%onne%tion with the enfor%ement or Se%tions +") throu'h +")J in%lusi!e"
+"H) ?ran%hisee a%6nowled'es that its !iolations .f the terms of Se%tions +") throu'h
+")J in%lusi!e$ would result ill irre&ara1le inIury to Atreme S&orts Bar or
?ran%hisor for whi%h no adeDuate remedy at law may 1e a!aila1le$ and
?ran%hisee a%%ordin'ly a'rees that$ notwithstandin' the &ro!isions of Se%tion
HH"H 1elow" ?ran%hisor may see6 the issuan%e or an inIun%tion or other similar
%ourt order &rohi1itin' any %ondu%t 1y ?ran%hisee in !iolation or the terms or
Se%tions +") throu'h +")J in%lusi!e of this A'reement"
+"HH ?ran%hisee shall 1ear salaries and other 1enefits and %onditions of ser!i%e and
re!ision thereof$ as may he a'reed 1etween ?ran%hisor and em&loyee and as &er
the ?ran%hisorFs Human Resour%es oli%y in%ludin' 1ut not limited to house
rent$ &ro!ident fund$ su&erannuation 1enefits$ uniforms$ %on!eyan%e$ any other
allowan%es and reim1ursa1le as may 1e defined as &oli%y 1y the ?ran%hisor from
time to time and reim1urse the %ost of Ioinin' and relie!in' of ea%h other staff
de&uted 1y the ?ran%hisor"
+"H4 ?ran%hisee shall not offer em&loyment or any other form of monetary
%om&ensation or &artnershi& to any em&loyee of the ?ran%hisor without written
&ermission from the ?ran%hisor and shall not utiliCe the ser!i%es of mana'erial
&ersonnel de&uted 1y the ?ran%hisor for any &ur&ose other than for the o&eration
of the Butlet"
+"H- ?ran%hisee a'rees to the ?ran%hisor of transferrin' any or all of its de&uted
&ersonnel at any time to other mem1er Restaurants of the System or its
headDuarters with a !iew to &ro!ide trainin' and /or %areer de!elo&ment$ to
fa%ilitate seamless mana'ement"
+"H+ ?ran%hisee understands and a%6nowled'es that ?ran%hisor shall ha!e the ri'ht$ in
its sole dis%retion$ to redu%e the s%o&e of any %o!enant set forth in Se%tions +")
throu'h +"H- in%lusi!e$ without ?ran%hisee@s %onsent$ effe%ti!e immediately u&on
re%ei&t 1y ?ran%hisee or written noti%e thereofG and ?ran%hisee a'rees that it
shall %om&ly forthwith with any %o!enant so modified$ whi%h shall 1e fully
enfor%ea1le notwithstandin' the &ro!isions of Se%tion HH") 8 HH"H thereof"
+"H, ?ran%hisee a'rees to ma6e a!aila1le$ on the re%ommendation or the ?ran%hisor
%on%essions in Butlet amenities to su%h &erson and others who would hel& to
&romote the Butlet"
+"H/ It is ex&ressly a'reed 1y and 1etween the &ani%s hereto that in the e!ent the
?ran%hisee is in 1rea%h of the o1li'ations set out at +")$ +"H$ +"4$ +"+$ +"/" +").$
+"HH$ +"H4 and +"H+ hereina1o!e then and in su%h e!ent the ?ran%hisee shall &ay
to the ?ran%hisor dama'es at the rate of Rs" )$.../- &er day durin' the
%ontinuan%e of su%h 1rea%h 5from the re%ei&t of written noti%e as &ro!ided
herein9 u& to su%h time the 1rea%h is %ured 1y the ?ran%hisee" In %ase or 1rea%h
or the o1li'ations set out at +"- 8 +"H- hereina1o!e then and in su%h e!ent the
?ran%hisee shall &ay to the ?ran%hisor dama'es at the rate or Rs"+$.../- &er day
durin' the %ontinuan%e or su%h 1rea%h 5from the re%ei&t of written noti%e as
&ro!ided herein9 u& to-su%h time of the 1rea%h is %ured 1y the ?ran%hisee"
+"HJ It is further ex&ressly a'reed 1etween the &arties hereto that in the e!ent the
?ran%hisee fails to %ure su%h 1rea%h as mentioned in +"H/ a1o!e within a &eriod
of 4. days from the re%ei&t of written noti%e 5from the ?ran%hisor9 to %ure su%h
1rea%h then and in su%h e!ent this a'reement shall automati%ally %ome to an end
at the end of the &eriod of 4. days as afore said and all %onseDuen%es on
termination as &ro!ided herein 1elow shall follow"
3. FEES AND !AMENTS
,") The ?ran%hisee shall in %onsideration of@ the fran%hise ri'hts and fran%hise and
other su&&ort ser!i%es 1ein' rendered in res&e%t of the ?ran%hised Butlet &ay to
the ?ran%hisor as follows>
,")") In addition to the fran%hise fee as set out in %lause ,")"H herein 1elow$
the fran%hisee shall &ay to the ?ran%hisor a onetime si'n u& fee of Rs"
)+$..$.../- 5Ru&ees ?ifteen #a6hs Bnly95Ex%lusi!e of Ser!i%e tax or
any other statutory le!y as may1e notified from time to time9 at the
time or exe%ution or this a'reement"
,")"H The ?ran%hisee shall &ay to the ?ran%hisor$ ?ran%hise fee at the rate of
).L 5Ten &er%ent9 of the monthly net re!enue" All &ayments are
Ex%lusi!e of Ser!i%e tax or any other statutory le!y as may1e notified
from time to time" The ?ran%hise fee to 1e &aid 1y the ?ran%hisee to
the ?ran%hisor in res&e%t of any month shall 1e &aid on or 1efore the
tenth day of the su%%eedin' month"
,")"4 The ?ran%hisee shall &ay to the ?ran%hisor the staff de&utation %har'es
with res&e%t to the Mana'erial staff de&uted 1y the ?ran%hisor to the
fran%hised outlet in%lusi!e of salaries$ ro!ident ?und$ ESI($ Tra!el
and Housin' allowan%e and Mo1ile hone Bills 1y the fifth of e!ery
su%%eedin' month"
,")"- The ?ran%hisee shall &ay to ?ran%hisor$ for any materials$ %ollaterals$
food and 1e!era'e su&&lies$ et% within se!en days of re%ei&t of the 1ill
raised 1y the ?ran%hisor to the fran%hisee"
Any delay in a1o!e &ayments$ shall attra%t a H-L &"a" %om&ounded interest"
,"H The ?ran%hisee shall reim1urse ?ran%hisor in res&e%t of all dire%t %osts in%urred
on tele&hone$ fax$ %ourier ser!i%es and for tra!el$ 1oardin' in%ludin' non-
al%oholi% 1e!era'es and lod'in'$ &ersonal laundry and in%identals at Rs" +../-
&er man-day for &ersonnel de&uted 1y the ?ran%hisor for onsite system
im&lementation$ o&erations ad!i%e and assistan%e and related su&&ort ser!i%es
Initial in%identals for set u& is non %har'ea1le and will 1e at the ex&ense of
?ran%hisor" All mana'ement staff shall tra!el 1y fli'ht 5e%onomy %lass9 with the
ex%e&tion of the ?ran%hisor@s (hief Exe%uti!e and B&eratin' Bffi%ers 5Business
(lass9 to the fran%hised outlet and they will 1e lod'ed at a reasona1le hotel
a%%ommodation at the fran%hisee@ %ost" All other Iunior staff &ro!ided 1y the
?ran%hisor will tra!el 1y Rail Se%ond (lass A/% Slee&er and will 1e &ro!ided
with reasona1le$ %lean a%%ommodation and Boardin' at the ?ran%hisee@s %ost"
4. FRANCHISED MAR5S
/") ?ran%hisor re&resents that re'istration or a&&li%ation has 1een made in the
Territory for re'istration of the ?ran%hised Mar6s" ?ran%hisee a%6nowled'es and
a'rees that ?ran%hisor may 1e una1le to o1tain re'istration of some or all of the
?ran%hised Mar6s for whi%h a&&li%ation has 1een made"
/"H ?ran%hisee a%6nowled'es ?ran%hisor@s sole ownershi& of the ro&rietary Mar6s
5re'istered or unre'istered9$ dis%laims any ri'ht or interest therein and to the
'oodwill atta%hed thereto$ a'rees not to re'ister or to attem&t to re'ister any of
the ro&rietary Mar6s" ?ran%hisee further a%6nowled'es that the &ro&erty in all
'oodwill of the 1usiness transa%ted under this A'reement and all ri'hts therein
1elon' to ?ran%hisor an7 that it has no ri'ht for any "%om&ensation whatsoe!er
%on%ernin' the 'oodwill of the 1usiness transa%ted under this A'reement"
?ran%hisee a'rees to assi'n and %on!ey to ?ran%hisor u&on reDuest$ in any su%h
form as ?ran%hisor may &res%ri1e$ any ri'hts in the ro&rietary Mar6s as
?ran%hisee may a%Duire"
/"4 ?ran%hisee shall assist ?ran%hisor$ at ?ran%hisor@s reDuest and sole %ost and
ex&ense$ in o1tainin' re'istration of any ro&rietary Mar6s ?ran%hisor has or
mi'ht a%Duire in the Territory$ and a'rees that any ri'hts$ &ri!ile'es and 1enefits$
le'al or otherwise" In%ludin' 'oodwill$ resultin' from the use of the ro&rietary
Mar6s 1y ?ran%hisee shall inure only to the ?ran%hisor"
/"- ?ran%hisee a'rees that its name shall not %ontain any of the ro&rietary Mar6s
and that it shall not use any of the ro&rietary Mar6s in the name of any
%or&oration$ Ioint !enture$ &artnershi&$ limited &artnershi& or any other ty&e of
1usiness or'aniCation whi%h owns any interest in$ or o&erates$ the ?ran%hised
Butlet"
/"+ ?ran%hisee shall not at any time$ durin' the term of this A'reement or thereafter
Duestion$ deny$ %ontest or dis&ute the !alidity of the ro&rietary Mar6s or
?ran%hisor@s ex%lusi!e ri'ht$ title$ or interest in and to the ro&rietary Mar6s"
?ran%hisee shall &rom&tly refer to ?ran%hisor any threat or %hallen'e to the
!alidity of$ or ?ran%hisor@s ex%lusi!e ri'hts in$ the ro&rietary Mar6s"
/", ?ran%hisee shall$ at ?ran%hisors reDuest and ex&ense$ enter into su%h a'reement$
with ?ran%hisor$ for filin' with the rele!ant trademar6 authorities$ as ?ran%hisor
shall reDuireG &ro!ided$ howe!er$ that su%h a'reement shall in%lude no terms or
o1li'ations other than those im&osed u&on ?ran%hisee under this A'reement$
ex%e&t where ne%essary for su%h a'reement to 1e !alid and enfor%ea1le"
/"/ =ith res&e%t to ?ran%hisee@s use of the ?ran%hised Mar6s &ursuant to this
A'reement" ?ran%hisee a'rees that>
/"/") ?ran%hisee shall use only the ?ran%hised Mar6s authorised 1y
?ran%hisor in this A'reement$ or otherwise in writin'$ and shall use
them only in the manner authoriCed and &ermitted 1y ?ran%hisorG
/"/"H ?ran%hisee shall use the ?ran%hised Mar6s only for the o&eration of
the BusinessG
/"/"4 ?ran%hisees@ ri'ht to use the ?ran%hised Mar6s is limited to su%h uses
as are authoriCed under this A'reement and any unauthoriCed use
thereof shall %onstitute an infrin'ement of ?ran%hisor@s ri'htsG and
/"/"- ?ran%hisee shall &rote%t and &romote the 'oodwill atta%hed to the
?ran%hised Mar6s"
/"J ?ran%hisee shall in%lude on all si'ns$ stationery and &romotional or ad!ertisin'
material$ and all other su%h material used in %onne%tion with the Business$ the
ex&ression 7TM7 in %onIun%tion with the ?ran%hised Mar6s$ and shall" In%lude
%learly and in a &rominent &osition on su%h material an a&&ro&riate noti%e
re'ardin' ownershi& of the ?ran%hised Mar6s as ?ran%hisor %onsiders
a&&ro&riate and dire%ts" =here dire%ted 1y ?ran%hisor$ the sym1ol M or other
a&&ro&riate sym1ol shall 1e em&loyed to desi'nate a re'istered mar6"
/"* ?ran%hisee shall &rom&tly notify the ?ran%hisor of any unli%ensed use of the
&ro&rietary Mar6s$ any %hallen'e to the !alidity of the ro&rietary Mar6s$ or any
%hallen'e to ?ran%hisor@s ownershi& of$ or ?ran%hisee@s ri'ht to use$ the
ro&rietary Mar6s" ?ran%hisee a%6nowled'es that ?ran%hisor has the sole ri'ht
to determine$ dire%t$ and %ontrol any ne'otiation$ administrati!e &ro%eedin'$ or
liti'ation in!ol!in' the ro&rietary Mar6s$ in%ludin' any settlement thereof"
?ran%hisor has the ri'ht$ 1ut not the o1li'ation$ to ta6e a%tion a'ainst uses 1y
others that may %onstitute infrin'ement of the ro&rietary Mar6s"
ro!ided ?ran%hisee has used the ?ran%hised Mar6s in a%%ordan%e with this
A'reement$ the Rules and Re'ulations" and the ?ran%hise B&erations Manual"
and further &ro!ided ?ran%hisee has notified ?ran%hisor in writin' or any third
&arty %laim" suit$ or demand in!ol!in' the ?ran%hised Mar6s" and defense of
?ran%hisee a'ainst any third &art9$ %laim suit$ or demand in!ol!in' the
?ran%hised Mar6s arisin' out of ?ran%hisee@s use thereof shall not 1e at
?ran%hisee@s ex&ense$ Btherwise$ any defense of ?ran%hisee a'ainst su%h third
&arty %laims$ suits$ or demands shall 1e at ?ran%hisee@s ex&enses"
In the e!ent the defense or &rose%ution of any liti'ation relatin' to the
?ran%hised Mar6s is underta6en hereunder$ ?ran%hisee a'rees to exe%ute any and
all do%uments and to do su%h a%ts and thin's as may$ in the o&inion of %ounsel
for ?ran%hisor$ 1e ne%essary to %arry out su%h defense or &rose%ution$ in%ludin'$
1ut not limited to$ 1e%omin' a nominal &arty to any le'al a%tion" Ex%e&t to the
extent that su%h liti'ation the result of ?ran%hisee@s use of the ?ran%hised Mar6s
in a manner in%onsistent with the terms of this A'reement$ the Rules and
Re'ulations$ the ?ran%hise B&erations Manual$ and su%h other noti%es as
?ran%hisor or ?ran%hisor may 'i!e$ ?ran%hisor a'rees to reim1urse ?ran%hisee
for its out-of-&o%6et %osts in doin' su%h a%ts and thin's$ ex%e&t that ?ran%hisee
shall 1ear the salary %osts of its em&loyeesG and ?ran%hisor shall &ay the %osts of
any Iud'ment or settlement"
/"). ?ran%hisor reser!es the ri'ht to reDuire ?ran%hisee to su1stitute different
?ran%hised Mar6s for use in identifyin' the System and the Business o&eratin'
hereunder$ if ?ran%hisor$ in its sole dis%retion$ determines that su1stitution of
different ?ran%hised Mar6s would 1e 1enefi%ial$ ?ran%hisee a'rees to %om&ly
with all su%h %han'es at its sole %ost and ex&ense"
/")) ?ran%hisee a%6nowled'es and a'rees that ?ran%hisor ex&ressly has reser!ed to
itself all %o&yri'hts in the ?ran%hise B&erations Manual$ the Rules and
Re'ulations$ 1oth in the %urrent !ersions of ea%h and in any re!isions thereto"
/")H ?ran%hisee a'rees that its 1usiness name and the name of any of its affiliates$
re'ardless of the form of 1usiness or'aniCation 5%or&oration$ &artnershi&$ Ioint
!enture$ et%"9 shall not %ontain any ro&rietary Mar6 or anythin' %onfusin'ly
similar thereto"
6. FRANCHISE O!ERATIONS MAN7A"8 R7"ES AND REG7"ATIONS
J") In order to &rote%t the re&utation and 'oodwill of ?ran%hisor and to maintain
uniform standards of o&eration under the System and under the ?ran%hised
Mar6s$ ?ran%hisee shall %ondu%t the Business in a%%ordan%e with the ?ran%hise
B&erations Manual$ the Rules and Re'ulations$ Standard B&eratin' ro%edures
and Human Resour%e oli%ies"
J"H ?ran%hisor may from time to time &ro!ide to ?ran%hisee re!isions to the %ontents
of the ?ran%hise B&erations Manual and the Rules and Re'ulations$ and
?ran%hisee shall in%or&orate su%h re!isions into ?ran%hisee@s ?ran%hise
B&erations Manual" ?ran%hisee shall %om&ly with ea%h new or %han'ed standard
in the ?ran%hise B&erations Manual and the Rules and Re'ulations and stri%tly
adhere to the same"
9. CONFIDENTIA"IT
*") ?ran%hisee a%6nowled'es that ?ran%hisor@s System is uniDue and %onfidential
and that ?ran%hisor has !alua1le 'oodwill whi%h has 1een de!elo&ed and whi%h
?ran%hisor intends to maintain and extend" Ex%e&t as otherwise authoriCed
herein ?ran%hisee a%%ordin'ly a'rees that it shall not$ without ?ran%hisor@s &rior
written %onsent$ dis%lose or otherwise ma6e a!aila1le to any third &arty$ the
fran%hise B&erations Manual$ the Rules and Re'ulations$ or any other
information it re%ei!ed in %onfiden%e from the ?ran%hisor and will ta6e all
reasona1le &re%autions to &re!ent third &arties from 'ainin' a%%ess to su%h
information"
*"H ?ran%hisee also shall reDuire$ at ?ran%hisorFs reDuest$ that any em&loyee$
shareholder$ dire%tor$ offi%er$ of &artner exe%ute %o!enants in En'lish that they
will maintain the %onfidentiality of information or 6nowled'e they re%ei!e in
%onne%tion with the Business" Su%h %o!enants shall he in a form satisfa%tory to
?ran%hisor in%ludin'$ without limitation s&e%ifi% identifi%ation or ?ran%hisor as
&ani%s to su%h %o!enants with the inde&endent ri'ht to enfor%e them"
$:. RE!ORTS AND ACCO7NTS
).") ?ran%hisee shall send daily re&orts on %o!ers and %he%6 51ill9 %olle%tions$ and
in%ome to the ?ran%hisor" ?ran%hisee shall within + days after the %lose of ea%h
%alendar month$ furnish to the ?ran%hisor$ in su%h form as may 1e &res%ri1ed 1y
?ran%hisor$ duly %ertified re&orts and statements in%ludin' 1ut not limited to>
- monthly %ertifi%ate of fee &aya1le>
- monthly %o!er and %he%6s re&ort>
- monthly &rofit and loss statement
- monthly o&erations and statisti%s re&ort
- monthly 1usiness sour%e re&ort
- Monthly %ustomer feed1a%6 forms
- Monthly &ur%hase statement
- Monthly o&enin' and %losin' sto%6
- monthly 1an6 statements$
- 3aily Sales Re&ort
- 3aily Noid Bills Re&orts
- 3aily (an%elled and Noid OBT@ Re&orts
- 3aily 3is%ount Re&orts
- 3aily Non (har'ea1le Bills Re&orts
- 3aily Non A!aila1ility Re&ort
- 3aily In%ident Re&orts
- 3aily Ta1le transfer and %an%elled orders Re&ort
- 3aily software (ollates 5Nia Email9
)."H ?ran%hisee shall 6ee& at the ?ran%hised Butlet %om&lete and a%%urate 1oo6s$
re%ords$ and a%%ounts in res&e%t of the Business in a%%ordan%e with 'enerally
a%%e&ted a%%ountin'G &rin%i&les in the Territory and shall>
)."H") ha!e su%h 1oo6s$ re%ords$ and a%%ounts audited on%e ea%h year
throu'hout the term of this A'reement 1y an inde&endent %hartered
a%%ountant a&&ro!ed 1y the ?ran%hisor in a%%ordan%e with 'enerally
a%%e&ted &rin%i&les in the Territory and su1mit su%h audited finan%ial
statements to ?ran%hisor within six 5,9 months of the end of
?ran%hisee@ fis%al yearG
)."H"H reser!e su%h 1oo6s$ re%ords$ and a%%ounts$ for not less than three
years> and &ermit ?ran%hisor to ins&e%t and ma6e %o&ies of any
finan%ial information$ 1oo6s$ a%%ounts$ or re%ords maintained 1y
?ran%hisee as ?ran%hisor reasona1ly reDuires 5on reasona1le &rior
noti%e only in the e!ent of ins&e%tion after normal 1usiness hours9"
)."H"4 Ban6 all re%ei&ts (ash/ (ard et% in a desi'nated 1an6 a%%ount"
)."H"- ay all 'o!ernment 3ues su%h as sales tax$ ?$ ESI($ Ad!an%e Tax$
Ser!i%e Tax in a timely manner"
)."4 In the e!ent that all audit or su%h hoo6s$ re%ords$ or a%%ounts shows ?ran%hisee
to ha!e under&aid any fees due to ?ran%hisor hereunder$ ?ran%hisee a'rees to
&ay &rom&tly to ?ran%hisor su%h sums as ha!e 1een under&aid &lus interest at
Twenty ?our &er%ent 5H-L9 &er annum$ from the rele!ant ayment 3ates until
the time the &ayment is made of the outstandin' sums and any a%%rued interest"
$$. INS7RANCE
))") ?ran%hisee a'rees to &ro%ure und maintain in full for%e and effe%t durin' the
entire term of this A'reement$ at its sole %ost and ex&ense$ su%h insuran%e
reDuirements set forth in its lease/%ondu%tin' a'reement for the Butlet &remises
&rote%tin' ?ran%hisee and the ?ran%hised Butlet with the ?ran%hisee as the
named insured and ?ran%hisor$ ?ran%hisorFs affiliates$ a'ent@s ser!ants$
em&loyees" offi%ers$ and dire%tors as additional insured" and to furnish
?ran%hisor with e!iden%e of %om&lian%e no less freDuently than on%e ea%h year"
The fore'oin' insuran%e in this (lause and in (lause ))"H shall 1e &la%ed with
an insuran%e %om&any or %om&anies reasona1ly satisfa%tory to ?ran%hisor"
))"H ?ran%hisee a'rees to &ro%ure and maintain in full for%e and effe%t durin' the
entire term of this A'reement at the ?ran%hisee@s sole %ost and ex&ense$ a
%om&rehensi!e 'eneral lia1ility@ &oli%y a'ainst all 6nown ris6s normally %o!ered
1y an em&loyer %arryin' on a Restaurant 1usiness in the Territory$ in%ludin'
5without limitation9 adeDuate em&loyer@s lia1ility and third &arty a%%ident %o!er"
))"4 ?ran%hisee a'rees that ?ran%hisor may from time to time durin' the term of this
A'reement reDuire that the adeDuate limits of insuran%e %o!era'e as aforesaid 1e
reasona1ly in%reased in any area for su%h reasona1le amounts determined 1y
?ran%hisor and the area or ty&e of insuran%e %o!er may also 1e reasona1ly
extended 1y ?ran%hisor"
))"- Bri'inal or du&li%ate %o&ies of all insuran%e &oli%ies or of any %ertifi%ate of su%h
insuran%e shall 1e furnished &rom&tly to ?ran%hisor$ and ?ran%hisor shall 1e
&ro!ided 1y ?ran%hisee with &roof of &ayment of all &remiums thereof" E!iden%e
of renewal shall 1e made to ?ran%hisor &rior to the ex&iration date of su%h
&oli%y" ?ran%hisee shall &ro%ure that the insurers a'ree to notify@ ?ran%hisor of
any failure 1y ?ran%hisee to &ay any &remium due to res&e%t of su%h &oli%y
within the &eriod &ermitted 1y the insurer"
))"+ In the e!ent ?ran%hisee should fail to &ro%ure or maintain insuran%e of the ty&e
and for the amount s&e%ified in this A'reement$ or as may hereinafter 1e
%han'ed 1y ?ran%hisor$ ?ran%hisor may at their o&tion without noti%e$ in
addition to su%h other ri'hts and remedies whi%h they may ha!e$ &ro%ure and
maintain su%h insuran%e and %har'e the full &remiums thereof to the ?ran%hisee
or they may immediately terminate this A'reement"
))", The &ro%urin' and maintenan%e of su%h insuran%e and the &erforman%e 1y
?ran%hisee of ?ran%hisee@s o1li'ations under this (lause shall not relie!e
?ran%hisee of any lia1ility$ im&osed 1y or under the indemnity &ro!isions set
forth in (lause ),") of this A'reement"
))"/ !ara*ount# In the e!ent of any %laim in res&e%t of this Butlet 1ein' made on
?ran%hisor 1y anyone$ whi%h %laim does not %ome within the &oli%y effe%ted 1y
the ?ran%hisee then the ?ran%hisee shall defend su%h %laim at his own %ost and
ex&enses and in the e!ent any award is made a'ainst the ?ran%hisor$ su%h award
will 1e met 1y and shall 1e to the a%%ount of the ?ran%hisee"
))"J All %laims whether lod'ed 1y the ?ran%hisor or ?ran%hisee under any insuran%e
&oli%y ta6en in terms of this A'reement$ will$ at the first instan%e 1e re%ei!ed 1y
the ?ran%hisee and any lia1ility/loss %o!ered 1y su%h %laims whi%h ha!e 1een
1orne/met 1y ?ran%hisor shall forthwith 1e reim1ursed to ?ran%hisor as the %ase
may 1e"
))"* Notwithstandin' anythin' %ontained hereina1o!e$ it is here1y a'reed 1y and
1etween the arties hereto that it is the ?ran%hisee@s o1li'ation to &ro%ure and
maintain the insuran%e &oli%ies 5reDuired as aforesaid9"
$.. AD;ERTISING AND MAR5ETING
)H") ?ran%hisee a'rees to adhere to all a&&li%a1le statutory re'ulations and to
?ran%hisorFs reDuirements in res&e%t of ad!ertisin' and &romotion of the
?ran%hised Butlet" All ad!ertisements and other material &ro&osed to 1e
&u1lished$ %ir%ulated$ or exhi1ited 1y ?ran%hisee shall 1e su1mitted to
?ran%hisor at least fourteen 5)-9 days &rior to the first use of su%h material for
the written a&&ro!al of the ?ran%hisor" ?ran%hisor has the ri'ht to disa&&ro!e the
use of any su%h material" No material whi%h has 1een disa&&ro!ed 1y the
?ran%hisor shall 1e used 1y the fran%hisee" The fran%hisee shall in%lude any
statement or information in su%h ad!ertisin' or other &romotional materials as
the ?ran%hisor may dire%t" The fran%hisee is ex&e%ted to retain a &rofessional
&u1li% relations %om&any a&&ro!ed 1y the ?ran%hisor" All &ress releases or
statements made with re'ard to the fran%hised outlet need a written a&&ro!al 1y
the ?ran%hisor"
)H"H ?ran%hisee shall also dis&lay or ma6e a!aila1le su%h ad!ertisin'$ &romotional
matters$ or other information &ro!ided or &re&ared 1y ?ran%hisor in the form and
manner that ?ran%hisor reasona1ly dire%ts 5su%h material relatin' to ?ran%hisor
and/or the System9" If ?ran%hisor reDuests"
$/. ASSIGNMENT
)4") ?ran%hisee understands and a%6nowled'es that the ri'hts and o1li'ations set
forth in this A'reement are limited to ?ran%hisee and that ?ran%hisor has 'ranted
this Business in relian%e on ?ran%hisee@s 1usiness s6ill and finan%ial %a&a%ity"
A%%ordin'ly$ neither ?ran%hisee nor any immediate or remote su%%essor to any
&art of ?ran%hisee@s interest in the ri'hts 'ranted hereunder$ nor any &erson
5whi%h$ for &ur&oses of this Se%tion )4$ shall in%lude any indi!idual$ &artnershi&$
asso%iation$ %or&oration$ or other form of le'al entity9 whi%h dire%tly owns any
interest in ?ran%hisee shall sell$ assi'n$ transfer$ %on!ey$ &led'e$ mort'a'e or
otherwise en%um1er$ without ?ran%hisor@s &rior written %onsent$ this A'reement$
or any ri'hts or o1li'ations hereunder any dire%t interest in ?ran%hisee or in
su1stantially all of the assets of ?ran%hisee" Any attem&ted or &ur&orted
assi'nment or transfer 1y o&eration of law or otherwise$ not ha!in' the &rior
written %onsent or ?ran%hisor reDuired 1y this Se%tion )4" shall %onstitute a
material 1rea%h or this A'reement$ for whi%h ?ran%hisor may then terminate
without o&&ortunity to %ure &ursuant to Se%tion )- of this A'reement"
)4"H ?ran%hisor shall not unreasona1ly withhold its %onsent to any transfer reDuirin'
?ran%hisorFs &rior written %onsent &ursuant to Se%tion )4") hereofG &ro!ided$
howe!er that ?ran%hisor shall ha!e the ri'ht to withhold its %onsent$ in its sole
dis%retion to a transfer of this A'reement$ any transfer of any- of ?ran%hisee@s
ri'hts or o1li'ations hereunder$ or any transfer of any ownershi& interest in
?ran%hisee to any &erson en'a'ed in fran%hisin' or Restaurants anywhere in the
world" ?urthermore$ if a transfer$ alone or to'ether with other &re!ious$
simultaneous or &ro&osed transfers$ would ha!e the effe%t of transferrin' this
A'reement$ or any or ?ran%hiseeFs ri'hts or o1li'ations hereunder$ or %han'in'
%ontrol or ?ran%hisee or of transferrin' all or a su1stantial &ortion or the assets of
?ran%hisee$ ?ran%hisor may$ in its sole dis%retion$ reDuire satisfa%tory
%om&lian%e with any or all of the followin' %onditions>
)4"H") All of ?ran%hiseeFs a%%rued monetary o1li'ations and all other
outstandin' o1li'ations to ?ran%hisor$ its su1sidiaries and its affiliates
shall ha!e 1een satisfied"
)4"H"H ?ran%hisee shall not 1e in default under any &ro!ision or this
A'reement$ any amendment hereof any other a'reement 1etween
?ran%hisee and ?ran%hisor or their su1sidiaries and of any lease or
su1lease for the &remises at whi%h the ?ran%hisee Butlet is lo%ated"
)4"H"4 The transferor shall ha!e exe%uted a 'eneral release$ in a form
satisfa%tory to ?ran%hisor$ of any and all %laims a'ainst ?ran%hisor and
their su1sidiaries and affiliates and their offi%ers$ dire%tors$
shareholders$ and em&loyees$ in their %or&orate and indi!idual
%a&a%ities$ in%ludin'$ without limitation$ %laims arisin' under national
and lo%al laws$ rules$ and ordinan%esG
)4"H"- The transferee 5if the transferee is other than an indi!idual$ su%h
owners of a 1enefi%ial interest in the transferee as ?ran%hisor may
reDuest9 shall enter into a written assi'nment$ in a form satisfa%tory to
?ran%hisor$ assumin' and a'reein' to dis%har'e all of ?ran%hisee@s
o1li'ations under this A'reementG and the transferee$ at ?ran%hisor@s
o&tion$ shall 'uarantee the &erforman%e or all su%h o1li'ations in
writin' in a form satisfa%tory to ?ran%hisor"
)4"H"+ The transferee$ and su%h owners of a 1enefi%ial interest in the
transferee as ?ran%hisor may reDuest$ shall demonstrate to ?ran%hisor@s
satisfa%tion that the transferee meets ?ran%hisorFs then-%urrent
standards for new fran%hisees in the System$ in%ludin'$ without
limitation$ ?ran%hisor@s standards %on%ernin' related 1usiness
ex&erien%e$ add finan%ial %onditionG
)4"H", At ?ran%hisor@s o&tion$ the transferee shall exe%ute 5and/or u&on
?ran%hisor@s reDuest$ shall %ause all interested &arties to exe%ute9$ for
the same term as the term des%ri1ed in Se%tion 4 of this A'reement$
the then-%urrent form of ?ran%hise A'reement utiliCed 1y ?ran%hisor
in the Territory$ whi%h su%h a'reement shall otherwise su&ersede this
A'reement in all res&e%ts and whi%h a'reement shall 1e %onformed for
use in "the Territory %onsistent with the laws and %ustoms thereof$ and
the terms of whi%h a'reement may differ from the terms of this
A'reement in%ludin'$ without limitation$ in%reased fran%hise ser!i%es
fees$ and in%reased minimum &romotion and ad!ertisin' %ontri1utions
and ex&endituresG
)4"H"/ The transferee shall$ in a manner satisfa%tory to ?ran%hisor$ refur1ish
the ?ran%hised Butlet at its ex&ense to &resent the ima'e then in effe%t
for new or the most re%ently remodeled Restaurants under the System$
in%ludin' without limitation$ su%h stru%tural %han'es$ remodelin'$ and
rede%oration$ and su%h modifi%ations to existin' im&ro!ements as may
1e ne%essaryG
)4"H"J ?ran%hisee shall remain lia1le for all of the o1li'ations to ?ran%hisor
and its affiliates in %onne%tion with the ?ran%hised Butlet arisin' &rior
to the effe%ti!e date of the transfer and shall exe%ute any and all
instruments reasona1ly reDuested 1y ?ran%hisor to e!iden%e su%h
lia1ilityG and
)4"H"* ?ran%hisee shall &ay$ at the time a reDuest for a&&ro!al of a transfer is
made$ a non-refunda1le transfer fee in the amount ne%essary to
reim1urse ?ran%hisor for its reasona1le %osts and ex&enses asso%iated
with re!iewin' the a&&li%ation to transfer$ whi%h transfer tee shall not
ex%eed the amount then 1ein' %har'ed to other fran%hisees as an initial
fran%hise fee"
)4"4 The ?ran%hise and other ri'hts and duties herein are &ersonal to the ?ran%hisee
any may not in any manner he sold$ assi'ned$ leased$ su1-let$ &led'ed$
transferred$ or &arted with &ossession" Any su%%essor-in-interest shall 1e
reDuired to exe%ute a new ?ran%hise A'reement$ and to &ay a new Initial ?ee$ in
order to %ontinue the ?ran%hised Butlet in the System"
)4"- ?ran%hisor shall ha!e the ri'ht to transfer all or any &art of its ri'hts or
o1li'ations under this A'reement to any &erson or le'al entity"
$0. TERMINATION
)-") I**ediate Ter*ination <ithout O''ortunit( to Cure P ?ran%hisor may
terminate this A'reement and all ri'hts 'ranted herein without &rior noti%e to
?ran%hisee on o%%urren%e of any of the followin' e!ents"
)-")") If ?ran%hisee shall 1e%ome insol!ent or ma6e a 'eneral assi'nment for
the 1enefit of %reditorsG or if a &etition in 1an6ru&t%y is tiled 1y
?ran%hisee or su%h a &etition is filed a'ainst ?ran%hisee and not
o&&osed 1y ?ran%hiseeG or if a re%ei!er or other %ustodian 5&ermanent
of tem&orary9 of ?ran%hisee@s assets or &ro&erty$ or any &art thereof$ is
a&&ointed 1y any %ourt of %om&etent Iurisdi%tion$ or if any suit to
fore%lose any lien or mort'a'e a'ainst the ?ran%hisee@s &ro&erty is
instituted$ and not dismissed or %ontested 1y liti'ation within thirty
54.9 daysG or if ?ran%hisee is dissol!edG or if exe%ution is le!ied
a'ainst all or su1stantially all of ?ran%hisee@s 1usiness or &ro&ertyG or
if the real or &ersonal &ro&erty of ?ran%hisee shall 1e sold after le!y
thereu&on 1y any offi%er a%tin' on 1ehalf of any %ourtG
)-")"H If for any reason whatsoe!er the ?ran%hised Butlet %eases to exist or is
sold/transferred 1y the ?ran%hisee to-a third &arty or in the e!ent of
the fran%hisee 1ein' a lessee/li%ensee of the fran%hised Butlet the
lease/li%ense A'reement with the Bwner 1ein' terminated then this
A'reement shall stand terminated forthwith>
)-"H Ter*ination =( Franchisor A,ter O''ortunit( to Cure > ?ran%hisee shall 1e
deemed to 1e in default and ?ran%hisor may$ at its o&tion$ terminate this
A'reement and all ri'hts 'ranted hereunder$ without further noti%e to ?ran%hisee$
effe%ti!e immediately u&on re%ei&t of noti%e 1y ?ran%hisee$ u&on any 1rea%h of
any of ?ran%hisee@s o1li'ations hereunder$ in%ludin'$ 1ut not limited to$ any of
the followin' e!ents>
)-"H") If$ within fifteen 5)+9 days after noti%e is 'i!en to it 1y ?ran%hisor
reDuirin' remedy$ ?ran%hisee tails to &ay when due &ayments
reDuirement under this A'reement ?ran%hisee shall not ha!e remedied
or %ause to 1e remedied su%h 1rea%hG
)-"H"H If$ within fifteen 5)+9 days after noti%e is 'i!en to it 1y ?ran%hisor
reDuirin' remedy$ ?ran%hisee fails to maintain or o1ser!e any of the
standards or &ro%edures reDuired for o&eration of the ?ran%hised
Butlet 1y ?ran%hisor ill this A'reement$ in the ?ran%hise B&erations
Manual$ the Rules and Re'ulations or otherwise in writin'$ and
?ran%hisee shall not ha!e remedied or %ause to 1e remedied su%h
1rea%hG
)-"H"4 If$ within fifteen 5)+9 days after noti%e is 'i!en to it 1y ?ran%hisor
reDuirin' remedy$ ?ran%hisee fails to timely su1mit any information
reDuired under this A'reement ?ran%hisee shall not ha!e remedied or
%ause to 1e remedied su%h 1rea%h$ or
)-"H"- If$ within fifteen 5)+9 days after noti%e is 'i!en to it 1y ?ran%hisor
reDuirin' remedy$ ?ran%hisee 1rea%hes any other %o!enant &romise$
o1li'ation$ or underta6in' herein %ontained$ if su%h 1rea%h shall 1e of
a remedia1le nature and ?ran%hisee shall not ha!e remedied or %ause
to 1e remedied su%h 1rea%h"
)-"4 Ter*ination =( Franchisor A,ter O''ortunit( to ,urnish e-idence > The
?ran%hisor shall 1e entitled to terminate this A'reement 1y 'i!in' a 4. day
written noti%e to the ?ran%hisee in the e!ent that any of the e!ents listed in
)-"4") to )-"4"* o%%ur" The ?ran%hisee shall 1e entitled to utiliCe the thirty day
&eriod mentioned hereina1o!e to &ro!ide suffi%ient e!iden%e to the ?ran%hiseG
with a !iew to satisfy the ?ran%hisor that the 1rea%hes 5mentioned in )-"4") to
)-"4"* 1elow9 %om&lained of ha!e not 1een %aused as a %onseDuen%e of any
default or ne'li'en%e of the ?ran%hisee" The de%ision of the ?ran%hisor as to
whether the 1rea%hes$ %om&lained of are a %onseDuen%e of any default or
ne'li'en%e of the fran%hisee shall 1e final"
)-"4") If$ %ontrary to the terms of Se%tion )4 hereof$ ?ran%hisee or any
shareholder in ?ran%hisee &ur&orts to ma6e any transfer to any third
&arty without ?ran%hisor@s &rior written %onsentG
)-"4"H If$ %ontrary to the terms of Se%tion * hereofG ?ran%hisee dis%loses or
di!ul'es any %onfidential information &ro!ided to ?ran%hisee 1y
?ran%hisor>
)-"4"4 If ?ran%hisee misuses or ma6es any unauthoriCed use of the
ro&rietary Mar6s or otherwise materially im&airs the 'oodwill
asso%iated therewith or ?ran%hisor@s ri'hts thereinG
)-"4"- If ?ran%hisee su1mits false or misleadin' information reDuired under
this A'reement>
)-"4"+ If ?ran%hisee fails to %om&ly with the insuran%e reDuirements set forth
in Se%tion )) hereofG
)-"4", If any other a'reement 1etween ?ran%hisee and ?ran%hisor$ or an
Affiliate of the ?ran%hisor is terminated for 1rea%h 1y ?ran%hisee"
)-"4"/ If a threat or dan'er to &u1li% health or safety results from the
%onstru%tion$ reno!ation$ maintenan%e" or o&eration of the ?ran%hised
ButletG
)-"4"J If ?ran%hisee !iolates the %o!enants a'ainst %om&etition %ontained in
Se%tion +")/ hereof> or
)-"4"* If the 1enefi%ial ownershi& of any interest 5whi%h for &ur&oses hereof
shall in%lude$ 1ut not 1e limited to$ sto%6$ 1onds$ de1entures$
&artnershi& interest" or the li6e9 in ?ran%hisee 1e%omes$ dire%tly or
indire%tly$ owned 1y a %om&any other than ?ran%hisor or without
?ran%hisor@s &rior written %onsent"
)-"4"). If for any other than finan%ial &erforman%e reason the ?ran%hisee
wishes to terminate this A'reement it may do so 1y 'i!in' the
?ran%hisor a &eriod of six months to remedy any 'rie!an%e or
misunderstandin'$ and on the &ayment of all outstandin' dues"
Alternati!ely if the ?ran%hisee wishes to terminate the A'reement
without offerin' any time to the ?ran%hisor to remedy any 'rie!an%e
or misunderstandin'$ it may do so 1y &ayin' a fee eDui!alent to the
amounts earned 1y the ?ran%hisor durin' the &re%edin' six months
from the date of the &ro&osed termination"
$2. RIGHTS AND OB"IGATIONS 7!ON TERMINATION OR
E?!IRATION
)+") K&on the termination or ex&iration of this A'reement howsoe!er o%%asioned all
of ?ran%hisee@s ri'hts and &ri!ile'es hereunder shall %ease immediately and
fran%hisee shall immediately>
)+")") (ease to o&erate the ?ran%hised Butlet under the System and the
?ran%hised Mar6sG
)+")"H (ease to use any of the ?ran%hised Mar6s or any as&e%t of the System
and %ease to use in any manner whatsoe!er any terms$ manuals$ slo'an
si'ns$ mar6s or sym1ols %ontainin' the ?ran%hised Mar6s$ &rodu%ts
made a!aila1le under the fran%hise system$ food and 1e!era'es and
anythin' similar thereto or su''esti!e thereof used in %onne%tion with
the ?ran%hised ButletG
)+")"4 (ease to %laim or re&resent orally or in writin' that it is or that the
?ran%hised Butlet is a ?ran%hisee or a fran%hised Butlet of ?ran%hisorG
)+")"- Remo!e or alter all rele!ant si'ns used in %onne%tion with the
?ran%hised Butlet so as to distin'uish it from the ?ran%hisor and
?ran%hisorG
)+")"+ ay without offset all sums owin' to ?ran%hisor and their AffiliatesG
)+")", Not allow any third &arty to use or a&&ly the SystemG
)+")"/ 3eli!er u& to ?ran%hisor all manuals 5in%ludin'$ without limitation"
the ?ran%hise B&erations Manual9$ the Rules and Re'ulations$ the
standard re%i&es$ system software$ and all &ro'rams and %onfidential
information in its &ossession or %ontrol and not 6ee& any %o&ies
thereof@G and
)+")"J 3o e!erythin' ne%essary to terminate the a'reement$ if any$ exe%uted
&ursuant to Se%tion /"/ hereto$ and ta6e su%h a%tion as may 1e
ne%essary to %an%el any assumed name or eDui!alent re'istration
whi%h %ontains any ?ran%hised Mar6" ?ran%hisee shall furnish
?ran%hisor with e!iden%e satisfa%tory to ?ran%hisor of %om&lian%e wit
this o1li'ation within se!en 5/9 days after termination of ex&iration of
this A'reement"
)+"H In the e!ent ?ran%hisee %ontinues to o&erate or su1seDuently 1e'ins to o&erate
any other 1usiness followin' termination or ex&iration of this A'reement$
?ran%hisee shall not use any re&rodu%tion$ %ounterfeit$ %o&y$ .)@ %olora1le
imitation of the ?ran%hised Mar6s or any of the ro&rietary Mar6s" either in
%onne%tion with su%h other 1usiness or the &romotion thereof whi%h is li6ely ).
%ause %onfusion$ mista6e or de%e&tion or whi%h is li6ely to dilute ?ran%hisor@s
ri'hts in and to su%h mar6s$ and shall not utilise any desi'nation of ori'in or
des%ri&tion or re&resentation whi%h falsely su''ests or re&resents an asso%iation
or %onne%tion with ?ran%hisor or ?ran%hisor %onstitutin' unfair %om&etition or
use similar &rodu%t offerin's to the ?ran%hisors food and 1e!era'e offerin's and
am1ien%e"
)+"4 In the e!ent of termination of this A'reement &ursuant to Se%tions )-") 8 )-"H
hereof$ in addition to any other remedies a!aila1le under this A'reement$
?ran%hisee shall &ay to ?ran%hisor$ within thirty 54.9 days followin' the date of
su%h e!ent$ as liDuidated dama'es and not as a &enalty$ an amount eDual to the
mathemati%al &rodu%e or the ?ran%hise Ser!i%es ?ee des%ri1ed in Se%tion ,"H
hereof multi&lied 1y the num1er of months from the date of termination hereof
to the next date on whi%h ?ran%hisee %ould ha!e !alidly terminated this
A'reement &ursuant to Se%tion 4 hereof &lus any a&&li%a1le taxes assessed on
su%h &aymentG &ro!ided" ayment of su%h liDuidated dama'es is in addition to
all other ri'hts .)@ ?ran%hisor hereunder$ in%ludin'$ without limitation$ the ri'ht
to o1tain eDuita1le relief and to %olle%t amounts owed whi%h a%%rued &rior to
termination of this A'reement" The &arties a%6nowled'e that the inIury %aused to
?ran%hisor 1y ?ran%hisee@s 1rea%h is diffi%ult or im&ossi1le a%%urately to
estimate$ that they intend to &ro!ide for %om&ensation for dama'es whi%h are not
s&e%ifi%ally as%ertaina1le and not as a &enalty" The &arties a'ree that the
sti&ulated method of %om&utation %onstitutes a reasona1le estimate of
?ran%hisor@s &ro1a1le loss resultin' from su%h 1rea%h 1y ?ran%hisee"
)+"- In the e!ent of termination or ex&iration of this A'reement for any reason
whatsoe!er$ the ?ran%hisee shall immediately %ease and refrain from holdin' the
?ran%hised Butlet to the 'eneral &u1li% as a ?ran%hised Butlet or former
?ran%hised Butlet" The ?ran%hisee shall within ten days %han'e the forms$
manuals$ menus$ &rodu%t offerin's slo'an si'ns$ mar6s or sym1ols$ ad!ertisin'
and &romotional material %ontainin' ro&rietary Ri'hts anythin' similar to or
su''esti!e thereof
)+"+ In the e!ent that$ ?ran%hisee fails to dis%ontinue use of the ?ran%hised Mar6s or
other matter referred to in su1-%lause )+"- a1o!e within Ten 5).9 days and the
ro&rietary Ri'hts within fifteen 5)+9 days su1Ie%t to 1ein' &re!ented or delayed
1y any le'al re'ulation or formality in whi%h %ase ?ran%hisee a'rees that
?ran%hisor or ?ran%hisor shall also 1e entitled to inIun%ti!e or other eDuita1le
relief for any !iolation of the fore'oin'"
)+", The termination of this A'reement howsoe!er o%%asioned>
)+",") Shall he without &reIudi%e to any ri'hts whi%h shall ha!e a%%rued to
either &arty hereunder &rior to or as a result or su%h termination> and
)+","H Shall not release ?ran%hisee from @its o1li'ations to &ay the fees or
other sums a%%rued and due 51ut not &aid9 u& to the date of su%h
termination$ nor entitle ?ran%hisee to re&ayment of any monies
already &aid 1y it under and &ursuant to this A'reement
$3. RE"ATIONSHI! OF !ARTIES8 INDEMNIFICATION8 THIRD !ART
RIGHTS
),") Nothin' in this A'reement shall 1e %onstrued as ma6in' the &arties hereto
&artners or Ioint !entures or render either &arty hereto lia1le for any of the de1ts
or o1li'ations of the other &arty hereto" ?ran%hisee shall in no way 1e %onsidered
as 1ein' an a'ent or re&resentati!e of ?ran%hisor or ?ran%hisor in any dealin's
whi%h ?ran%hisee may ha!e with any third &an9@" and ?ran%hisee shall not a%t for
or ma6e any re&resentations on 1ehalf of ?ran%hisor or ?ran%hisor in any su%h
dealin's and shall ha!e no &ower to %ontra%t on 1ehalf of ?ran%hisor or
?ran%hisor" =hene!er ?ran%hisee des%ri1es its relationshi& to ?ran%hisor or
?ran%hisor it shall ma6e it dear that" ex%e&t as aforesaid" it is not an a'ent$
re&resentati!e" or other &erson ha!in' authority to ma6e %ontra%ts or in%ur
o1li'ations 1indin' on ?ran%hisor"
),"H ?ran%hisee shall$ as a'ainst ?ran%hisor$ 1e res&onsi1le for all %laims$ losses$
dama'es$ ex&enses$ and/or lia1ility or whatsoe!er nature to third &arties
ori'inatin' in" or in %onne%tion with$ the o&eration or the ?ran%hised Butlet$
ex%e&t in the %ase of ne'li'en%e$ other 1rea%h of duty$ 1rea%h of %ontra%t$ or
willful default on the &an of ?ran%hisor$ and for all %laims$ %osts$ and demands
IllQ@ dama'es to &ro&erty or for inIury$ illness or death of &ersons dire%tly or
indire%tly resultin' there fromG and ?ran%hisee a'rees to defend and to indemnify
fully ?ran%hisor in res&e%t of@ any su%h %laims$ losses$ dama'es$ ex&enses or
lia1ility$ in%ludin' any le'al fees and %ourt %osts that it may reasona1ly in%ur$
ex%e&t as aforesaid"
$4. FORCE MA@E7RE#
No &arty shall 1e lia1le for any failure to &erform any of its o1li'ation under this
A'reement if the &erforman%e is &re!ented or delayed 1y the for%e maIeure
E!ent 5defined 1elow9 and in su%h %ase and its o1li'ation shall 1e sus&ended so
lon' as the ?or%e MaIeure is %ontinues" Ea%h &arty shall &rom&tly inform the
other of the existen%e of a ?or%e MaIeure e!ent and shall %onsult to'ether to find
a mutually a%%e&ta1le solution$ 7?BR(E MA0EKRE ENENT7 means any e!ent
due to any %aused 1eyond the reasona1le %ontrol of any arty$ in%ludin' fire$
flood$ ex&losions$ a%ts of@ God" (i!il %ommotion$ riots$ war$ a%ts of Go!ernment"
$6. A7THORIT TO ENTER INTO AGREEMENT# >
The ?ran%hisor is fully em&owered to enter into this A'reement and this
A'reement has 1een duly exe%uted and deli!ered 1y the ?ran%hisor"
$9. NOTICES
No noti%e$ demand" reDuest$ %onsent$ a&&ro!al$ desi'nation$ s&e%ifi%ation or
other formal %ommuni%ation 'i!en or made or reDuired to 1e 'i!en or made
hereunder shall 1e effe%ti!e unless 'i!en in writin' in the En'lish lan'ua'e and
shall 1e effe%ti!e only if deli!ered 1y re'istered mail or any other means whi%h
will &ro!ide inde&endent e!iden%e of the date re%ei!ed to the res&e%ti!e &arties
at the followin' address> If to ?ran%hisor as follows>
Surya Ray Elixirs !t" #td"
lot No"-.$ Road No"/$
0u1ilee Hills$
Hydera1ad - +...44
If to ?ran%hisee>
M/s" ::::::::::
::::::::::::::::::::::
:::::::::::::::

unless and until a &arty notifies the other &arties in writin' of a %han'e of
address &ursuant to this Se%tion" Any noti%e shall 1e deemed to ha!e 1een 'i!en
at the date and time it is re%ei!ed$ is refused$ or deli!ery is made im&ossi1le 1y
the intended re%i&ient" To 1e effe%ti!e$ any noti%e whi%h is sent 1y mail shall 1e
sent 1y re'istered mail$ 5and airmail if to another %ountry9$ &osta'e &re&aid"
.:. GO;ERNING "AW AND "ANG7AGE
This A'reement shall 1e inter&reted and %onstrued in a%%ordan%e with the laws
a&&li%a1le in India" The En'lish !ersion of this A'reement shall 'o!ern and
%ontrol in the e!ent of dis%re&an%y 1etween the En'lish and any !ersion in
another lan'ua'e
.$. DIS!7TE RESO"7TION
All dis&utes and differen%es arisin' 1etween the &arties hereto in res&e%t of$ in
%onne%tion with or arisin' from this a'reement shall 1e @referred to ar1itration of
a sole ar1itrator under the &ro!isions of the Ar1itration and (on%iliation A%t
)**, or any statutory modifi%ation or ena%tment thereof for the time 1ein' in
for%e" The said ar1itration shall 1e held in Hydera1ad"
... MISCE""ANEO7S
HH") The failure of either &arty at any time to enfor%e any of the terms$ &ro!isions or
%onditions of this A'reement or to exer%ise any ri'ht hereunder shall not
%onstitute a wai!er of the same or affe%t that &arty@s ri'ht thereafter"
HH"H If any %lause or &ara'ra&h of this A'reement is held in!alid or otherwise
unenfor%ea1le 1y any ar1itration award or any Iud'ment or order of a %ourt of
%om&etent Iurisdi%tion$ su%h findin' shall not in!alidate the remainder of the
%lauses or &ara'ra&hs of this A'reement$ and su%h remainder shall remain I for%e
and effe%t as if the A'reement had 1een exe%uted with the in!alid %lauses or
&ara'ra&hs eliminated$ unless in the reasona1le o&inion of ?ran%hisor or
?ran%hisee the effe%t of su%h award$ Iud'ment$ or order frustrates the &ur&ose of
this A'reement" @
HH"4 No !ariation$ modifi%ation or alteration of any of the terms of this A'reement
shall 1e of any effe%t unless e!iden%ed in writin' si'ned 1y or on 1ehalf of ea%h
of the &arties hereto"
HH"- This A'reement %onstitutes the entire a'reement of the &arties and su&ersedes all
&rior ne'otiations$ %ommitments$ re&resentations and underta6in's of the &arties
with res&e%t to the su1Ie%t matter hereof
HH"+ The headin's of the %lauses are inserted for %on!enien%e only and in no way
affe%t the %onstru%tion of this A'reement or limit the s%o&e Rof any of the terms$
%onditions or &ro!isions of this A'reement"
HH", The remedies 'ranted herein to the ?ran%hisor are %umulati!e and are not
intended to 1e ex%lusi!e of any other remedies whi%h it may lawfully 1e entitled
to in %ase of any 1rea%h or threatened 1rea%h of the terms and &ro!ision hereof"
HH"/ All ri'hts under this A'reement shall 1e 1indin' on and inure to the 1enefit of
the 1enefit of the su%%essors and &ermitted assi'ns of ?ran%hisee$ ?ran%hisor$
and ?ran%hisor"
HH"J Neither &arty shall 1e lia1le for failure to &erform its o1li'ations under this
A'reement if failure is due to %ir%umstan%es 1eyond its reasona1le %ontrol"
HH"* ?ran%hisee shall %om&ly with all a&&li%a1le laws and re'ulations$ and shall
timely o1tain$ and shall maintain in full for%e and effe%t at all times durin' the
term of this A'reement$ at its sole %ost and ex&ense$ any and all a&&ro!als$
&ermits$ %ertifi%ates$ and li%enses ne%essary for the full and &ro&er &erforman%e
of this A'reement"
HH"). ?ran%hisee shall notify 1oth ?ran%hisor in writin' within fi!e 5+9 days of its
6nowled'e of the %ommen%ement of any a%tion$ suit$ or &ro%eedin'$ and of the
Issuan%e of any order$ writ$ inIun%tion$ aware$ or de%ree of any %ourt$ a'en%y$ or
other 'o!ernmental instrumentality$ whi%h may ad!ersely affe%t the o&eration or
finan%ial %ondition of ?ran%hisee"
HH")) ?ran%hisee a%6nowled'es that it has %ondu%ted an inde&endent in!esti'ation of
the 1usiness fran%hised hereunderG and re%o'niCes that the 1usiness !enture
%ontem&lated 1y this A'reement in!ol!es 1usiness ris6s and that its su%%ess will
1e lar'ely de&endent u&on the a1ility of ?ran%hisee as an inde&endent
1usinessman" ?ran%hisor ex&ressly dis%laims the ma6in' of$ and ?ran%hisee
a%6nowled'es that it has not re%ei!ed from ?ran%hisor or ?ran%hisor or their
a'ents and re&resentation$ indu%ement$ warranty or 'uarantee$ ex&ress or
im&lied$ as to the &otential !olume &rofits$ or su%%ess of the 1usiness !enture
%ontem&lated 1y this A'reement"
HH")H That the &arties here1y %onfirm and de%lare that this A'reement has 1een entered
into and exe%uted 1y the &arties here to of their own a%%ord and free will" This
a'reement is 1indin' u&on the &arties hereto and their res&e%ti!e su%%essors in
interest and &ermitted assi'ns and will not 1e modified ex%e&t 1y written
a'reement 1y 1oth rin%i&al and the Mana'ers / (ondu%tors"
HH")4 This a'reement is exe%uted in du&li%ate %o&ies$ ea%h of whi%h will 1e deemed to
1e the ori'inal"
Franchisor
Si'nature>
?or Surya Ray Elixirs !t" #td"
Franchisee
Si'nature>
?or :::::::::::::
Witness#
)"
H"