FRANCHISE AGREEMENT

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INDEX:

1. RECITALS & DEFINITIONS 4

2. NATURE OF BUSINESS 5
3. GRANT OF FRANCHISE 5
4. SCOPE OF FRANCHISE 6
5. TERM OF FRANCHISE 7
6. FEES & PAYMENTS 7
7. PREMISES SELECTION & APPROVAL 8
8. RENEWAL & RELOCATION OF OUTLET 9
9. ROLLZONE OUTLET SETUP AND STANDARS 10
10. ROLES AND RESPONSIBILITES OF FRANCHISOR 10
11. FRANCHISEE ROLES, RESPONSIBILITIES & OBLIGATIONS 12
12. TRAINING AND STAFFING 17
13. ADVERTISING AND MARKETING 18
14. ROYALTY 19
15. TRADEMARKS AND TECHNOLOGY 19
16. TERMINATION 21
17. UPON TERMINATION / EXPIRY OF AGREEMENT 23
18. TRANSFER OF THIS AGREEMENT 23
19. CONFIDENTIAL OPERATIONS MANUALS 24
20. CONFIDENTIAL INFORMATION 25
21. AUTHORITY 25
22. AMENDMENTS OF THIS AGREEMENT 26
23. APPLICABLE LAWS AND DISPUTE RESOLUTION 26
24. INDEMNITY & LIABILITY 26
25. AGENCY & FORCE MAJEURE 27
26. WAIVER & REMEDIES CUMULATIVE 27
27. INTERPRETATION 28
28. CONTINUING PROVISIONS & SEVERABILITY 28
29. ACCEPTANCE OF TERMS & JURISDICTION 28
30. ENTIRE AGREEMENT 29
31. ANNEXURE 1 : FRANCHISEE’S DESIGNEE 30
32. ANNEXURE 2 : CONFIRMATION OF FRANCHISE OUTLET 31
33. ANNEXURE 3 : MENU 32
34. ANNEXURE 4 : DETAILS OF FIRM/COMPANY 34
35. ANNEXURE 5: FRANCHISEE OWNERS INFORMATION 35
36. ANNEXURE 6: SUPPORTING DOCUMENTS 43

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 FRANCHISE AGREEMENT

This Franchise Agreement is signed on _________between

R cube ventures, a registered firm (Registered under Registrar of Firms) represented by Raghu
Rao, Muninder Rao & Sanjay Rao and having its registered office at 5-9-286/2/25, Rajiv Gandhi
Nagar, Prashanth Nagar, Kukatpally, Hyderabad – 500072, India. (Hereinafter referred to as
“Franchisor” which expression shall unless repugnant to the context or meaning thereof be
deemed to include, legal representative, executors, administrators, successors and permitted
assigns) of one Part

AND

______________________, a registered firm (Registered under Registrar of Firms) represented

by ________________S/O____________________ and having its registered office at ________

________________________________ (Hereinafter referred to as "Franchisee" which

expression unless repugnant to the context or meaning thereof be deemed to include, legal
representative, executors, administrators, successors and permitted assigns) of the other Part.

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RECITALS:

 The Franchisor and team has developed an urban fast food concept under the brand name
and Trademark of “Rollzone”.
 Rollzone is an urban fast food concept chain that offers mouthwatering kathi rolls that
tickle your taste buds at an affordable cost, prepared and served live in a healthy and
hygienic environment.
 Rollzone Foods Services, a registered firm having its office at Hyderabad, has developed
a successful business model and franchise system. This Business model includes
confidential information such as copyrights, recipes, concept, business process and trade
secrets.
 Franchisor is the owner of the brand name, trade mark, service mark and all other rights
including copy rights, right over patents and other associated trademarks.
 The Franchisor is looking to expand the business to multiple cities, and is willing to
grant to the Franchisee the rights set out herein.
 The Franchisee expressed interest to set up and operate Rollzone outlet and conduct
business in consonance, corporate image and objectives of the Franchisor.
 Franchisee also represents that Franchisee has the required financials to take the
Franchise of Rollzone.
 Franchisee here by agrees to all the terms and conditions listed in this agreement.

Both the parties agree to the terms and conditions mentioned in this agreement as follows:

1. DEFINITIONS

a. “Franchisor” is the entity that has developed a successful franchise system and is willing
to expand their brand by offering Franchise to interested Franchisees.
b. “Franchisee” is the entity that has shown interest in the Franchise and is willing to run
and operate the business in the Trademark of Franchisor.
c. “Outlet” is the premises where the Rollzone concept shall be set up under the trade
marks, layout and theme of Franchisor.
d. “Products” are referred to the food products sold in the Rollzone outlet and the list of
products are mentioned in the annexure 3.
e. “Agreement” is referred to this franchise agreement, the contract signed by both the
parties.

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 f. “Franchise System” means the system which consists of food and beverage products
prepared according to the confidential recipes, formulas, preparation, service and
delivery procedures and techniques, offered in a theme of distinctive exterior and interior
layout, design, signage, furnishings and materials and using certain distinctive types of
facilities, equipment, supplies, ingredients, business techniques, methods and procedures
together with sales promotion programs, all of which may modify and change from time
to time.
g. “Franchise Fees” is the initial fees payable by Franchisee for the grant of Franchise.
h. “Customer” is the individual/person who visits the outlet to purchase the food and
beverage products.

2. NATURE OF BUSINESS

a. Franchisor has started an urban kathi rolls concept chain that sells products including but
not limited to Rolls, Kebabs, Fries and Beverages.

b. The key concept of these "ROLLZONE" outlets is to serve high quality and premium rolls
at affordable price to its customers in the quick service format.

c. The Franchisor has developed a Business Model which has a standardized process, theme,
concept, signage, branding, layout, equipment, methods, procedures and marketing
standards.

d. The Franchisee here by agrees to serve only the products authorized by Franchisor in
ROLLZONE outlet.

e. It is the obligation of the Franchisee to adopt any changes as and when demanded by the
Franchisor.

3. GRANT OF FRANCHISE

a. The Franchisor hereby grants to the Franchisee a license to set up and run “ROLLZONE”
at the chosen location in accordance with the methods, operating procedures, standards
of customer services and hygiene conditions.

b. Franchisor is the owner of the brand name, trade mark, service mark and all other rights
including copy rights, right over patents and other associated trademarks.

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 c. The license under this Agreement has been granted by the Franchisor to the Franchisee
only for running /operation/management of only one outlet under the brand name and
style of "ROLLZONE".

d. Franchisee has been offered Franchise to operate and run the outlet at the following
location:

(Address of the location)

e. The License offered to Franchisee through this agreement is a single unit franchise only
and it is given for a single location, duly approved by Franchisor.

4. SCOPE OF FRANCHISE

a. The Franchise rights offered through this agreement cannot be assigned to any third
party.

b. Franchisor reserves the right and ownership to grant license to interested people to start
new ROLLZONE outlets in the surroundings of the existing outlet (within 3 KM radius), if
the new location does not compete with existing location and also if it adds value to the
existing outlet. The first right of refusal will be offered to existing Franchisee in the radius
of 3 KM.

c. The Franchisee can sell the products in the ROLLZONE outlet and through home delivery
option in surrounding 3 KM only. Franchisee can also accept or take
function/corporate/party orders.

d. Franchisee cannot supply products and raw materials to any other outlet/outlet.

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 e. The Franchisee and its team are solely responsible for the complete management and
smooth functioning of the outlet.

5. TERM OF FRANCHISE

a. The license granted to Franchisee will be effective for a period of 5 years from the date of
signing of this agreement.

b. In case the Franchisee wishes to continue with the franchise business, he needs to apply
for the renewal at least 3 months before the expiry of the agreement.

c. The agreement can be renewed for another term of 5 years upon the mutually agreed
terms and conditions at the time of renewal.

6. FEES AND PAYMENTS

a. Franchisee agrees to pay the standard franchise fees of Rs. 3,00,000 (Three Lakh Rupees)
plus 18% GST on or before the day of signing this agreement.

b. Franchisee agrees that all fees paid to the company is non-refundable.

c. All fees payment shall be made by Cheque/NEFT in favor of "R cube ventures", payable at
Hyderabad.

d. Franchisee agrees that Franchisor will not be responsible for any taxes with respect to any
transactions or payments contemplated by or pursuant to this Agreement.

e. Franchisee also agrees to pay applicable taxes along with Fees or any payments to
Franchisor.

f. Franchisee shall maintain a bank account for the Rollzone Franchise outlet and make all
payments from the same account.

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7. PREMISES SELECTION AND APPROVAL

a. Franchisee’s Responsibility: Franchisee assumes all cost, liability, expense and

responsibility for locating, obtaining and developing premises for the Franchise outlet and
for constructing and set up of the complete outlet.

b. Approval of Premises: Franchisee agrees to take written approval of premises from

Franchisor. Franchisee shall provide the following details of premises:
 Dimensions of premises
 Photographs of premises and surroundings
 Parking details
 Neighbor brands

c. Within 30 days after receipt of the complete details of premises, Franchisor shall advise
Franchisee in writing about the premises approval if the premises matches pre-requisites
required for Rollzone outlet.

d. Lease Requirements of premises:

 The premises required for setting up a Rollzone outlet is minimum of 150 Square Feet.

 The frontage shall be minimum of 10 feet.

 The premises must have water, drainage and electrical points.

 The initial term of the lease must not be less than the term of this Franchise Agreement.

 Franchisee must provide Franchisor with lease document of the premises.

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8. RENEWAL AND RE-LOCATION OF OUTLET

a. The Franchisor can renew the Franchise agreement for one extended term of 5 years upon
mutually accepted terms and conditions.

b. Franchisee has to apply for relocation only after 6 months of operations of Rollzone
outlet. Once relocation is applied, Franchisor will perform due diligence to understand
the reasons and necessity for relocation. Based on due diligence, Franchisor shall evaluate
the causes and come to a conclusion.

c. Franchisee can apply for relocation of outlet in case of any issue in the existing location.
Franchisor will then verify and based on mutual consent, relocation would be offered.

d. Franchisee agrees that the re-location shall happen only once Franchisor approves the
new premises.

e. Franchisee will be offered maximum of 6 months to re-locate and open the Rollzone
outlet.

f. Franchisee agrees to pay all the expenses for termination of lease for the existing location
before relocating to new location.

g. The Franchisor is not liable for any issues that may occur during re-location or termination
of lease for existing location and the Franchisee agrees to take responsibility in case of
such issues.

h. Franchisee agrees that the costs necessary for relocation has to be borne by Franchisee
only.

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9. ROLLZONE OUTLET SET UP AND STANDARDS

a. Franchisor has the rights to develop and design layout, theme of the ROLLZONE outlet
and the Franchisee agrees to follow them.

b. The Franchisee here by agrees to follow all the standard specifications in setting up the
outlet as specified by Franchisor.

c. Franchisee is responsible for the complete set up of the ROLLZONE Outlet including
interiors, theme, branding, layout and signage.

d. Franchisee agrees that the premises cannot be leased or sub-leased to a third party. If the
Franchisee commits such an act, it shall be treated as a breach of this agreement and thus
resulting in termination without notice.

e. Any kind of modifications of fixtures or set up in ROLLZONE outlet cannot be made

without prior approval of the Franchisor.

f. Franchisee shall obtain all necessary licenses, permissions, documents and registrations
for starting the outlet.

g. All the local taxes, fees, charges and other applicable payments in related to this
ROLLZONE outlet shall be borne by Franchisee.

h. Franchisor agrees to procure good equipment for this ROLLZONE outlet. Franchisee
agrees to make the payment necessary for the equipment to the Franchisor.

10. ROLES & RESPONSIBILITIES OF FRANCHISOR:

a. Franchisor shall at all times provide support to the Franchisee including but not limited to
operations, training, recipes, quality, customer reviews and marketing.

b. Franchisor agrees to visit all the premises chosen by Franchisee for opening the Rollzone
outlets. Franchisor alone deserves the right to approve the premises for Rollzone outlets.

c. Franchisor shall send an architect to all the premises chosen by Franchisee. Franchisor
also agrees to share 2D & 3D layouts with specifications to the Franchisee.

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d. Franchisor agrees to supply high quality raw materials and ingredients to the Franchisee.
Franchisor ensures to follow all hygiene procedures during transportation of the raw
materials.

e. Franchisor shall supply freshly made curries, kebab material and paratha dough to
Franchisee outlet on a daily basis from their central kitchen.

f. Franchisor shall support Franchisee in recruitment of employees. Franchisor also takes

responsibility of training the employees.

g. Franchisor shall provide a training program to Franchisee and its team. Training shall be
provided at the Rollzone Central Kitchen located in Prashant Nagar, Kukatpally,
Hyderabad and also at the Franchisor’s office and any other place as may be designated
by Franchisor. English shall be the primary language for communication during training.

h. Franchisor shall provide assistance to Franchisee for the outlet starting from setup till the
grand launch.

i. Franchisor at all times shall promote the brand through social media, offline media and
electronic media as and when necessary.

j. Franchisor agrees to provide POS software to all Rollzone outlets.

k. Franchisor is responsible for the complete setup and testing process of equipment for the
ROLLZONE outlet.

l. Franchisor has a specific uniform design and the uniforms will be sent by Franchisor to all
the outlets.

m. Franchisor agrees to regularly update brand information in the official website and social
media accounts.

n. Franchisor is responsible for training employees of all outlets as and when new products
are launched.

o. Franchisor ensures to support Franchisee during pre-opening phase and also during
operations phase on a daily basis as and when requested by Franchisee.

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 p. Franchisor shall perform audits in every Rollzone outlet on regular basis. Franchisor shall
deserve the right to perform surprise audits.

q. Franchisor shall ensure to monitor the business of all Rollzone outlets and to provide
them required support to improve the sales in each outlet.

r. Franchisor ensures to introduce new products on a regular basis, as and when required.

s. Franchisor ensures to share best practices, processes and quality standards on a monthly
basis with the Franchisee.

t. Franchisor agrees to notify Franchisee of any changes in specifications, standards and

obligations of the brand on a timely basis.

u. Franchisor shall furnish to Franchisee, in the English language, one copy of its (a)
operating and equipment specifications for a standard ROLLZONE outlet, (b) standards
and specifications for equipment, fixtures, furnishings, signs, improvements, materials,
supplies and paper goods needed to construct a ROLLZONE outlet, (c) production
methods, processes, techniques, recipes, and pricing, and (d) confidential operations
manuals (the “SOP Manual”) for use by ROLLZONE Franchisees.

v. Franchisor shall provide advertising and marketing assistance and/or materials as it

deems advisable, in its sole discretion to the Franchisee. Franchisor shall advertise the
grand opening of each ROLLZONE Outlet in the Territory on its principal website
(“Franchisor’s Website”), Social Media and will list the location of every ROLLZONE outlet
on Franchisor’s Website.

11. FRANCHISEE ROLES, RESPONSIBILITES & OBLIGATIONS

a. Franchisee agrees to abide to all the responsibilities and obligations mentioned in this
section of the Agreement.

b. The Franchisee has to complete the mandatory training before the opening of this
ROLLZONE outlet.

c. Franchisee agrees to sign the lease of premises (for ROLLZONE outlet) with the premises
owner. Franchisee has to submit a proof of the lease of premises during the signing of this
agreement.

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d. Franchisee agrees that the chosen premises is duly approved by Franchisor.

e. Franchisee has to pay the rent, electricity charges, water charges and other charges to
the appropriate authorities / person with in the due date and also to pay for maintenance
or such other charges for usage of common area, if any for the premises;

f. It will be the responsibility of the Franchisee for ensuring statutory compliance with
respect to the operations carried out at the outlet including compliance with the
Prevention of Food Adulteration Act (PFA), All Municipal and Health Safety Legislations
etc. of the Local or Municipal Government or Authority.

g. The Franchisee will arrange to obtain registration and license / permission / sanctions
under Sales Tax, Shops & Establishments Act, Prevention of Food Adulteration Act and all
Municipal and other applicable Acts / Rules for running the outlet at Franchisee’s cost in
Franchisee’s name as a Franchisee of the Franchisor and it shall be the responsibility of
the Franchisee to keep the said registration / licenses / permissions / sanctions valid at all
times. The Franchisor is indemnified against any claims and liabilities arising on this
account.

h. Franchisee agrees to operate this ROLLZONE outlet by following all the standard policies,
specifications and operating procedures mentioned in the Operations and SOP Manual
provided by Franchisor.

i. Franchisee has to purchase all the key raw materials and products from the Franchisor,
its vendors as specified by Franchisor.

j. The Franchisor will provide the complete infrastructure, furniture, equipment, sign
boards and other material as discussed and the cost of all these materials have to be
borne by the Franchisee.

k. The Franchisor can carry out any changes and alterations in the furnishing of the premises
as and when necessary at the Franchisee’s cost upon mutual consent.

k. It shall be the responsibility of the Franchisee to make sure that the outlet functions every
day except on closed days or compulsory holidays as per the Local Shops and

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 establishment Acts. Other than this the Franchisee needs to take the approval of the
Franchisor in order to keep the outlet closed because of any reason.

l. The Franchisee agrees to indemnify the Franchisor against any kinds of damage caused
by the staff employed at the outlet. This will include damage to the outlet, company
products, promotion materials etc.

m. All the liability that may arise on account of workmen’s compensation and/or any
payments to be made on account of any injury caused to any staff employed at the outlet
would be the sole responsibility of the Franchisee.

n. It shall be the duty of the Franchisee to abide by all labor laws and Minimum Wages Act
as prescribed by the law.

o. It is the responsibility of the Franchisee to ensure that the activities that are carried out
at the outlet is done at the best hygiene levels and an acceptable service standard is
maintained at the outlet.

p. The Standards of quality and quantity will be mentioned in the Standard Operating
Manual and the Franchisee should also maintain the prescribed standards for the portion
size. The Franchisee will always adhere to the prescribed standards laid down by the
Franchisor in the Standard Operating Manual.

q. The Franchisor and its representatives can make surprise visit at the outlet to check the
functioning of the outlet. Any deviations from the standards will be recorded and the
same will be deemed to be corrected within the time frame as specified by the Franchisor.

r. The Franchisee is wholly and solely responsible for the day to day running of the outlet.

s. The Franchisee should always maintain all sensitive information pertaining to the brand.
Information such as Standard Operating Manual, Recipes, etc will be kept as a trade secret
of the Franchisor. Franchisee should take care of all the confidential information. Any
misuse or breach if found by Franchisor, the franchise agreement will be terminated and
legal actions will be taken against the Franchisee along with payment of confidentiality
cost of Rs. 15,00,000 (Fifteen Lakh Rupees).

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t. The Franchisee has to follow the guidelines of Franchisor for the outlet operational hours.
The Franchisee cannot do catering services for the products without the permission of
the Franchisor.

u. The Franchisee should maintain the sufficient stock of raw materials to meet demand
from the customers of the business and to permit the efficient operation of the business.
The minimum level of the stock of raw materials would be specified by the Franchisor and
that can be increased on the basis of the increasing demand as and when required.

v. The Franchisee needs to keep the outlet up to date according to the requirement of the
Franchisor and any further development in the field of technology.

w. Franchisor will extend support to Franchisee in the marketing strategies and any kind of
support required for the development of the outlet. Franchisee has to take approval of
the Franchisor before involving itself and the brand name in any advertising/marketing
campaigns.

x. To use only such letter headings, invoice, signs, display materials, promotional literature,
equipment and other items in connection with the business as shall be approved in
writing by the franchisor and immediately to desist from the use of display of any signs
materials or objects as the franchisor directs.

y. Diligently to carry on the business on moral and ethical grounds, and to use best
Endeavour to promote and increase the business and cooperate with Franchisor and
other Franchisees of the Franchisor in this regard and also to get an affidavit cum
undertaking from its employees holding themselves to be personally responsible and
accountable to all concern authorities/persons in event of any unethical/immoral
practices adopted or used by them while rendering services to the customers.

z. Franchisee has to ensure that all personnel employed in the business shall at all times
present a neat, clean appearance and render competent, sober and courteous service to
customers and comply with any and all directions of the Franchisor in this respect relating
to dress, appearance.

aa. Franchisee will have to obtain an insurance policy for ROLLZONE outlet and equipment
set up. A copy of the insurance policy has to be submitted to the Franchisor after it is
confirmed. Franchisee has to incur any loss, damage or expenses that might arise in the
outlet. Franchisor must be informed in case of any termination, expiration or change of

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 insurance policy. In case of any fire issues or any damage if occurred in the outlet, the
Franchisee has to bear all the costs for re-development. All costs incurred due to damage
or injury for customers, labor and Franchisor team must be borne by Franchisee.

bb. Franchisee also agrees to obtain an insurance policy for its employees.

cc. Franchisee cannot involve in any direct or indirect relation/association with a competing
business during the term of this agreement. Franchisee, his/her immediate family
members, close associates cannot involve in competing business during term of this
agreement. In case of such involvement, the agreement will be terminated and the
Franchisee has to pay Rs. 5,00,000 (Five Lakh Rupees) plus 6% of its gross annual sales
(Estimated Sales - For remaining years of agreement term) or Rs. 30,00,000 (Thirty Lakh
Rupees) , which so ever is higher as damage cost. Competing Business includes business
that sells any products similar to ROLLZONE such as Rolls and Wraps.

dd. Franchisee has to purchase the Point of Sale software (POS) system from the Franchisor
by paying the amount. Franchisee also has to pay Franchisor the maintenance cost
incurred as part of POS System. Franchisee has to purchase suitable hardware as per
specifications mentioned by Franchisor. Franchisee agrees to update the software when
necessary. Franchisee has to submit and send the data of sales and inventory every week
to Franchisor. Franchisor can visit the outlet and retrieve information from POS at any
point of time.

ee. Franchisee has to maintain all the business-related documents, registrations and records
during the term of this agreement. Franchisor and their team has the right to perform
audit using these documents and records without prior notice. In case of any discrepancy
in the records and gross sale reported to Franchisor, the Franchisee has to pay 2 times
the royalty of the previous month.

ff. Franchisee has to operate the business on the name of ROLLZONE only. Franchisor has
the right to remove any such signs if necessary to protect the goodwill associated with
the marks. All the signage with ROLLZONE brand name and trade mark will always remain
the property of Franchisor even if Franchisee has paid for it. Franchisee cannot use any
trademark or signage of ROLLZONE after termination of agreement.

gg. Franchisee cannot start a website for the single unit ROLLZONE outlet that it operates.
Franchisee cannot create content in social media without prior written approval from

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 Franchisor. Franchisee has to comply with all the legal laws and regulations related to the
rights of trade mark and brand name of Franchisor.

hh. Franchisee cannot use the words "ROLLZONE" or any such words that depicts the brand
name and business of Franchisor without approval. Franchisee is responsible for any
content(Bad content, content that is against brand or any similar posted by
Franchisee/Franchisee Team/labor) that damages the image and brand name of
Franchisor. In such instance, Franchisee will have to face legal issues and also pay the
damage cost.

ii. Franchisee has to set up an internet connection, debit/credit card swiping machine and
current account for ROLLZONE outlet at their expense. Franchisee has to use the e-mail
address given by ROLLZONE for all official and ROLLZONE outlet related operations.

jj. In case of any health-related complaints from customers due to Adulteration/recipe issue
or any other issues, the Franchisor will perform due diligence to understand the causes
of Adulteration and take necessary actions. If the due diligence report specifies that the
cause of Adulteration is because of the Franchisee/its team’s operations, the Franchisee
will have to bear all the damage costs. Franchisor shall be held responsible only if the raw
materials supplied to Franchisee are of low quality or expired, when delivered. All the
other causes of Adulteration except as mentioned above, Franchisee shall be held
responsible. The probable causes include, but not limited to, Safety & hygiene
procedures, proper maintenance and storage of all raw materials, usage of third party
raw materials other than those supplied by Franchisor.

kk. The Operations Manual consists of information starting from opening of the outlet in
morning till closure. This includes trade secrets, recipes, procurement of raw materials,
methods, process and standard functioning. Franchisee has the sole responsibility to
ensure that the content in this manual is not copied or exchanged to an outsider.

12. TRAINING AND STAFFING

a. Franchisor shall hire the employees for the Franchisee outlet initially. If any of the
employee wishes to terminate the job, Franchisee takes responsibility to find
replacement of employee.

b. Training will be provided to the new employees by the Franchisor.

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 c. Franchisor agrees to send an experienced team member to this ROLLZONE outlet for the
initial one week to ensure smooth functioning of operations.

d. Franchisee can also recommend or hire employees and send them for interview to the
Franchisor. For the selected candidates, Franchisor would provide training.

e. Franchisee is responsible for managing of the employees at ROLLZONE outlet.

f. In case of theft, misbehavior or any other issues created by employees, Franchisee is

responsible to take all necessary actions to resolve it. Although the Franchisor should be
informed about any such incident taking place.

g. Franchisee is responsible for the payment of salary to the employees.

h. All the liability that may arise on account of workmen’s compensation and/or any
payments to be made on account of any injury caused to any staff employed at the outlet
would be the sole responsibility of the franchisee.

13. ADVERTISING & MARKETING

a. Franchisor will always support Franchisee with the marketing strategies and any support
required for development of the outlet. But, the costs incurred as part of the marketing
activities have to be borne by the Franchisee.

b. Franchisee has to take prior approval from the Franchisor before involving or initiating
any advertising/marketing campaigns.

c. Franchisee may propose promotion ideas and strategies to the Franchisor.

d. Franchisee agrees to spend at least 2% of the gross monthly sales on advertising and
marketing to ensure long term and continuous profitable business.

e. Franchisor also involves in advertising and marketing of the brand and its outlets through
its official website, social media platforms and any other as and when required.

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14. ROYALTY

a. Franchisee shall pay 8% on net sales as Royalty to Franchisor on a monthly basis.

b. GST of 18% also shall be paid on the royalty amount to Franchisor along with royalty.

c. Net Sales is the total monthly sales after deduction of applicable taxes paid to
government, allowances and discounts.

d. The Royalty amount (along with 18% GST) has to be paid in form of Cheque/Cash
Deposits/NEFT in Current Account of the Franchisor.

e. The payments should be made to the Franchisor within 6 days from the end of the
previous month.

f. In case of failure of payment for two months, a notice will be issued and if the payment
still remains due, the agreement will be terminated.

15. TRADE MARKS & TECHNOLOGY

a. Franchisor represents with respect to the Trade Marks that:

 Franchisor is the owner of all right, title, and interest in and to the Trade Marks, and
Franchisor has the right to use, and to license others to use.
 Franchisor will only use and permit Franchisee to use the Trade Marks in accordance with
the System and the standards and specifications attendant thereto which underlie the
goodwill associated with and are symbolized by the Trade Marks.

b. With respect to Franchisee’s licensed use of the Trade Marks pursuant to this Agreement,
Franchisee agrees that:

 Franchisee shall use the Trade Marks only in the manner authorized and permitted by
Franchisor. Franchisee shall not use any of the Trade Marks on any uniform, print or
advertising materials, products, supplies, menus, posters, brochures, signage, awnings or
umbrellas only in accordance with the Manuals or with the prior written approval thereof
by Franchisor.

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 Franchisee shall not use the Trade Marks in conjunction with the trademark, trade name
or service mark of any other person or entity without obtaining Franchisor’s prior written
consent, and in the event of such consent, strictly in accordance with Franchisor’s then
current requirements.

 Unless otherwise authorized or required by Franchisor, Franchisee shall operate and

advertise the Franchise outlet only under such Proprietary Marks as may be authorized
by Franchisor and only in the manner prescribed by Franchisor. Franchisee shall
discontinue the use of, destroy or modify all exterior signs as are declared obsolete by
Franchisor within sixty (60) days of receipt of written notice from Franchisor.

 Franchisee’s right to use the Trade Marks is limited to such uses as are authorized under
this Agreement, and any unauthorized use thereof shall constitute an infringement of
Franchisor’s rights.

 Franchisee shall promptly notify Franchisor of any suspected unauthorized use of the
Trade Marks. Franchisee acknowledges that Franchisor has the sole right to direct and
control any administrative proceeding or litigation involving the Trade Marks, including
any settlement thereof.

c. Franchisee expressly understands and acknowledges, based on Franchisor’s

representations herein and without any independent investigation by Franchisee, that:

 Franchisor is the owner of the Trade Marks and the goodwill associated with and
symbolized by them, and insofar as is known to Franchisor, Franchisor has the right to
license Franchisee to use the Trade Marks pursuant to and in accordance with the terms
hereof.
 The Trade Marks are valid and serve to identify the Brand name and those who are
franchised under the Brand.
 Franchisee shall not directly or indirectly contest the validity or the ownership of the
Trade Marks, or of Franchisor’s ownership of such Trade Marks.
 Franchisee’s use of the Trade Marks pursuant to this Agreement does not give Franchisee
any ownership interest or other interest in or to the Trade Marks, other than the
nonexclusive license granted herein.
 Any and all goodwill arising from Franchisee’s use of the Trade Marks in its operation of
the Rollzone outlet shall inure solely and exclusively to the benefit of Franchisor as the
owner of the Trade Marks; upon expiration or termination of this Agreement and the

20
 license herein granted, no monetary amount shall be assigned as attributable to any
goodwill associated with Franchisee’s use of the Brand name or the Trade Marks.

d. Franchisor shall have the right to specify or require that certain brands, types, makes,
and/or models of communications, computer systems, and hardware be used by
Franchisee, including without limitation: (a) back office and point of sale systems, data,
audio, and video, systems for use at the Franchisee outlet; (b) printers and other
peripheral hardware or devices; (c) archival back-up systems; (d) Internet access mode
and speed; and (e) physical, electronic, and other security systems (collectively, the
“Computer System”).

16. TERMINATION

a. If the Franchisee sells products other than the ones mentioned and specified by
Franchisor without prior approval. In this case, Franchise agreement will be terminated
and Franchisee will have to pay amount for such an activity.

b. If Franchisee fails to maintain records, documents, registrations and all those required to
run and establish the business in the chosen premises. In such cases, Franchisee will be
given a notice to get necessary documents in 30 days. If Franchisee fails to do so in 30
days, this Franchise agreement stands terminated and Franchisee will pay damage cost
to the Franchisor.

c. If the Franchisee does not pay the lease/rental amount to the premises owner and
creating bad image for the Franchisor and ROLLZONE brand name, the Franchisee will also
face legal issues and pay damage costs to Franchisor. This agreement also would be
terminated in such instance.

d. If the Franchisee or immediate family members/associates involve in competing business,

this agreement will be terminated and huge compensation has to be paid as mentioned
in the clause 11.cc.

e. If this ROLLZONE outlet operated by Franchisee is closed for more than 3 days without
prior notice, this franchise will be terminated.
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f. If the Franchisee does not pay Royalty amount for 2 months, a termination notice would
be given by Franchisor.

g. If the premises of this ROLLZONE outlet is leased or sub leased to any third party, this
agreement stands terminated.

h. Any such activity/instance/event that happens through Franchisee or its employees and
through which Franchisor/ROLLZONE brand name and reputation is damaged, this
agreement is terminated. A serious legal action would be taken over Franchisee along
with damage costs.

i. In such scenario, wherein the customer faces an issue with quality of products served,
freshness of products which might cause damage to health of customer and in return
customer files a complaint against the ROLLZONE outlet. This will not only damage this
ROLLZONE outlet but also creates very bad reputation and bad image in people about
Franchisor, ROLLZONE brand name and its products. For such a negligent event, occurred
through Franchisee and employees will result in termination of this agreement and legal
proceedings. All the costs that may incur including court fees, lawyer/attorney fees,
damage costs and any other costs might be borne by Franchisee. Franchisee also has to
pay compensation to the Franchisor.

j. If the Franchisee transfers this agreement or joins in a partner to this business without
written approval from Franchisor, this franchise remains terminated.

k. In any scenario, if the franchise agreement is terminated or if the Franchisee fails to

operate business, Franchisor deserves the right to buy the Franchisee outlet. The terms
will be depending on mutual discussion between Franchisor and Franchisee.

l. Upon the expiration of term of this agreement, this stands terminated.

m. If the Franchisee does not follow any provision/clause/policy/standards of this agreement

and operations manual, franchisee will be warned only once. If the Franchisee does not
follow any standards even after warning, this agreement will be terminated.

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17. UPON TERMINATION/EXPIRY OF THIS AGREEMENT

a. All the rights and license offered will also terminate.

b. Franchisee cannot use any signage, branding, trade mark, copyrights, brand name, colors,
POS software, recipes, products and all such related to Franchisor.

c. Franchisee cannot start any business in the premises of Rollzone outlet.

d. Franchisee cannot sell any products or items similar to or that competes with Franchisor
for at least 3 years from termination or expiry.

e. Franchisee has to return all manuals, documents and material provided by the Franchisor.

f. Franchisee has to cancel all the registrations, documents and any similar records that has
Franchisor brand name.

g. All the costs for cancellation has to be borne by Franchisee.

h. All social media accounts, internet connection, telephone numbers and all such related
to Franchisor brand name must be cancelled.

18. TRANSFER OF THIS AGREEMENT

a. Franchisee has to discuss about the transfer, profile of the interested parties to Franchisor
for review. Franchisor after reviewing will confirm in written about the transfer of the
agreement.

b. Franchisee cannot transfer the rights of this agreement to any third party without prior
approval from Franchisor.

c. Franchisor does not entitle to pay any amount to the Franchisee as part of transfer of
Franchise to another person/entity.

d. Franchisee has to discuss about fees with the new entity/person to whom this franchise
is transferred.

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 e. Upon death of Franchisee, this agreement would be transferred to the immediate family
members. Each such person has to again follow all the standards and policies as
mentioned in this agreement.

19. CONFIDENTIAL OPERATIONS MANUALS

a. In order to protect the reputation and goodwill of Franchisor and to maintain high
standards of operation under the Trade Marks, Franchisee shall conduct its Rollzone
outlet in accordance with the Manuals (which term shall include any and all manuals
and writings which the Franchisor furnishes or may furnish to Franchisee from time to
time concerning the System).

b. Franchisee hereby acknowledges that the Manuals currently consist of a series of

writings with respect to particular aspects of the establishment, construction and
methods of operation of a Rollzone outlet.

c. Franchisee acknowledges it will receive the Manuals on loan from Franchisor within one
(1) month of the Effective Date for the term of this Agreement and the Manuals would
be in printed format.

d. Franchisee shall at all times treat the Manuals, any other manuals created for or
approved for use in the operation of the Rollzone outlet and the information contained
therein as confidential, and shall use all reasonable efforts to maintain such information
as secret and confidential. Franchisee shall not at any time: copy, duplicate, record or
otherwise reproduce the foregoing materials, in whole or in part, nor otherwise make
the same available to any unauthorized person. If Franchisee copy/duplicates
confidential information to anyone, this Agreement stands terminated and Franchisee
agrees to pay 10 times of the Franchisee Fees to Franchisor for breaking the
Confidentiality trust.

e. The Manuals shall at all times remain the sole property of Franchisor.

f. Franchisor may from time to time revise the contents of the Manuals and Franchisee
expressly agrees to comply with each new or changed provision.

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20. CONFIDENTIAL INFORMATION

a. Franchisee shall not, during the term of this Agreement or thereafter, communicate,
divulge, or use for the benefit of any other person, partnership, association, or
corporation any confidential information, knowledge, or know how concerning the
System or the methods of operation of the Rollzone outlet and business which may be
communicated to Franchisee under this Agreement. Any and all information,
knowledge, and know how, including, without limitation, recipes, drawings, materials,
equipment specifications, techniques, and other data, which Franchisor designates as
confidential shall be deemed confidential for purposes of this Agreement.

b. Franchisee acknowledges that any failure to comply with the requirements of this
Section may cause Franchisor irreparable harm and injury for which money damages
would be and Franchisee agrees to pay all court costs and reasonable attorney’s fees
incurred by Franchisor in obtaining specific performance of, or any injunction against
violation of, the requirements of this Section.

c. It is understood and agreed that information or techniques prepared, compiled, or

developed by Franchisee, its employees or its agents during the term of this Agreement
and relating to the System, whether developed separately or in conjunction with
Franchisor, may, in Franchisor’s sole discretion, be considered as part of Franchisor’s
confidential and proprietary information and may, in Franchisor’s sole discretion, form a
part of the System. Any and all improvements to or modifications of the System,
whether developed, in whole or in part, by Franchisor, Franchisee or others shall be the
sole and exclusive property of Franchisor. If accepted by Franchisor, Franchisee may use
such improvements to or modifications of the System in the conduct of the Rollzone
outlets.

d. Franchisee agrees to all terms and conditions listed in this Agreement related to
Confidential information. In any such instance involving Franchisee in disclosure of any
Confidential information of Franchisor or Rollzone outlet business, would be considered
a serious crime and a legal lawsuit will be registered on the name of Franchisee;
Franchisee will also have to pay 10 times of Franchise fees to Franchisor for disclosing
the confidential information as a penalty. And in such instance, this Agreement stands
terminated.

21. AUTHORITY

Both the parties represent that they have the requisite authority to enter and sign this
agreement. The individuals signing this agreement represent that they are authorized signatories
of the parties.

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22. AMENDMENTS TO THIS AGREEMENT

Any variation to the terms and conditions of this Agreement shall be in writing and shall be
subject to mutual agreement between Parties on the varied scope and time lines.

23. APPLICABLE LAWS AND DISPUTE RESOLUTION

a. Both parties agree to co-operate and to conduct in good faith such discussions and
negotiations as may be necessary to amicably resolve any dispute which may arise
between them. If the parties are unable to resolve the dispute within thirty (30) days of a
meeting involving the parties’ senior representatives, then, either party may submit such
dispute to arbitration in accordance with the provisions of the Arbitration and Conciliation
Act, 1996, or any subsequent enactment or amendment thereof. The arbitration tribunal
shall be held in Hyderabad and shall consist of three arbitrators. Each of the parties shall
be entitled to appoint one arbitrator with the third arbitrator to be elected by the two
arbitrators appointed by the parties, who shall serve as the chairman of the tribunal. The
arbitration shall be conducted in English. The arbitral award will be final and binding upon
both parties. Judgment upon the award may be entered in any court of competent
jurisdiction for execution.

24. INDEMNITY

The franchisee shall indemnify the franchisor against any loss, cost or expense incurred by the
franchisor arising from any act, neglect or default of the franchisee, its agents, employees,
licensees or customers.

25. LIABILITY

The franchisor shall not be liable for any damage or claim arising in contract any claim against the
customer by the third party unless such damage or claim has arisen out of use of the product
directly supplied by the franchisor and as per the Manual (SOP) provided.

26
In case the dispute involves intellectual property, the franchisee shall notify the franchisor and
the franchisee shall not settle any dispute with any third party by admitting infringement of any
third party intellectual property right by any product or disclaiming any intellectual property right
of the franchisor, without the express return consent of the franchisor.

26. AGENCY

Nothing in this agreement shall be construed as making the parties partners or joint ventures or
render or any party liable for any of the debts of obligations of any other party. The franchisee is
not, shall not hold itself out as, the agent of the franchisor and under no circumstances shall be
franchisee have authority to bind the franchisor nor hold itself out to any third party as having
such authority.

27. FORCE MAJEURE

None of the parties in this agreement shall be responsible to any other party for any delay in
performance or non-performance due to force majeure, but the affected party shall promptly
upon the occurrence of any such cases inform the other parties in writing, stating that such cause
has delayed or prevented its performance hereunder and thereafter such party shall take all
action within its power to comply with the terms of this agreement as fully and promptly as
possible.

28. WAIVER & REMEDIES CUMULATIVE

 The rights of each party under this agreement: -

a. may be exercised as often as necessary;

b. Are cumulative and not exhaustive of its rights under common law; and

c. May be waived only in writing and specifically.

 Any delay in the exercise or the non-exercise of any right is a waiver of the right. Any
delay of rescission available to either party shall be in addition to and without prejudice
to all other rights and remedies available to it.

27
  The failure of any part at any time to enforce any of the Provisions of the agreement or
to excise any right under this agreement shall in no way affect that party‘s rights after any
failure or constitute a waiver of that right.

29. INTERPRETATION

The headings of the clauses are inserted for convenience only and does not affect the
construction of this agreement.

30. CONTINUING PROVISIONS

The termination of this agreement (for whatever reason) shall not terminate any provision which
is expressly or by implication provided to come into or continue in force after such termination
and shall be without prejudice to the accrued right and liabilities and other remedies of the
parties of this agreement.

31. SEVERABILITY

If any clause or paragraph of this agreement is held invalid or is otherwise unenforceable, the
reminder of the agreement shall not also be invalidated unless in the reasonable opinion of the
franchisor, the purpose of this agreement is frustrated as result.

32. ACCEPTANCE OF TERMS

Franchisee here by acknowledges and accepts that he/she has read all the terms and conditions
of this agreement. Franchisee also agrees to follow and comply with all the terms and conditions
mentioned in this agreement.

33. JURISDICTION

The rights and obligations of the Parties under, or pursuant to, this Clause, including the
arbitration agreement, shall be governed by and be subject to Indian law, and the agreement
shall be subject to Hyderabad jurisdiction.

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34. ENTIRE AGREEMENT

This agreement contains the entire agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior agreement, arrangement or understanding whether oral
or in writing.

IN WITNESS THERE OF, the parties have set their hands on the date, moth and year mentioned
above.

For R Cube Ventures FOR FRANCHISEE

___________________ ___________________

Authorized signatory Authorized signatory

Name: _______________________ _____________________

Authorized signatory
Designation: ____________________

WITNESSES:

WITNESS 1:

 Name:

_____________________

Authorized signatory

WITNESS 2:

 Name:

_____________________

Authorized signatory

29
ANNEXURE 1: FRANCHISEE’S DESIGNEE

Owners’ Name(s) Percentage of Ownership Interest

Name and Address of Franchisee’s Designee*

* The term “Franchisee’s Designee” means an individual who shall represent the Franchisee and
who: (a) shall have primary responsibility for managing and operating the business affairs of
Franchisee; (b) will have completed Franchisor’s training program to Franchisor’s satisfaction;
and (c) has the power and authority to bind Franchisee in all dealings with Franchisor, unless
Franchisee designates in writing another individual reasonably acceptable to Franchisor who has
the power and authority to so bind Franchisee.

Franchisee and each of its Owners represents and warrants that the above is a complete and
accurate list of all Owners of Franchisee, including the full name and mailing address of each
Owner, and fully describes the nature and extent of each Owner’s interest in the Franchise.
Franchisee and each Owner as to his or her ownership interest, represents and warrants that
each Owner is the sole and exclusive legal and beneficial owner of his or her ownership interest
in the Franchisee, free and clear of all liens, restrictions, agreements and encumbrances of any
kind or nature, other than those required or permitted by the Franchise Agreement.

For R Cube Ventures FOR FRANCHISEE

___________________ ___________________

Authorized signatory Authorized signatory

_____________________
Authorized signatory

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ANNEXURE 2: CONFIRMATION OF FRANCHISE OUTLET

Franchisee hereby confirms to “Franchisor” for the opening of a ROLLZONE Outlet at the location
identified below.

Proposed Location:

Opening Date: , 201_________

Lease Commencement Date: , 201_________

Lease Expiration Date: , 201_________

For R Cube Ventures FOR FRANCHISEE

___________________ ___________________

Authorized signatory Authorized signatory

_____________________

Authorized signatory

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ANNEXURE 3: MENU

The Products sold in ROLLZONE outlets may change from time to time. But, the main product line
would be:

 Rolls
 Kebabs
 Fries
 Beverages

Any such additions in the Menu, would be notified to the Franchisee.

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33
ANNEXURE 4: DETAILS OF FIRM/COMPANY

Firm/Company Name: _______________________________________________________

Partner/Director 1: _______________________________________________________

Partner/Director 2: _______________________________________________________

Partner/Director 3: _______________________________________________________

Partner/Director 4: _______________________________________________________

Firm/Company PAN Card: ____________________________________________________

Firm/Company GST: ____________________________________________________

34
ANNEXURE 5: FRANCHISEE OWNERS INFORMATION

All Partners/Directors of Franchise Firm/Company has to fill their respective information for all
the specified fields.

Partner/Director 1

Name: ____________________________________________________

Father’s name: _____________________________________________

PHOTO
Date of Birth: ___ ____ _______ (DD/MM/YYYY)

Address: _______________________________________________________________

Photograph

_______________________________________________________________

_______________________________________________________________

Email Id: __________________________________________

Mobile Number: __________________________________________

Alternate No: __________________________________________

Citizenship: __________________________________________

Marital Status: __________________________________________

Occupation: __________________________________________

Educational Qualification: __________________________________

If you are working for any company, please fill in below details:

Employer / Organization Period Designation Gross Annual

Name Salary
(In Lakhs)

35
If you own a business, please fill in below details:

Nature of Company Period Products/Services Annual

Business Name Turnover
(In Lakhs)

Financial Information:

Assets In Lakhs Liabilities In Lakhs

Cash in Hand Loans

House Accounts/Bills Payable
Stocks/Bonds/FD's Mortgages
Property (Current Value) Other Debts (Please mention)
Automotive(Vehicles)
Others (Please mention) Total Liabilities(B)

Total Assets(A) Net Worth(A-B)

Nominee Details:

Please provide details of 2 nominees below:

Name Occupation Relation Contact Details

I agree that above mentioned information is true to the best of my knowledge and I shall also
provide additional information if required.

Date: _____________ Signature: _____________

36
Partner/Director 2

Name: ____________________________________________________

Father’s name: _____________________________________________

PHOTO
Date of Birth: ___ ____ _______ (DD/MM/YYYY)

Address: _______________________________________________________________

Photograph
_______________________________________________________________

_______________________________________________________________

Email Id: __________________________________________

Mobile Number: __________________________________________

Alternate No: __________________________________________

Citizenship: __________________________________________

Marital Status: __________________________________________

Occupation: __________________________________________

Educational Qualification: __________________________________

If you are working for any company, please fill in below details:

Employer / Organization Period Designation Gross Annual

Name Salary
(In Lakhs)

37
If you own a business, please fill in below details:

Nature of Company Period Products/Services Annual

Business Name Turnover
(In Lakhs)

Financial Information:

Assets In Lakhs Liabilities In Lakhs

Cash in Hand Loans

House Accounts/Bills Payable
Stocks/Bonds/FD's Mortgages
Property (Current Value) Other Debts (Please mention)
Automotive(Vehicles)
Others (Please mention) Total Liabilities(B)

Total Assets(A) Net Worth(A-B)

Nominee Details:

Please provide details of 2 nominees below:

Name Occupation Relation Contact Details

I agree that above mentioned information is true to the best of my knowledge and I shall also
provide additional information if required.

Date: _____________ Signature: _____________

38
Partner/Director 3

Name: ____________________________________________________

Father’s name: _____________________________________________

PHOTO
Date of Birth: ___ ____ _______ (DD/MM/YYYY)

Address: _______________________________________________________________

Photograph

_______________________________________________________________

_______________________________________________________________

Email Id: __________________________________________

Mobile Number: __________________________________________

Alternate No: __________________________________________

Citizenship: __________________________________________

Marital Status: __________________________________________

Occupation: __________________________________________

Educational Qualification: __________________________________

If you are working for any company, please fill in below details:

Employer / Organization Period Designation Gross Annual

Name Salary
(In Lakhs)

39
If you own a business, please fill in below details:

Nature of Company Period Products/Services Annual

Business Name Turnover
(In Lakhs)

Financial Information:

Assets In Lakhs Liabilities In Lakhs

Cash in Hand Loans

House Accounts/Bills Payable
Stocks/Bonds/FD's Mortgages
Property (Current Value) Other Debts (Please mention)
Automotive(Vehicles)
Others (Please mention) Total Liabilities(B)

Total Assets(A) Net Worth(A-B)

Nominee Details:

Please provide details of 2 nominees below:

Name Occupation Relation Contact Details

I agree that above mentioned information is true to the best of my knowledge and I shall also
provide additional information if required.

Date: _____________ Signature: _____________

40
Partner/Director 4

Name: ____________________________________________________

Father’s name: _____________________________________________

PHOTO
Date of Birth: ___ ____ _______ (DD/MM/YYYY)

Address: _______________________________________________________________

Photograph
_______________________________________________________________

_______________________________________________________________

Email Id: __________________________________________

Mobile Number: __________________________________________

Alternate No: __________________________________________

Citizenship: __________________________________________

Marital Status: __________________________________________

Occupation: __________________________________________

Educational Qualification: __________________________________

If you are working for any company, please fill in below details:

Employer / Organization Period Designation Gross Annual

Name Salary
(In Lakhs)

41
If you own a business, please fill in below details:

Nature of Company Period Products/Services Annual

Business Name Turnover
(In Lakhs)

Financial Information:

Assets In Lakhs Liabilities In Lakhs

Cash in Hand Loans

House Accounts/Bills Payable
Stocks/Bonds/FD's Mortgages
Property (Current Value) Other Debts (Please mention)
Automotive(Vehicles)
Others (Please mention) Total Liabilities(B)

Total Assets(A) Net Worth(A-B)

Nominee Details:

Please provide details of 2 nominees below:

Name Occupation Relation Contact Details

I agree that above mentioned information is true to the best of my knowledge and I shall also
provide additional information if required.

Date: _____________ Signature: _____________

42
ANNEXURE 6: SUPPORTING DOCUMENTS

Please sign and attach all the following documents along with this Agreement:

 Firm/Company Registration Certificate

 Firm/Company PAN Card
 Firm/Company GST
 All Partners/Directors: ID Proof, Address Proof
 Office Address proof
 Bank Account Documents

43