The document outlines the terms and conditions of an agreement between a company and a franchisee to open a coffee shop called "Beans by bonsaii". Key points include: a one-time franchise fee covers 9 years of using the brand name; the company will transfer goods for immediate payment and the franchisee cannot source from elsewhere; the franchisee will receive 90% of margins to cover expenses; the company provides store designs and supplies while the franchisee pays freight and taxes.

1. Modus Operandi and terms & conditions between our company and our franchisee
● One time franchisee fees would cover 9 years use of our brand name.
● The name of the shop would be “Beans”. Added taglines will be “by bonsaii” and “small sizes …
big attitudes”
● We will transfer goods to the franchisee on an outright sales basis. Payments will be immediate
against proforma invoice.
● The franchisee is not allowed to buy from any other source.
● It will be our responsibility to offer the franchisee maximum margins available in the market.
● On an average, 90% of the margins will be transferred to the franchisee to take care of his real
estate costs, finance costs and other operating expenses.
● We will offer goods reshuffling to the extent of 1.5% of sales. This will be done every quarter
provided goods are in resalable condition.
● We will provide all designs related to store layout, merchandise display, lights layout, a/c
ducting, etc. Display fixtures will be supplied by our approved vendor. Execution of all interior
work will be done by us or by the franchisee whosoever can get it done at a lower cost provided
the quality norms laid down by us are satisfied.
● We will either supply the goods from our central warehouse in Nagpur or from our vendors’
warehouse – with whom we have logistics tie up as a door delivery to the franchisee store. The
freight costs, octroi, and any other municipal taxes will be borne by the franchisee. We will work
on the logistics continuously to ensure cost effective supplies to the franchisee.
● The franchisee will be provided a user name and password to login into our web site where they
can see all the product photos, description, cost, MRP, etc. and place their orders.
● Opening another franchisee in a locality / city where an existing franchisee is operating will be
a matter of discussion with the respective franchisee. It will be a subjective decision depending
upon the location, size, etc. of the existing and upcoming store. However, we will offer the right
of first refusal to the existing franchisee in case we open an additional store in the same city /
locality.