Vedant Fashions Pvt Ltd (VFPL) - Franchise Terms 29.

5%

Description 29.5% Franchise Terms

Property (Showroom) Can be Owned / Leased by the Franchise or Leased by VFPL

Billing Terms, if sold If the store is owned / leased by franchise, materials will be send to Franchise on SOR basis as
MRP - 29.5% + GST+ 0.1% insurance. (billing term may vary as per company Discretion)

It may be noted here that the commission/margin as above will be applicable on materials produced by VFPL. However the commission/margin will
be variable for items outsourced by VFPL which is 23.5%+GST at present but subject to change in future.

Property should be owned/leased by Franchise. If property leased by Company, Franchise to reimburse the Deposit paid
by the Company to the Lessor.
Interior Designing Fees (In case of Mall - min Rs.30,000/- or Rs. 50 per sq ft) & (In case of High Street store - min
Rs.30,000/- or Rs. 40 per sq ft)
Cost Of Interiors and Furnitures- approx cost between Rs 2000-2200/- per sq ft. (in case of store in Malls) and between Rs
Investment of Franchisee 1800-2200/- per sqft (in case of High Street store), depending upon the location & area of store (other than cost of below
mentioned)

Cost of Civil Work if any, Signage, Mannequines, AC, Computer, Software, CCTV, Fire Extinguisher and Power Backup

Interest free stock deposit of Rs. 20 Lacs or 50% of Stock value, whichever is higher. The Stock Deposit amount shall be
reviewed quarterly as per the MRP Value of Closing Stock.

Insurance of stock and assets from the day of store opening

Rent, Electricity, Salary, Credit Card commission and all other day to day expenses for running and maintenance of the
shop including Insurance (of Stock & Furniure/Fixtures) and any other expenses not mentioned elsewhere.
Expenses of Franchisee All taxes as applicable viz GST
Store specific advertisement will be done by the Franchise as per the creatives provided by VFPL
Shortage or Pilferage of Stock and damage of property of VFPL.

Transportation cost
Expenses of VFPL All expenses related to national & city specific Ad campaign will be borne by VFPL.
All expenses other than above will be on account of Franchise only.

The entire Sale proceeds of the Shop needs to be deposited in the Company designated bank account twice in a week. (it
Payment method is subject to changes from time to time due to change in the Company Policy)

Security Deposit 6 cheques undated signed to be maintained by the Franchisee with VFPL as Security for compliance of terms.

Ensure Strict compliance of all statutory laws / requirement including obtaining all licences and certificate under the
applicable laws.
Obtain prior approval from VFPL in respect of staffs appointed in the Shop.
Ensure to follow strictly other rules and regulation as well as processes in respect of day to day operation of the shop as
Standard Rules and provided by VFPl from time to time.
Regulation to be followed
by Franchisee Franchise will use the POS software arranged by VFPL for selling the products. Manual billing is strictly restricted.

Ensure to conduct a monthly physical stock audit as per the process of VFPL

Stock is dispatched before store opening post completion of the given formalities- 1) Franchise Agreement 2) Stock
Deposit 3) Blank Cheques 4) Approval on Interior work from VFPL's architect

Franchise will not be entitled to keep any merchandise other than the merchandise of VFPL in the Shop.
Franchise will not be eligible to carry out any business other than selling the product of VFPL from the shop nor can start
the business of ethnic wear of his own from elsewhere.
In case the franchise violate the above terms and condition, a penalty of Rs. 5,00,000/- will be imposed on the franchise
Restriction on Franchisee and VFPL will also be authorised to terminating the agreement.
In case sale proceeds of previous week is not deposited by next Tuesday, a penalty of Rs. 10,000/- per day would be
charged.
If the store has to remain close for any reason, the same should be with prior approval of the Company in writing failing
which a sum of Rs. 5,000/- or fixed cost of one day of the shop will be debited.
Terms and conditions mentioned in the sheet are subject to change from time to time due to change in the Poilcy of the Company.