Franchisee definition.

A PayNback franchisee is an independent person(s), business owner or a freelancer who supports or canvassing, spreads the franchiser businesses to public. Their primary objective is to expand the franchisor's network by recruiting/onboarding a maximum number of merchants within a specified timeframe. This involves implementing effective marketing strategies, building strong relationships with potential merchants, and providing exceptional customer service. To support these efforts, the franchisor offers comprehensive training, ongoing support, and access to proven business systems and resources.

Financial obligations: Franchisees typically invest a significant amount of capital to purchase a franchise and meet ongoing operational costs.

Operational independence: While franchisees follow the franchisor's system, they also have autonomy in managing their day-to-day operations.

Shared risk and reward: Both the franchisor and franchisee share the risks and rewards of the business.

Brand representation:Franchisees are responsible for maintaining the franchisor's brand image and reputation.

Contractual agreements: The relationship between the franchisor and franchisee is governed by the terms and conditions outlined herein and all applicable laws governing this business.

Performance metrics: Franchisees are often evaluated based on key performance indicators (KPIs) set by the franchisor.

1. Grant of Franchise

a. The Franchisor grants the Franchisee a non-exclusive right to operate a franchise business under the Franchisor's trade name, trademarks, and service marks (collectively, the "Marks") within the exclusive territory designated as either Block Panchayaths, Districts, or as mutually agreed upon (the "Territory").

2. Franchise Commission

a.The Franchisee shall be entitled to a commission of 0.5% of the total income generated by businesses brought on board by the Franchisee within the Territory.

b. The Franchisor shall provide the Franchisee with monthly statements detailing the income generated by the Franchisee’s businesses and the corresponding commission due.

3. Referral Bonuses and Incentives

a. The Franchisee is entitled to additional bonuses or commissions for referring customers to the Franchisor's platform, like the referral bonuses and incentives offered to platform users.

b. The Franchisee may be eligible for additional bonuses based on the performance of public advertisements referred by the Franchisee, subject to specific conditions.

c. The Franchisee is entitled to participate in the Franchisor's incentive programs, which may include but are not limited to festival bonuses, quarterly gifts, and pleasure trips for the Franchisee and their family.

4. Obligations of the Franchisee

a. The Franchisee shall operate the franchise business in strict accordance with the Franchisor’s operating manual, policies, and procedures.

b. The Franchisee shall maintain accurate records of all franchise business activities and make such records available to the Franchisor upon request.

c. The Franchisee shall use its best efforts to promote the Franchisor’s brand and services within the Territory.

5. Term and Termination

a. The initial term of this Agreement shall be 3 (Three) years, commencing on the date of execution.

b. Either party may terminate this Agreement for cause upon 30 days’ written notice to the other party.

c. Upon termination of this Agreement, the Franchisee shall cease using the Franchisor’s Marks and return all confidential information and materials to the Franchisor.

6. Indemnification

a. The Franchisee shall indemnify and hold harmless the Franchisor from and against all claims, damages, liabilities, and expenses arising out of the Franchisee’s operation of the franchise business.

7. Governing Law

a.This Agreement shall be governed by and construed in accordance with the laws of the State of Kerala, India.