Hungru Pizza

About Us:

We are in the business of franchising retail outletsspecializing in the sale of pizza and other food andbeverage products .These outlets are known asHUNGRU PIZZA stores and conduct business under auniform business format, with specially designedequipment designated by HUNGRU PIZZA directors.You have applied to us for a franchise to operate aHUNGRU PIZZA Store at the location identified in thisAgreement. Your application has been approved by uswith respect to all the representations made in yourapplication including those concerning your financialresources, your other investments and interests and themanner in which the franchise will be owned andoperated.You acknowledge that you have read this Agreementand our Franchise disclosure Document and been givenan opportunity to obtain clarification of any provision thatyou did not understand. Youalso understand and agree that theterms and conditionscontained in this Agreement are necessary to maintain our high standardsof quality and service and the uniformity of thosestandards at all Hungru Pizza Outlets. GRANT AND TERM OF FRANCHISE rantSubject to the terms of this Agreement, HPFgrants to you a franchise to operate a Hungru PizzaOutlet (the Store) under the rules and regulation ofHungru Pizza to operate the Store at the followinglocation: Located At

Term of Franchise

The term of this Agreement shall be for a period ofone (1) year , commencing on the date of opening of theStore (or if this Agreement is being signed in connectionwith a renewal or transfer of the franchise, commencingon the day following the expiration or termination of theprevious franchise agreement, as the case may be).

FRANCHISE FEE:

Franchise fee is Rs 2.5 lakhs which includes billingsoftware, training, uniform pizza machine.

RENEWAL OF FRANCHISE (after 3 years)Franchise will be renewed by the Board Of Directorsof HUNGRU PIZZA with respect to last year performanceon account of sales, customer feedback, customer rating,manner discipline, quality, etc Renewal charges will be Rs 2.5 lakhs (for next

3years) as decided by Hungru Pizzas Board Of Directorsduring the time of renewal.

** renewal charges may vary according to the market

value

ROYALITY FEES AND OTHER CHARGES

Amount and Payment

During the term of the franchise, you agree to pay us

a royalty fee of five percent (5%) of the monthly royalty

sales of the Store. This fee must be paid by last day of

each month on royalty sales for the month .Payment must

be made by electronic funds transfer as provided .

Definition of Royalty Sales

The term royalty sales means the total receipts

from all sales by the Store of all pizza, beverages and

other products or services authorized for sale at the Store

or at any approved off-site location but exclusive of sales

or equivalent taxes, coupon and

similar discounts, and

beverage container

deposits approved by us.Premium or similar promotional items must be included in

computing royalty sales unless these items have been

sold at or below cost by the Store. Premium or similar

promotional items shall not be deemed to include any food

or beverage item unless otherwise specified by us.

Interest on Late Payments

All royalty fees, advertising contributions and all other

amounts owed to us pursuant to this Agreement will bear

interest after the due date at the rate of one percent (1 %)

per week or at the highest legal rate for open account

business credit in the state in which the Store is located,

which ever is lower.

Electronic Funds Transfer

Royalty fees must be paid by electronic fund transfer ,

national fund transfer process or by cash deposit to the

business account of HUNGRU PIZZA.

STORE LOCATION

Location and Use

You may operate the Store only at the specified

location mentioned above and you may not relocate the

Store except with our prior written consent. The Store may

only be used for the operation of a Hungru Pizza Outlet

and other related activities approved by us in writing. You

shall not allow the premises of the Store to be used for

any immoral or illegal purpose that may bring disrespect to

Hungru Pizza which is in out judgement , adversely affects

the reputation of the store or the

goodwill associated with Hungru

Pizza or involves

dishonesty , fraud, deceit, illegal conduct, misrepresentation, or moral turpitude.

STORE DEVELOPMENT

Development and Construction

You agree that promptly after obtaining possession of

the site for the Store you will:

(a) cause to be prepared and submit for

approval by us a site plan and any modifications to

our basic architectural plans and specifications for

the Store, including requirements for dimensions,

exterior design, materials, interior layout, equipment,

fixtures, furniture, signs, and decorating. You

understand that you may modify our basic plans and

specifications only to the extent required to comply

with applicable ordinances, building codes and permit

requirements and only with our prior written approval;

(b) obtain all required zoning changes; all

required building, driveway, utility, health, sanitation,

and sign permits and any other required permits;

(c) purchase or lease fixtures, furniture and

signs meeting our specifications or requirements and,

if we so require, from an approved vendor or vendors

designated by us;

(d) complete the construction and/or

remodeling, equipment, fixture, furniture and sign

installation and decorating of the Store in full and

strict compliance with plans and specifications

approved by us and all applicable ordinances,

building codes and permit

requirements;

(e) obtain all

customary contractors sworn statements and partial and final waivers of lien for

construction, remodeling, decorating and installation

services; and,

(f) fully investigate and become familiar with

the Stores delivery area and its

boundaries.

Equipment, Fixtures, Furniture and Signs

We will provide you with specifications for pizza,

other authorized food and beverage preparation,

dispensing, storage and display equipment, other

equipment, fixtures, furniture, exterior and interior signs

and decorating that we require you to use or install in the

Store. We may specify brands, types or models for any of

these items. You may purchase items meeting our

specifications from any source unless we designate an

approved source or sources for any of these items. If you

propose to purchase or lease items not previously

approved by us as meeting our specifications or from a

vendor not approved by us, you must first notify us and we

may require submission of sufficient specifications,

photographs, drawings and/or other information and

samples to determine whether any such item or supplier

meets our specifications or our approved vendor criteria.

We will advise you within a reasonable time whether any

proposed item or vendor meets our specifications or our

approved vendor criteria. You agree to use only such

items that meet our specifications in the operation of the

Store and to purchase them from approved vendors, if we

so require. You understand, however, that we or our

affiliates or an approved vendor

may be the only source for some

of these items and that we may

otherwise limit the number of approved vendors. We reserve the right to charge you for

our reasonable expenses in testing and/or evaluating any

proposed item or vendor submitted by you. Store Opening

You agree to complete development of the Store

and have the Store ready to open within a reasonable

time after obtaining possession of the site for the Store. If

you do not open the Store within six (6) months from the

effective date of this Agreement, we will have the option

to terminate this Agreement upon the giving of written

notice to you.

OPENING ADVERTISING AND PROMOTION

EXPENDITURE

If you (or the Controlling Person if you are an

Approved Entity) are opening your (or his or her) first

Hungru Pizza Outlet, you must submit to us proof no later

than thirty (30) days after opening of the Store that you

have done digital marketing / offline promotions etc.

TRAINING

Training of Employees will be provide by HUNGRU

PIZZA without any charges till your employee is fully

trained.

OPERATING ASSISTANCE

We will furnish you with such reasonable operating

assistance as we determine from time to time to be

necessary for the operation of the

Store. Operating

assistance will include advice

and guidance regarding:

(a) methods of pizza, other authorized food

and beverage preparation, packaging and sale; and

(b) the establishment of administrative,

bookkeeping, accounting, inventory control and

general operating procedures.

You acknowledge and understand that it is not our

responsibility or duty to operate the Store and we do not

have the legal right to direct your employees in the

operation of the Store. Those functions remain your sole

responsibility and duty. Further, you understand that the

assistance provided to you under this does not obligate us

to provide the accounting, bookkeeping , administrative,

inventory control or marketing services required for the

operation of the Store or to otherwise operate the Store.

By providing advice or suggestions, we do not assume

any of your responsibilities or duties.

STORE PRODUCT

Store Menu

You agree that you will offer for sale and sell at the

Store for final consumption and not for resale, all pizza

and other authorized food and beverage products and

perform the carry- out that we from time to time authorize;

provided, however, you may offer for resale authorized

products for certain programs approved by us. Such

approval will not be unreasonably withheld and the

decision to approve shall be based upon: (i) quality

assurance; (ii)brand image; (iii) and such other factors as

we determine. You also agree that you will not offer for

sale or sell at the Store any other products or services.

Pizza Ingredients,

Supplies and Materials

Pizza Ingredients (dough powder with yeast, pizza sauce,

liquid cheese, solid cheese,oregano, chilli flakes, pouch

sauce, tissue paper, pizza box, aluminium foil, mocktail

glass , mocktail syrups, carry bag, straw ) will be supplied

by us for quality purpose. And if any of this products are

bought from outside then it may lead to the termination of

the contract or fine may be imposed.

Other ingredients like vegetables, milk, fish, chicken, egg,

paneer, mushroom, polo, cold drinks etc you can buy

from local market or any other supplier.

ADVERTISING AND PROMOTION

Advertising and promotion must be conducted from your

side and must be informed/reported to Hungru Pizza

before and after conducting such program.

RECORDS AND REPORTS

Records of all customers/ sale/ discounts/purchase must

be maintained on daily basis and must be kept ready for

audit.

RIGHT TO AUDIT

We reserve the right to audit the sales reports, financial

statements, tax returns, information from the Stores

computer system, and any other records you are required

to retain or submit to us. In the

event any audit discloses an

understatement of the royalty

sales of the Store for any period or periods. Audit will be done from the side of Hungru

Pizza anytime without any prior notice within working hour.

OPERATING REQUIREMENTS

Operating Procedures

You agree to fully comply with all specifications,

standards and operating procedures and rules from time

to time prescribed for the operation of a Hungru Pizza

Outlet, including, but not limited to, specifications,

standards and operating procedures and rules relating to:

(a) the safety, maintenance, cleanliness,

sanitation, function and appearance of the Store

premises and its equipment, image, fixtures,

furniture, decor and signs;

(b) qualifications, dress, grooming, general

appearance and demeanor of you and your

employees including, but not limited to, engaging in

any conduct which, in our judgment, adversely

affects the reputation of the Store or the Hungru

Pizza or the goodwill associated with the involves

dishonesty, fraud, deceit, illegal conduct,

misrepresentation or moral turpitude

(c) quality, taste, portion control and

uniformity, and manner of storage, preparation and

sale, of all pizza and other authorized food and

beverage products sold by the Store and of all

ingredients, supplies and materials used in the

storage, preparation, packaging and sale of these

items;

(d) methods and

procedures relating to

receiving, preparing, and delivering and storing customer orders, including

without limitation, online ordering;

(e) the hours during which the Store will be

open for business;

(f) use and illumination of exterior and interior

signs, posters, displays, menu boards and similar

items;

(g) the handling of customer complaints;

(h) advertising on the Internet or other

electronic media, including websites, home pages

and the use of domain names;

(i) e-mail capabilities of the Store and other

electronic communication methods (including high

speed broadband connectivity, high speed

broadband monitoring, and methods and means of

encryption and access to our network resources) and

devices to facilitate communication with us or our

offices, including the exchange of information

between the Store and us; and,

(j) the method and manner of payment

which will be accepted from

customers.

By entering into this Agreement, you agree to abide

by these specifications, standards, operating procedures

and rules and to fully adopt and implement them.

Compliance with Laws and Other Business

Practices

You agree to secure and

maintain in force all

required licenses, permits and certificates and operate the Store in full compliance with

all applicable laws, ordinances and regulations. You also

agree to pay when due all amounts payable pursuant to

any provision of this Agreement or any other agreement

with us or our affiliates or subsidiaries or pursuant to any

agreement with any other creditor or supplier of the Store.

You shall file all tax returns and pay all taxes before they

become delinquent. You agree not to permit any levy or

warrant to be issued by any taxing authority or other

creditor, (excluding mechanics liens and other immaterial

liens), against any of your assets, nor allow any of your

assets to be seized or frozen by any taxing authority or

other creditor. Furthermore, if you are subject to any

withholding taxes on royalty fees or other payments due,

you shall provide us with quarterly evidence that such tax

has been remitted to the appropriate governmental

agency on a quarterly basis.

You agree to abide by the Payment Card Industry Data

Security Standards enacted by the applicable Card

Associations, applicable to your business. If you know or

suspect a security breach, you shall immediately notify us.

You shall promptly identify and remediate the source of

the compromise. You assume all responsibility for

providing all notices of breach or compromise and all

duties to monitor credit histories and transactions

concerning your customers. Without limiting the generality

of other provisions of this Agreement, you agree to

defend, indemnify and hold us and our affiliates harmless

from and against any and all claims, demands, duties,

obligations, damages, fines and/or penalties imposed

upon you as a result of non-compliance with the Payment

Card Industry requirements.

NEW CONCEPTS

If you develop any new

concept, process or improvement or any slogan in the operation or promotion

of the Store, or technology used in connection with the

operation of the Store, you agree to promptly notify us and

provide us with all necessary information without

compensation. You acknowledge that any such concept,

process, improvement or slogan shall become our

property and that we may utilize or disclose this

information to our affiliates and other franchisees.

INSPECTIONS

We or our designee will have the right at any time

during business hours and without

prior notice to conduct reasonable inspections of the

Store, its operations and its business records, including,

but not limited to, information from the Stores computers,

and records and documents relating to the ownership and

control of the Approved Entity and any other entity that

has an interest in the operation of the Store, wherever

located and to take a physical inventory of the assets of

the Store. You agree that we may conduct all or part of an

inspection, either on-site or from a remote location.

Inspections of the Store will be made at our expense,

unless we are required to make any additional inspections

in connection with your failure to comply with this

Agreement. In such event, we will have the right to charge

you for the costs of making all additional inspections in

connection with your failure to comply, including without

limitation the travel expenses, room and board and

compensation of our or our designees employees. You

and your owners agree to fully comply and cooperate with

any and all inspections, including, but not limited to, you,

your owners and your employees treating our personnel in

a professional manner.

TERMINATION

We shall have the right to terminate this Agreement effective upon delivery of notice

of termination to you, if:

(a) you or any of your owners have made any

material misrepresentation on any record or report

required by us under this Agreement or on your

application for the franchise, or in any other

application submitted to us;

(b) you do not open the Store within six (6)

months from the date of this Agreement

(c) you or any of your owners is judged a

bankrupt, becomes insolvent, makes an assignment

for the benefit of creditors, is unable to pay his or her

debts as they become due, or a petition under any

bankruptcy law is filed against you or any of your

owners or a receiver or other custodian is appointed

for a substantial part of the assets of the Store;

(d) you abandon or fail to continuously and

actively operate the Store, or, without our prior

written consent, permit any person other than a

qualified employee designated by you, whose identity

has been disclosed to us, to operate the Store in your

absence;

(e) the lease or sublease for the Store is

terminated or cancelled or you are unable to renew

or extend the lease or sublease or you fail to

maintain possession of the

Store premises unless you are permitted to relocate

the Store

(f) you or any of your

owners is convicted of a

felony, or a crime which

substantially impairs the goodwill associated with the Marks or you or any of

your owners engages in any conduct which, in our

judgment, adversely affects the reputation of the

Store or the HUNGRU PIZZA or the goodwill

associated or involves dishonesty, fraud, deceit,

illegal conduct or misrepresentation or moral

turpitude;

(g) you intentionally or negligently under-

report the royalty sales of the Store for any period or

periods;

(h) you or any of your owners violates any of

the restrictions contained above

(i) you intentionally or on more than one

occasion during the term of this Agreement, violate

any Child Labor Laws in connection with your

operation of the Store;

(j) an audit by us discloses an

understatement of royalty sales and you fail to pay to

us the applicable royalty fee and advertising

contribution and interest due within ten (10) days

after receipt of the final audit report;

(k) the interest of a deceased or permanently

disabled person is not disposed of in accordance with

the terms of this Agreement;

(l) you or any of your owners fail on three (3)

or more occasions during any twelve (12) month

period to comply with any one or more provisions of

this agreement any franchise agreement for the Store

(which includes not only

this Agreement but also

the franchise

agreement in force immediately prior to this Agreement if this Agreement

has been in effect for less than twelve (12) months)

including without limitation, your obligation to submit

when due, sales reports or financial statements, to

pay when due the royalty fees, advertising

contributions or other payments to us or our affiliates

or subsidiaries or any other creditors or suppliers of

the Store, whether or not such failure to comply is

corrected after notice is delivered to you;

(m) any of your assets or items used in the

operation of the Store are seized or you are

otherwise denied the use of the property or access to

the Store because of your failure to pay any taxing

authority or any amount due a creditor of the Store,

or because of any other act or omission of you or any

of your owners; or, you fail to notify us of a tax levy or

delinquency; or

(n) you fail to cease operating the Store, or fail

to correct the conditions in the Store causing a

present threat of imminent danger to public health or

safety, after notice to you as provided above.

Effective Date of this Agreement

This Agreement shall become effective upon the date

of its acceptance and execution by us.

HUNGRU PIZZA BOARD OF DIRECTORS OUTLET