Hungru Pizza Franchise Cost – How to get, Contact, Apply, Fee

About Us:

We are in the business of franchising retail outlets specializing in the sale of pizza and other food and beverage products .These outlets are known as “HUNGRU PIZZA” stores and conduct business under a uniform business format, with specially designed equipment designated by HUNGRU PIZZA directors.You have applied to us for a franchise to operate a HUNGRU PIZZA Store at the location identified in this Agreement. Your application has been approved by us with respect to all the representations made in your application including those concerning your financial resources, your other investments and interests and the manner in which the franchise will be owned and operated.You acknowledge that you have read this Agreement and our Franchise disclosure Document and been given an opportunity to obtain clarification of any provision that you did not understand. You also understand and agree that the terms and conditions contained in this Agreement are necessary to maintain our high standards of quality and service and the uniformity of those standards at all Hungru Pizza Outlets. GRANT AND TERM OF FRANCHISE rantSubject to the terms of this Agreement, HPF grants to you a franchise to operate a Hungru Pizza Outlet (the “Store”) under the rules and regulation of Hungru Pizza to operate the Store at the following location: Located At 

Term of Franchise

The term of this Agreement shall be for a period of one (1) year , commencing on the date of opening of the Store (or if this Agreement is being signed in connection with a renewal or transfer of the franchise, commencing on the day following the expiration or termination of the previous franchise agreement, as the case may be).

FRANCHISE FEE:

Franchise fee is Rs 2.5 lakhs which includes billing software, training, uniform & pizza machine.

RENEWAL OF FRANCHISE (after 3 years)Franchise will be renewed by the Board Of Directors of HUNGRU PIZZA with respect to last year performance on 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 Pizza’s Board Of Directors during 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 Store’s 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 Store’s 

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 Store’s 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 designee’s 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