2.1 Franchise Fee

The franchise fee is a one-time, non-refundable payment that grants the franchisee the right to use the Chennai Maratha brand, systems, and intellectual property for the agreed franchise term. The applicable fee varies by outlet format as outlined below

2.1 Franchise Fee

Franchisees shall pay a monthly royalty fee calculated as a percentage of Gross Monthly Revenue (GMR). Royalty is payable by the 10th of each subsequent month, accompanied by a revenue report certified by the franchisee.

The following additional fees may apply during the franchise term:

• Technology & POS System Fee: Rs. 15,000 per year for the integrated ordering and reporting platform
• Training Fee: Included for initial setup; Rs. 25,000 for additional staff batches beyond the agreed quota
• Renewal Processing Fee: Rs. 1,00,000 per renewal term
• Audit Fee: Covered by the franchisor for scheduled audits; unscheduled audits may attract Rs. 10,000
• Marketing Material Procurement: At cost, sourced through approved vendors only

3.1 Defined Territory

Upon execution of the Franchise Agreement, the franchisee shall be granted exclusive rights to operate within a defined territory as mutually agreed and documented in Schedule A of the Franchise Agreement. The Territory shall be defined by specific pin codes, city zones, or municipal boundaries.

3.2 Exclusivity Provisions

Chennai Maratha guarantees the following exclusivity provisions within the approved Territory:

• The franchisor shall not grant another franchise licence for an identical format within the defined Territory during the active franchise term.
• Exclusivity applies only to the specific format licensed. A Dine-In franchisee does not automatically hold exclusivity over a Delivery Kitchen format in the same territory unless separately agreed.
• Multi-Format franchisees shall enjoy exclusivity across both Dine-In and Delivery operations within the defined Territory.

3.3 Territory Performance Conditions

Exclusivity rights are subject to the franchisee maintaining the following performance benchmarks:

• Achieving a minimum of 80% of mutually agreed revenue targets in each calendar year
• Maintaining an average customer satisfaction score of 4.0 or above on approved review platforms
• Remaining in full compliance with all brand standards, hygiene protocols, and operational guidelines

Failure to meet the above conditions may result in the franchisor introducing additional outlets within the Territory after providing 60 days written notice to the franchisee.

3.4 No Sub-Franchising

The franchisee is expressly prohibited from sub-franchising, sub-licensing, or assigning any territorial or operational rights to a third party without prior written approval from the franchisor. Any unauthorised assignment shall constitute a material breach of this Agreement.

4.1 Pre-Opening Training Programme

All franchisees and their designated staff are required to complete Chennai Maratha’s mandatory pre-opening training before commencing operations. Training covers the following modules:

• Brand Philosophy, Culture & Customer Service Standards (2 days)
• Menu Knowledge, Recipe Standardisation & Food Preparation (3 days)
• Kitchen Operations, Hygiene & FSSAI Compliance (2 days)
• Delivery Operations, Packaging Standards & Aggregator Integration (1 day – applicable for Delivery and Multi-Format)
• POS System, Inventory Management & Reporting Tools (1 day)
• Marketing, Social Media & Local Promotions (1 day)

Total mandatory pre-opening training duration is 10 days, conducted at a Chennai Maratha designated training centre or at the outlet depending on format and readiness

4.2 Ongoing Support

Post-opening, the franchisor shall provide the following ongoing support to all franchise partners:

• Dedicated Franchise Support Manager assigned to each outlet
• Monthly operations review call and quarterly in-person visit by the area manager
• Access to the Chennai Maratha Franchisee Portal with updated SOPs, marketing assets, and training materials
• New menu launches and seasonal promotions shared 2 weeks prior to rollout
• Priority support via WhatsApp helpdesk with response within 4 business hours

4.3 Technology Support

The franchisor provides and maintains the brand’s integrated technology ecosystem, which includes:

• Cloud-based POS integrated with Swiggy, Zomato, and other approved aggregators
• Real-time inventory and wastage tracking dashboard
• Customer feedback and CRM tools
• Monthly automated revenue and royalty reports accessible to both parties

5.1 Food Quality & Recipe Compliance

The franchisee must strictly adhere to Chennai Maratha’s standardised recipes, plating guidelines, and approved ingredient specifications. Any deviation from the approved menu or presentation is prohibited without prior written consent from the franchisor’s culinary team.

• All core ingredients must be sourced exclusively from Chennai Maratha’s approved vendor list.
• Local sourcing of fresh produce is permitted from vendors meeting quality specifications provided by the franchisor.
• Any new menu items or local specials must receive written sign-off before being added to the menu.

5.2 Hygiene & Food Safety

The franchisee is responsible for maintaining full compliance with FSSAI regulations, local municipal health guidelines, and Chennai Maratha’s internal hygiene standards. This includes:

• Valid and current FSSAI licence displayed at the outlet at all times
• Monthly internal hygiene self-audit using the franchisor’s checklist
• Pest control certification renewed at least once every six months
• All staff to maintain food handler certificates and undergo annual hygiene training

5.3 Brand Identity & Ambience Standards

Throughout the term of the Agreement, the franchisee agrees to:

• Operate the outlet exclusively under the Chennai Maratha brand and approved formats
• Pay all fees, royalties, and contributions punctually as per the agreed schedule
• Maintain all licences, registrations, and statutory compliances relevant to the business
• Not engage in a competing food and beverage business of a similar nature within the Territory during the term and for 12 months post-termination
• Report accurate revenue figures and provide access to financial records upon request

5.4 Audits & Inspections

The franchisor reserves the right to conduct scheduled and unannounced quality audits of any franchised outlet. Audits assess food quality, hygiene compliance, brand standards, customer experience, and financial reporting accuracy. Franchisees scoring below 70 out of 100 will receive a Corrective Action Notice with a 30-day remediation period.

6.1 Initial Term

The Franchise Agreement shall be valid for an initial period of five (5) years from the date of signing, unless terminated earlier in accordance with the provisions set out herein.

6.2 Obligations of the Franchisee

Throughout the term of the Agreement, the franchisee agrees to:

• Operate the outlet exclusively under the Chennai Maratha brand and approved formats
• Pay all fees, royalties, and contributions punctually as per the agreed schedule
• Maintain all licences, registrations, and statutory compliances relevant to the business
• Not engage in a competing food and beverage business of a similar nature within the Territory during the term and for 12 months post-termination
• Report accurate revenue figures and provide access to financial records upon request

6.3 Grounds for Termination by Franchise

The franchisor may terminate the Franchise Agreement with immediate effect upon written notice in the event of:

• Fraudulent or misrepresentative conduct by the franchisee
• Non-payment of franchise fees, royalties, or dues for more than 45 consecutive days
• Serious breach of food safety regulations resulting in a public health incident
• Repeated failure to comply with brand standards after issuance of two Corrective Action Notices
• Voluntary or involuntary insolvency, bankruptcy, or winding-up of the franchisee entity
• Unauthorised transfer, sub-franchise, or assignment of rights

6.4 Termination by Franchisee

The franchisee may terminate the Agreement by providing a minimum of 90 days written notice to the franchisor. The following conditions apply upon franchisee-initiated termination:

• The franchise fee is non-refundable under all circumstances
• All outstanding royalties, dues, and liabilities must be settled in full before the termination date
• The franchisee must cease all use of Chennai Maratha’s branding, trademarks, and intellectual property upon the effective termination date
• De-branding of the outlet must be completed within 15 days of the termination date

7.1 Renewal Process

Franchisees wishing to renew their Agreement must notify the franchisor in writing no later than 120 days before the expiry of the current term. Renewal is not automatic and is subject to the following conditions:

• The franchisee must be in good standing with no outstanding dues or unresolved breaches
• The outlet must have achieved an average quality audit score of 75 or above in the preceding 12 months
• The franchisee must agree to the then-current franchise terms, fee structures, and brand standards at the time of renewal
• A renewal processing fee of Rs. 1,00,000 is payable upon execution of the renewal agreement

7.2 Renewal Term

Renewed Agreements shall be valid for a subsequent period of three (3) years per renewal term. Both parties may mutually negotiate extended renewal terms in writing.

7.3 Exit & Transfer of Ownership

Should a franchisee wish to exit by transferring ownership to a third party, the following conditions apply:

• The proposed transferee must meet Chennai Maratha’s franchisee eligibility criteria and be approved in writing by the franchisor prior to transfer
• The franchisor holds a right of first refusal to purchase the franchise outlet at the price offered by any bona fide third-party buyer
• Upon approval of a transfer, a Transfer Fee of Rs. 2,00,000 is payable to the franchisor
• The outgoing franchisee remains liable for all obligations and dues incurred prior to the transfer date
• The incoming franchisee must complete Chennai Maratha’s mandatory training programme before assuming operations

7.4 Post-Exit Obligations

Upon exit, expiry, or termination for any reason, the franchisee must:

• Immediately cease use of the Chennai Maratha name, logo, brand marks, and all associated intellectual property
• Return or destroy all proprietary materials including recipes, manuals, marketing collateral, and digital assets
• Ensure the physical premises are de-branded within 15 days to avoid confusion with the Chennai Maratha brand

Honour the non-compete clause of 12 months within the former Territory

8.1 Governing Law

This Franchise Policy and any Agreement arising from it shall be governed by the laws of the Republic of India. Any disputes shall be subject to the exclusive jurisdiction of courts located in Chennai, Tamil Nadu.

8.2 Dispute Resolution

In the event of any dispute, both parties shall first attempt resolution through good-faith negotiation within 30 days. If unresolved, the dispute shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, with a single arbitrator appointed by mutual agreement.

8.3 Amendments

Chennai Maratha reserves the right to amend, update, or revise this Franchise Policy at any time. Franchisees shall be given a minimum of 30 days written notice before any material changes take effect. Continued operation after the notice period shall constitute acceptance of the revised terms.

8.4 Entire Agreement

This document, together with the executed Franchise Agreement and its Schedules, constitutes the entire understanding between the parties and supersedes all prior representations, negotiations, and communications, whether oral or written.

For Queries & Franchise Applications

Chennai Maratha Hospitality Pvt. Ltd.

Email: info@chennaimaratha.com | Phone: +91 83609 33540

Website: www.chennaimaratha.com