kvic.org.in Apply for Franchise Scheme : Khadi & Village Industries Commission
Organisation : Khadi & Village Industries Commission KVIC
Facility : Apply for Franchise Scheme
Website : http://www.kvic.org.in/kvicres/index.html
Terms & Conditions : https://www.statusin.in/uploads/23982-Franchise.pdf
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Apply for Franchise Scheme :
Khadi & Village Industries Commission (KVIC) under Ministry of MSIYE, Govt. of India through Khadi and Village Industry programs is looking for franchise in district places & State capitals to stock and sell Khadi and Village Industries products on franchise basis, “Khadi India Outlets” will be given on franchise basis.
Related / Similar Service : KVIC Digital
Individuals/proprietorship/Private Limited Companies/Limited Companies/partnership Firms;interested can apply in the prescribed format to the Director (marketing) KVIC giving following details.
Conditions :
i, Applicant should be Income Tax payee for at least 3 years.
ii. Must be financially sound.
iii. Preference will be given to those :
a) Having own air-conditioned show room /rented show room of minimum size of 1000 Sq, Ft, at a prominent place.
b) Having experience of marketing of apparels / ready made garments / dress material etc. Selected parties will enter into an agreement with the KVIC for a period of 5 years to sell Khadi & Village Industries products.
Application with a non-refundable tender fee of Rs.5000/- should be submitted to Directorate of Marketing , KVIC, Mumbai on above address along with application form , The application form , details of terms and conditions contained in Agreement may be seen at Website of KVIC.
The Tender Fees should be in form of at par cheque/DD in the name of Director (Marketing) payable at Mumbai/ through NEFT in SB A/C no.10176548655 of State Bank of India , Vile parle (West), Mumbai-400056 in favor of ” DIRECTORATE OF MARKETING, KVIC,, having CIF no. 80138251736, IFSC code SBIN0000515, MICR Code 400002083,
Terms & Conditions :
(A) Validity Period :
This Agreement shall be valid for a period of 5 years (“Validity Period”) and may be further extended for a period and on such terms and conditions as decided by the Franchisor.
Such extension shall be considered only if the Franchisor is satisfied of the performance of the Franchisee and achievement of the revenue targets during Validity Period, The Franchisor reserves the right to terminate the Franchise prematurely, in case the work of Franchisee is found against the cause of and detrimental to the interest of franchisor,
(B) Security deposit :
The Franchisee within 15 days of signing this Agreement shall furnish a security deposit of Rs.10.00 Lakhs (Rupees Ten lakhs only) (“Security Deposit”) with the Franchisor, in the form of payment through NEFT in SB A/c no.10176548655 of State Bank of India , Vile Parle (west)/ Mumbai-4OOO56 in favor of’ DIRECTORATE OF MARKETING, KVIC” having CIF no. 80138251736, IFSC code SBINOOOO515, MICR Code 4OOOO2O83.
The Security Deposit is towards security of stocks to be provided by the Franchisor and stocks of such Products shall be provided to the Franchisee to the extent of 80o/o of the Security Deposit only.
The security of stocks will be secured by way of Security Deposit at all times during the Validity period by the Franchisee i.e. stocks will be issued only against Security Deposit.
The Franchisee shall have to remit the payment to the extent of sale of Products of a given month in the next month latest by 5th day of every succeeding month to the Franchisor and in case that day happens to be a holiday then it shall be next following day.
The Franchise can purchase further goods equal to the amount/sales proceeds deposited with Franchisee over and above the actual Security Deposit of Rs.2.00 Lakhs.
This Security Deposit will be refunded by the Franchisor to Franchisee without any interest on the expiry of the Validity Period. In case the Franchisee decides to terminate the agreement before the expiry of the Validity Period, he/she shall ensure that the inventory/ sales realization and other statutory provision related to the consignment of the Franchisor are settled.
The Franchisor shall release the Security Deposit to the Franchisee after confirming that Franchise does not have any dues to be paid to Franchisor.
In case of any existing dues or claims, the security Deposit shall be refunded by the Franchisor to the Franchisee only after adjustment of such dues/claims by the Franchisor.
(C) Royalty :
The Franchisor shall decide the MRP as per policy guidelines of Directorate of Marketing.
(D) Sales Target :
The Sales Target may vary according to the Geographical Area/Locality i.e. Prime Location, City and Premises, etc., and shall be decided by the Franchisor however the minimum average sales target of Rs, 1.50 crore per annum (calculated at an approximate amount of Rs.50,000 per day “Minimum Sales Target”) has to be achieved by the Franchisee for which there will be a moratorium period of 12 months from day of operation,
(E) Agency Commission :
The Franchisee may be entitled for trade commission on the Products/any particular Product as decided by the Franchisor, The Franchisee shall be not be entitled for any rebate on Khadi product.
(F) Transport :
The Franchisee shall at their own cost have to arrange their own transport to carry the goods from Franchisor to the Showroom of the Franchisee.
(G) Insurance :
The Franchisee shall preferably insure all furniture and fixtures and civil works at its own cost and expenses. The Franchisee shall at its own cost, preferably take out insurance for the value of the stocks, and cash available at the Showroom.
(H) Placement of order :
i. The Franchisee shall submit his indent to the Franchisor for the Products in advance to enable the Franchisor to procure the Products as per demand, The indent shall be executed by the Franchisor against the amount of Bank Guarantee or payment of cash.
ii. If the Franchisee seeks credit facilities against his indents, then the value of the indent have to be liquidated by the Franchisee within a period of 30 days, failing which the Franchisor shall have the right to recover the amount from the Security Deposit.