Franchise

Tathastu Uniforms

Franchise Package & Draft Agreement

A complete, ready-to-review franchise offering and draft agreement for Tathastu Uniforms covering what we sell, franchise model options, investment and costs, responsibilities, showroom & staffing specifications, operations, marketing, risk and mitigation, legal/contract clauses, checklists and onboarding templates. Use this as both a commercial pack for prospects and a legal drafting base (have legal team review before signing).

Executive summary

Brand

Tathastu Uniforms — school & institutional uniform specialists (suiting, shirting, fleece, trousers, blazers, accessories).

Franchise model offered

Exclusive Territory Retail Franchise (primary), with alternative options: Master Franchise (state-level), Area Developer, Shop-in-Shop, and E‑commerce + Fulfillment Partner.

Core proposition to franchisee

Proven product range, central design & quality control, established supplier/manufacturing pipeline, brand toolkit, sales & marketing assets and training.

Franchise offering

We offer franchise opportunities in two formats only: – Shop-in-Shop Franchise: Low investment, placed inside an existing garment store/supermarket. Company manages stock; franchisee manages sales. – Master Franchise (District Level Only): Exclusive rights for an entire district. Franchisee manages district-level school onboarding; company manages stock.
Franchisor supplies all products, catalogues, technical specs, branding, POS, and training. No tailor is provided; alteration services are optional and handled by franchisee if needed.

Franchise models

Shop-in-Shop

Small space requirement (80–150 sq ft inside existing store)
Company-managed stock; franchisee focuses only on selling
Best for dense school zones or markets with existing footfall

Master Franchise (District Level Only)

Exclusive rights for one district
Initial fee covers district launch
Additional fee charged per school added in that district

Investment Summary

One-Time Investment

Franchise Fee: ₹5,00,000 (district-level or shop-in-shop)
Additional Fee: Extra charges apply per school added in the franchisee’s district

Ongoing Structure

No royalty
No percentage on sale
Franchisee’s income = Profit on MRP (margin per product)
Stock fully managed by company (supply, replenishment, returns)

Other Clarifications

Franchisee hires their own staff; company does not provide staff
Company provides:

- Sales executive training
- 7 visits per month for support & monitoring

Franchisee & franchisor obligations

Franchisor responsibilities

Grant limited, non-transferable license to use brand & IP per territory.
Supply product technical specs, quality control standards, approved vendor list, and initial inventory support.
Provide showroom layout, branding guidelines, POS/ERP integration, training manuals, onboarding and staff training (initial 5 days + periodic refresher).
Marketing support: launch campaign assets, digital templates, national advertising.
Ongoing design & new product development; seasonal catalogues and bulk contract handling support.
Quality audits, product replacement policy for manufacturing defects.

Franchisee responsibilities

Invest in showroom fit-out per brand guidelines; maintain look & feel.
Follow pricing strategy (MAP — minimum advertised price), merchandising, and inventory plan.
Meet minimum purchase and royalty/advertising fund obligations and monthly reporting.
Staff recruitment, payroll, training adherence.
Actively pursue B2B contracts (schools), local promotions and community relations.
Maintain sanitization, returns policy and customer service standards.

Showroom specifications & operational checklist

Recommended showroom sizes & staffing

Small (400–700 sq ft)

2–4 staff (manager + salesperson + tailor/alteration), 1 fitting room.

Medium (700–1,200 sq ft)

4–7 staff (manager + sales x2 + alteration x2 + stock handler), 2 fitting rooms.

Large (1,200+ sq ft)

6–12 staff; dedicated B2B office area.

Fit-out must-haves

Exterior signage with brand-approved logo and illuminated signboard.
Retail fixtures: display racks, sample boards, mannequin(s), branded counter, POS desk, alteration station with sewing machine(s).
Backroom: inventory racks, packing table, storage for sizes and seasonal stock.
Furnishing: comfortable customer seating, kids-friendly area (if targeting schools).
Branding: approved color palette, logo placements, lifestyle images, product technical data removed from customer-facing areas.

Equipment list also

POS terminal & printer
Barcode scanner & label printer
Sewing & alteration machines (1–2) + steam iron
Mobile tablet for order taking
Stock management shelving

Sourcing, inventory & supply chain

Supply model: Central manufacturing with scheduled regional dispatches (recommended) OR consignment model for certain SKUs.
Lead times: Standard stock SKUs 7–14 days; made-to-order / bulk 30–45 days. Communicate SLAs in contract.
Minimum order quantities (MOQ): per SKU (e.g., 10–25 units) — define by SKU category.
Packaging & labelling: Brand-approved packing (polybags, swing tags, size labels, care instructions). Safety and compliance marking where applicable.
Quality control: Incoming inspection at franchisor dispatch and random in‑market audits. Rejection/rework policy and credits described.

Pricing, margins & incentives

MSRP guidance — provide mapped price list with wholesale and retail margins.
Franchisee margin: target gross margin 30–45% on retail after cost of goods and royalties.
Volume incentives: tiered discounts for higher monthly purchases (e.g., 0–100k: base; 100–300k: +3% discount; 300k+: +5% discount).
Promotional discounts: pre-approved sales only; deep discounts require written approval to protect margins and brand value.

Training & onboarding

Initial training (Week 1 onsite or virtual): brand induction, POS/ERP, product & fabric technical training, tailoring/alteration basics, sales & B2B negotiation.
Operations manual: store SOP (opening/closing, inventory, returns, customer flow), HR manual, health & safety.
Periodic refreshers: quarterly training webinars and annual in-person update.
Franchisor pass/fail checks: franchisee passes onboarding after demonstration of key competencies (sample store day simulation).

Marketing, launches & lead generation

Local launch plan: pre-launch school visits, sample boxes to school decision-makers, local PR, social media ads, influencer tie-ups for parent groups.
Ongoing digital play: Google Business Profile, localized ads, targeted FB/Instagram campaigns, WhatsApp catalogues for parent groups.
Co-op marketing: advertising fund used for national campaigns; local campaigns co-funded (advertising fund contribution + local spend by franchisee).

Sales, B2B contracts & fulfilment

B2B process: sample approval → quotation (with lead time) → purchase order → deposit (20–50%) → production → delivery & installation.
Service levels: on-time delivery target 95% for seasonal stock, faster SLAs for urgent orders (expedite fees may apply).
Returns & replacement: manufacturing defects replaced at no cost if claimed within defined warranty window (e.g., 30 days after delivery for stitching/manufacturing defects).

Reporting & KPIs

Monthly reporting: sales by SKU, inventory on hand, outstanding orders, B2B pipeline, marketing spend, footfall & conversion.
Core KPIs: revenue vs target, average order value, units per transaction, gross margin, on-time delivery %, customer satisfaction score.
Audit rights: franchisor may audit books & inventory with prior notice (or without notice in case of suspected breach).

Grant of Licence and Territory

Exclusive rights in a defined geography; non-compete carve-outs; reservation of online sales rights by franchisor if needed.

Term & Renewal

5 years term, renewal upon meeting performance metrics and payment of renewal fee.

Fees

Franchise fee, royalties (percentage or fixed), advertising contribution, minimum purchase obligations.

Intellectual Property

Ownership retained by franchisor; strict brand usage guidelines; right to inspect and require remediation for misuse.

Quality Control & Standards

Compliance with fabric specs, production processes, and packaging standards.

Training & Support

Defined obligations and limits (e.g., number of free training sessions included).

Termination Events

Material breach, insolvency, non-payment, abandonment of store, repeated failure to meet purchase thresholds.

Post-Termination

Brand removal, inventory sell-off period conditions, non-use, non-disparagement.

Confidentiality

Non-disclosure of trade secrets, pricing, supplier lists.

Indemnity & Insurance

Franchisee to maintain public liability, product liability and property insurance. Indemnify franchisor for franchisee negligence.

Dispute Resolution

Multi-stage (conciliation/mediation → arbitration in specified seat → courts as last resort). Choose governing law (state in India) and arbitration rules.

Audit & Inspection

Right to inspect stores and records to ensure compliance.

Key clauses

Risk factors & mitigation

Seasonality & demand risk

Schools drive seasonal peaks. Mitigation: stagger inventory, promote off-season products, offer corporate uniforms.

Supplier disruptions / lead time delays

Mitigation: buffer stock, alternate vendors, clear SLAs, expedite fee policy.

Credit & cash-flow risk (franchisee)

Mitigation: require working capital proof, staged inventory financing, deposit for bulk orders.

Brand dilution through unauthorized discounting

Mitigation: MAP policy, penalty clauses for breach.

Operational risk (poor store execution)

Mitigation: probationary period, intensive training, mystery shopper audits.

Operational playbook (high level SOPs)

Daily

open/close checklist, POS reconciliation, receive shipments, daily sales log.

Weekly

inventory counts (cycle count), merchandising refresh, school outreach calls.

Monthly

sales report submission, payroll, payments to franchisor (royalty & AMF), staff training session.

Order process flow

enquiry → sample → quotation → PO → deposit → production → QA → dispatch → delivery → COD/Balance → after-sales.

Onboarding checklist for new franchisee

Signed franchise agreement and initial fees paid.
Location finalised and approved per brand checklist.
Fit-out completed to brand specifications.
POS & ERP installed; bank account for payments linked.
Initial inventory received and SKU tagging complete.
Staff hired & trained; onboarding certificates issued.
Launch marketing plan executed (local PR, social ads, school outreach).
Operational documents & SOPs in place.

Franchisee screening questionnaire (for prospects)

Full legal name, identity proof, company structure (proprietorship/LLP/Pvt Ltd), GST details.
Business experience (retail / uniforms / apparel / B2B sales) — years & previous run stores.
Financials: net worth, working capital available, bank references.
Proposed location (address, area, annual footfall estimate), lease terms.
Local school & institutional contacts; pipeline of expected orders (names & expected sizes).
Commitment: planned investment amount, ability to meet minimum purchase and royalties.
Local marketing plan ideas and prior experience executing local campaigns.
References from previous business partners / landlords.

Sample timeline for launch (0–12 weeks)

Week 0–1: Agreement finalised, fees paid, territory mapped.
Week 2–4: Location fit-out and procurement of fixtures, POS setup.
Week 3–6: Initial inventory manufacture/dispatch, staff hiring & training.
Week 6–8: Inventory arrival, merchandising, soft launch and B2B outreach.
Week 8–12: Grand opening, local marketing push, first major school engagements.