Terms and Conditions of Franchisee /Dealership

M/s. Foam Mattings (India) Ltd. is the PRINCIPAL is producing various Coir, Jute, Sisal products and the ‘AGENT / DEALER ‘ in the person who is trading the principals products.

  1. The PRINCIPAL agrees to pay the agent, commission/incentive of 10% of the realized value as per the pricing depicted in the price list.
  1. The Payment terms will be 25% along with the purchase order and balance 75% before dispatch, transportation charges will be suffered by the Buyer/Agent/Dealer.
  1. The Agent will take orders from customers or means like direct contact, by presentation of sample products on its site or otherwise on behalf of the Principal and shall pass on the orders to the Principal for execution. The Principal agrees to prompt execute the order in the FOMIL’S title as per the terms contained in the order. Principal agree that prompt execution of the order is important for the good reputation and future business prospects of the Agent and the Principal.
  1. Product specifications, quality parameters, price, terms of payment and the mode of dispatch relating to the product need to be stated in the orders canvassed.
  1. Standard packing will be arranged by the company. Special packing will be arranged on extra cost.
  1. The Principal will give advance written notice of not less than one month when there is revision in product price or any other terms in respect of their products so as to enable the Agent to incorporate such changes in the site.
  1. When there is any request for samples from the party before confirming the order, the cost of samples up to Rs. 1000/- in an year will be borne by the principal. For samples costing over and above Rs. 1000/- the cost of sample with actual freight charges will be paid by the Agent/Buyer to the Principal.
  1. The Agent is given an annual target of Rs. 7.5 lakhs for sales of products of the company. Performance of Turnover will be reviewed after 6 months.
  1. The Agent has to deposit Rs. 50,000/- (Rupees Fifty Thousand) as advance to the Principal.The Principal agrees to accept order on the Bank guarantee amount also. If so goods will be dispatched to the Agent as per terms and conditions agreed mutually and documents will be sent through bank for collection.
  1. The parties will have the right for making any modifications on the terms and conditions of the agency on mutual agreement and such modifications are bindingfor both the parties.
  1. The Principal have the right to cancel the agreement without prior notice or without assigning any reason if the Agent is involved in any activities affecting the spirit of agreement.
  1. This agreement is initially for a period of one year from ……………………………and can be extended on mutual agreement. The performance of the Agent will be reviewed once, in six months. Unless the period of agreement is renewed after one year, the validity of agreement shall continue till the same is terminated by the Principalin written.
  1. The Principal has the right to engage more agencies in an area /State where agent is doing the business.
  1. Agent can revoke the agreement by giving three months prior notice to the Principal.
  1. Agent/Principal can attend or arrange fairs or display the products through showrooms for the purpose of sales promotion. The expenses for the same will be met equally if such sales promotion activities are undertaken jointly with mutual consent and prior approval of both the Principal and the Agent.
  1. The agreement shall be deemed to have been made at Alappuzhaand the courts at Alappuzhaalone shall have jurisdiction to decide over any legal dispute arising thereon.,
  1. The Principal can canvas and execute Government related orders from the area allotted to the dealer in which Agent will not be eligible for any sort of Incentives/ Commission.
  1. IN WITNESS WHEREOF THE parties hereto have sent their hands on this the …………………………………………….

Mr. A. Vikraman Nair

Managing Director

M/s. Foam Mattings(India) Limited

PB No.4619, Beach Road

Alappuzha

(Signature with seal) (Signature with seal)

Witness

  1. SenthilPrakash

Commercial Officer

Foam Mattings(India) Limited

Alappuzha

  1. T.S. Shaji

Senior Assistant

Foam Mattings(India) Limited

Alappuzha