Agreement & Exit Policy.

Section 01Tenure & renewal.

The COFO Franchise Agreement runs for 36 months from the date of cart handover. Renewal is automatic for performing outlets — defined as no Tier-3 breaches and consistent passing audit scores — at the same commercial terms.

What earns auto-renewal

• Zero Tier-3 breaches across the term
• ≥ 80% pass rate on quarterly field audits
• ≥ 92% on-time settlement reconciliation across the cycle
• Customer rating ≥ 4.0 on the Grilzo Seller App

Operators who meet the renewal criteria receive a one-page extension addendum — no fresh paperwork, no fresh deposit, no re-onboarding. The same cart, the same territory, the same rate card.

Upgrade pathways

• Cart upgrade. After 18 months, eligible operators may apply for an upgraded cart format — larger footprint, additional cooking range, premium signage — at no additional deposit.
• Multi-cart operator. Top-quartile operators are offered the right to operate a second Grilzo cart in a different territory, with waived onboarding fees.

Section 02Mutual obligations.

What GRILZO commits to (owns the asset, runs the system)

• Branded cart, all cooking equipment, exhaust hood, refrigeration — Company-owned
• Brand licence, recipes & menu IP, costed recipe cards, supplier list
• Seller App & QR system access for the full tenure — every transaction tagged to your cart
• Cart asset insurance (theft, fire, major damage) and AMC for hardware
• FSSAI & license filings registered under Grilzo's compliance framework
• Free location feasibility study and dispute escalation within published SLAs

What the operator commits to (runs the outlet, owns the outcome)

• Operate the cart at the registered address only — relocations require approval
• Minimum 8 operating hours per day, 26 days per month
• Standardised recipe cards, portion sizes, and Grilzo-branded apparel during service
• Capture every order on the Seller App — including any cash-paid transactions within 5 minutes
• Daily utilities, raw material (from approved supply), and consumables
• 75% of gross revenue earned, after the 25% Grilzo share is netted weekly

Section 03Revenue share & weekly settlement.

Grilzo earns 25% of the gross sales recorded through your cart. There is no monthly rent, no platform fee, no royalty, no service charge. One number, applied transparently on every transaction captured by the Seller App. 20% during the introductory window (first 60–90 days).

The weekly settlement cycle

1. Mon–Sun. Sales captured. Every order recorded on the Seller App via QR payment.
2. Sun · 23:59. Week closes. Sales register locked for the cycle.
3. Mon · 10:00. Settlement statement issued — downloadable PDF in your app dashboard.
4. Mon–Sun. 7-day disputes window. Resolution within 48 hours.
5. Tue · EOD. Funds transferred via NEFT/IMPS to your registered account.

Standard deductions (in this order)

1. Grilzo revenue share. 25% of gross (or 20% during the introductory window).
2. Approved raw-material reorder. Netted only if you've opted in to auto-replenishment.
3. AMC & insurance. Nil for the operator — absorbed into the 25% share, not deducted separately.
4. Penalties. Applied only after written notice and the operator's response window.

Section 04Performance review.

A 60-day check-in is built into the agreement. The goal is to make the outlet work — not to abandon it.

• Day 30 — Soft check. Informal review with the partner-success team. Adjustments to operating hours, menu mix or marketing if needed.
• Day 60 — Formal review. Written, shared, three-dimension scorecard.
• Day 120 — Re-review. Triggered only if Day-60 sales fell short of target despite operator effort. Retrain, relocate, or restructure are all on the table.

A bad sales week is not a violation — that's what the Performance Review framework exists for.

Section 05Violations & termination.

Not every breach is the same. The agreement classifies violations into three tiers, each with a published response — from a written warning to suspension, financial penalty, or in the most serious cases, termination.

Every termination action is preceded by formal written notice citing the specific clause invoked. The operator retains the right to appeal once, in writing, to Grilzo's senior management within 7 days of the termination notice.

Section 06Exit & deposit refund.

Most franchise relationships go wrong at the exit — that's where ambiguity costs everyone. Exit can be initiated by the operator at any time, with 30 days' notice and the cart in operating condition. Grilzo does not require a "reason" to honour exit.

The 30-day exit timeline

• Day 0. Written exit notice — submitted via the Seller App or email to support@grilzo.com. Acknowledged within 24 hours. The 30-day clock begins.
• Day 1–3. Pre-exit discussion — partner-success manager explores solutions (relocation, retraining, cuisine switch).
• Day 4–15. Wind-down operations — cart runs normally; no new equipment requests; raw material reorders limited to two-week consumption.
• Day 20–25. Cart inspection & reconciliation — published checklist, draft refund statement shared.
• Day 26–30. Cart repossession & refund — final settlement and deposit refund credited within 7 working days of sign-off.

Deposit refund formula

When the deposit is refunded

• Voluntary exit with 30-day notice and clean inspection — full refund less only outstanding dues.
• Mutually agreed exit due to non-performance — full refund unless damage or breach is established.
• Termination by Grilzo for breach — refund subject to penalty assessment.
• Force majeure closure (civic action, area closure) — full refund without deductions.

Section 07Dispute resolution.

No long-running partnership is free of friction. The agreement defines a structured, time-bound process for resolving disagreements.

1. Direct discussion. Dispute first raised in writing with the partner-success team. Resolution attempted within 14 days.
2. Internal escalation. Escalated to Grilzo's Operations Head with a written response within 14 further days.
3. Mediation. An independent mediator from a recognised panel may be appointed at either party's request.
4. Arbitration. Final resolution under the Arbitration & Conciliation Act, 1996. Sole arbitrator. Seated in the operator's state.
5. Jurisdiction. Subject to arbitration, courts at the registered office of Grilzo Carts Pvt. Ltd. have exclusive jurisdiction.

Operator protections

• The agreement explicitly forbids retaliatory action against any operator who raises a dispute in good faith.
• Settlements continue normally during the dispute window, unless the dispute itself concerns the settlement amount.
• The operator may at any time request a copy of transaction logs, audit reports, and notices on file — at no cost.