Section 01Tenure & lock-in.
The default investment tenure is 5 years, with a 3-year minimum lock-in. After year 3, exit windows open at each anniversary. Multi-cart investors can structure staggered tenures across the portfolio.
- Year 1–3: lock-in. Distributions, no exit.
- Year 4–5: annual exit window, 90-day notice.
- Year 5+: renewal at refreshed terms (right of first refusal to investor).
Section 02Return waterfall.
Distributions follow a published waterfall, applied monthly:
- Operating costs. COGS, labour, utilities, marketing — paid first.
- Royalty & brand fund. 5% royalty + 2% marketing, network-pooled.
- Working capital reserve. Replenished to 60-day floor before any distribution.
- Management fee. Fixed % to GRILZO for operating the cart.
- Investor share. Majority of remaining net to investor; balance to GRILZO as profit-share.
The 60-day reserve protects both parties from cash-flow surprises. Distributions resume once the reserve is intact.
Section 03Investor protections.
- Audit rights. 7-day notice, on-demand, no cap on frequency where cause exists.
- Asset registration. Cart and equipment registered in the investor entity name.
- Insurance. Full-asset cover, premium absorbed by GRILZO.
- Capital ring-fence. Per-cart books, no commingling across investors.
- Reporting SLA. Monthly P&L by 7th of next month, audited annually.
- Information rights. Direct dashboard access for the investor portal.
Section 04Exit windows.
Exits open after the 3-year lock-in, at each anniversary. Three pathways:
Sale to a buyer
Investor finds a buyer; GRILZO has 14-day right of first refusal at same terms.
GRILZO buyback
HQ buys back at the depreciation-adjusted formula below.
Network buyback
Cart offered to other investors at network-published valuation.
Asset transfer
Available in years 5+ — investor takes physical custody, brand licence ends.
Section 05Buyback formula.
The buyback formula is straight-line and published in the agreement annex:
| Component | Treatment |
|---|---|
| Cart & equipment | Original cost less straight-line depreciation over 5 years |
| Brand & software fee | Pro-rata unamortised portion |
| Working capital | Returned at face value |
| Pending distributions | Settled at exit |
| Goodwill premium | Negotiable, based on trailing 12-month performance |
Section 06Dispute resolution.
Three-step ladder, identical in spirit to the franchise agreement:
- Internal mediation. Partnerships head reviews within 14 days.
- Independent panel. Two GRILZO leads + one network-senior partner — non-binding recommendation.
- Arbitration. Single arbitrator, Arbitration & Conciliation Act, seat at Gurgaon. Binding.
Want the full draft agreement?
The unredacted, lawyer-reviewed FOCO draft is shared after the discovery call and signed NDA.