the Franchise details

Who are We?
Sahaja Aharam Producer Company Ltd., (SAPCL) is a federation of several producer
cooperatives spanning across the states of AndhraPradesh, Telangana and Maharashtra.
SAPCL is an initiative to connect farmers with Consumers (F2C) and building their
entrepreneurial skills and linking their institutions to markets (B2B). Today, we are a family of
20 producer cooperatives, 1 consumer cooperative, 2 producer companies, working with 500
third party certified organic farmers (Regd; 2500 PGS organic
farmers and 1500 organic in-conversion farmers.
What do we do?
We work with farmers directly. We help them with better production planning; crop
management; bio-inputs & post harvest management. We also facilitate farmers’ access to
formal credit, insurance and markets. To sustain the efforts we facilitate institution building of
producers. In a small way we procure agricultural and allied products from the producers’
institutions and pay them the best prices along with premium because of their concerns for
the environment, safe food and the efforts for organic practices.
How do we serve?
At one end of the spectrum we serve our farmers by offering them the best prices and the
premiums. On the other end of the spectrum we serve the consumers by running our own
retail stores; take online orders and home delivery; giving out franchises & putting our
products in other premium stores. We also supply in bulk to various companies.
In our efforts we ensure that farmers get 50% to 60% of the selling prices against the
conventional norm of 20%.
What do we deal with?
Cereals: Sonamasuri Rice, Semi-polished Rice, Brown Rice, Red Rice, Wheat, Multigrain
Millets: Finger Millet, Foxtail Millet, Sorghum, Pearl Millet.....
Pulses: Red gram, black gram, Bengal gram, horse gram.....
Oils: Groundnut oil, seasame oil, .......
Spices: Ginger, Chillies, turmeric, garlic, onions, cardamom, cinnamon, clove, pepper, .....
Vegetables: mainly, .............................
Herbals: .....................................
Sweetners: Khandasari-sugar, Brown sugar, sugarcane jaggery, sugarcane jaggery powder,
palm jaggery, palm jaggery powder...............
Personal care products: soaps, shampoo powder ..........................
Seeds: Paddy, cotton, redgram, soya, bengalgram, vegetables, flowers ......................
SAPCL, is promoted by Centre for Sustainable Agriculture that works with farmers in
Ananthapur, Kadapa, Kurnool, Vizianagar, Visakhapatnam and Srikakulam districts of
Andhra Pradesh; in Telangana, CSA works in Warangal, Nalgonda, Medak and Adilabad
districts; and in Maharashtra CSA works in Wardha and Yavatmal districts.
Abstract of a Franchise Contract
SAPCL is currently having 2 of its own stores in the city of Hyderabad; 1 franchise store in
the city of Vishakapatnam; 10 stores-in-stores; on-line sales; network -marketing under the
label of “FARMER DIRECT”. SAPCL also caters to bulk orders. This endeavour is to
promote a healthy lifestyle by way of making safe food accessible and affordable to
SAPCL has prepared its business plan for the next 3 years. This business plan has been
shared with the producer cooperatives, the processing units as well as the financial
institutions. One of SAPCL’s member institutions owns a seeds processing unit in Wardha,
Maharastra. SAPCL has identified land and the necessary human resource to set up
additional infrastructure (procurement centres, processing, storage, packing etc.) in many
parts across the country. SAPCL has also started the Kharif procurement. It now intends to
intensify its sales/marketing.
To support SAPCL’s growth plans it is now offering franchise partnerships. Being a
partnership both the parties will gain. Some key principle of the franchise partnership
(agreement) is elaborated below:
Role of the Franchisor (SAPCL):
Business, Terms & conditions
SAPCL would provide their entire range of products which includes Cereals, Millets,
Pulses, Spices, Edible oil, Herbs and Healthy products, sweeteners, snacks, Flours,
seeds and bio-inputs, books and publications related to agriculture to the “Franchise”.
SAPCL will give exclusivity rights to the Franchise to act as a single point store for all the
products and services provided by SAPCL for the geographical area as will be predetermined by a mutual agreement.
SAPCL will supply all the products based upon written indents from the “Franchise” up to
limits mutually agreed upon. SAPCL will enhance the limit of Franchise by amounts
received by it from “Franchise” from time to time.
SAPCL will give the maximum sales commission to the franchise depending upon the
business environment.
SAPCL will assist the franchise with business promotion within its limited means (web
portal, public talks etc.)
The Franchise shall pay a refundable deposit of 200,000 at the signing of the contract
against which the franchisor will supply goods worth Rs. 3 lakhs.
The Franchise shall pay a monthly sum of 2% on the previous month’s turnover as
Service management fee (trainings, orientation on importance of organic food, product
information, marketing support, media coverage, social media promotion, data
management and online marketing etc.,) to the Franchisor.
Legal Compliance
The franchisor will comply with all Indian laws applicable to it and not entangle the franchise in
any of it.
Credit and Delivery period:
The credit period available to the franchise by the Franchisor will be 45 days.
SAPCL will supply the products within seven days after receiving the written indent
from the Franchise.
 The minimum order must be to the tune of Rs.50000-00.
 SAPCL will not take back unsold products from the Franchise unless there is a
quality issue raise within a week.
Damages during transportation:
 The Franchisor takes the responsibility of delivering the products in good condition to
the agreed store/ warehouse of the Franchise. In the event of any damage during
transportation the liability rests with the Franchisor.
 The cost of transport will be borne by the franchise.
Role of Franchise
Business, Terms & conditions
The franchise makes a written application to the franchisor. All the obligations of the
“Franchise” under this agreement will be legal, valid and binding obligations
enforceable in accordance with its terms. The franchise declares that there are no
proceedings pending against the franchise, which may have an adverse effect on the
ability of the franchise to perform and meet its obligations under this agreement.
The franchise is ready with its own retail space-whether self owned or taken on a
lease on a long term basis.
The minimum space of the retail unit should not be less than 600 sq ft.
Franchise” will not enter into direct agreements with any other Franchisor or any
similar entity in India for selling of similar products supplied by SAPCL, for the
duration of this agreement.
The Intellectual Property Rights including the products, processes and strategies will
rest with SAPCL.
Sahaja Aharam’ is a brand registered by Centre for Sustainable Agriculture and
‘SAPCL’ is the sole licensed user of the brand.
Financial Obligation
The franchise should have adequate financial resources to invest in land, furnitures,
fixtures and other equipments.
The franchise should maintain transparent financial mechanism.
Legal Compliance
 The franchise should comply with all legal requirements of the law of the land.
General Terms & Conditions
1. “Franchise” shall keep all information of confidential nature received from SAPCL in
whatever form as strictly confidential and shall not disclose it to third Parties without the
prior written consent SAPCL during the term of this Agreement.
2. “Franchise” agrees not to disclose revenue Information without prior written consent of
 The Franchisor will be not being liable for any damages arriving out of mishandling or
negligence by the Franchise.
The Franchise agrees to avail adequate insurance coverage for the products
available in the retail store, kept at the godown and also for fixed assets.
The purpose of this pamphlet:
It is a well known fact that changing life style coupled with pesticide laden food, contaminated
water is causing major health hazards. This has forced families and communities to move away
from conventional food to organic food. The movement for consuming organic food started in the
USA and Europe but is now spreading to the Southern countries, mainly India and China.
The organic food industry is growing very fast in India. According to a Yes Bank Limited study of
2012, the overall market size of organic food is around 1000 crores and is expected to grow at a
rate 20% per annum. A similar study in 2013 by Tech Sci Research called “India Organic Food
Market Forecast and Opportunities – 2017” projects the organic food market to grow by 19%
between 2012 till 2017. The same organisation in its report “Global Organic Food Market
Forecast and Opportunities, 2020” projects a growth of 16% per annum through the 2020s.
The shifting paradigm is further propelled by the entry of major retail chains, penetration of
organic products into semi-urban & rural areas and the regulatory regime. Studies in India,
across states, show that the semi-urban market is growing at the equal speed as their urban
counterparts. This opens up new opportunities for many of us.
One such opportunity is taking franchise of well established brands. The strength of franchise
is that unlike stand alone small businesses, franchises offer an increased degree of
security. Their failure rate is much lower than the Mom & Pop stores as consumers
immediately recognise the brand and associate with the brand value.
SAHAJA AHARAM is currently offering retail franchise opportunities to interested parties.
SAHAJA AHARAM offers organic and pesticide free products which is an added advantage.
SAHAJA AHARAM does promote its franchise through various channels.
Currently, SAHAJA AHARAM is supplying Cereals, Pulses, Millets, Oils, Vegetables, Herbal
products, Sweeteners, personal products and Seeds.
The Franchise is required to:
 Have a written agreement with the franchisor,
 Have a dedicated retail location of about 600 to 1000 sq.ft, either owned or leased in
on a long-term basis.
 Preferably, a separate warehouse.
Invest in the furniture, fixtures and other equipment
Make a refundable security deposit to the franchisor
Does not get into similar business agreement with any other company while the
contract is in vogue
Comply to all relevant laws and licenses of the land
The Franchisor on its part will provide:
Assign a specific geographical location as its territorial right.
Goods and commodities on a regular basis against the indent
Ensure quality
Take responsibility for transportation damage
Carry out promotional activities to increase business turnover
Introduce new products to increase sales volumes
Integrate the Franchise details in its web portal
Pass on online orders to the franchise from the franchise’s location.
How Does the Franchise Benefit?
To give a rudimentary Example, let’s say that a franchise wants to start in a small way. The
economics of the small start up will be as follows:
Investment in furniture, fixtures and other
Investment in stock (refundable deposit)
Total Investments
Operating Expenses
Store rent per month
Sales staff ( 1 person) per month
Electricity & other expenses
Total Operating Expenses/month
Goods supplied by Franchisor against deposit
Assuming daily sales of 10,000 x 30 days
Assuming 25% of sales as margin
Operating profit per month
Cost of capital (on 400,000) @ 12% per
annum (calculated on a monthly basis)
Profit after cost of capital