🛡️ Institutional Governance

### 1. The FDD Mandate on Franchisecap Franchisecap enforces institutional disclosure benchmarks inspired by global Franchise Disclosure Document (FDD) frameworks to safeguard retail and corporate franchise investors in India. ### 2. Item 19 Financial Performance Representations (FPR) Any franchisor publishing store sales numbers, unit-level gross profit margins, EBITDA ratios, or breakeven timetables on Franchisecap must submit supporting documentation: - Historical audited Profit & Loss statements from representative operating units. - Disclosure of corporate-owned vs franchisee-owned store performance variance. - Clear itemization of raw material COGS, central supply margins, and technology levies. ### 3. Territory Exclusivity & Cannibalization Safeguards Franchisors must specify radial territory protection, delivery aggregator geofence boundaries, and minimum inter-store distance covenants to prevent cannibalization between fellow franchise partners. ### 4. Fee Transparency & Hidden Capex Prohibition All mandatory fees must be itemized prior to introduction: - Upfront Brand / Franchise Fee - Royalty & Central Marketing Levy - Kitchen fitout, equipment specifications, and mandated vendor pricing - Working capital reserve suggestions ### 5. Investor Due Diligence Responsibility While Franchisecap screens franchisor submissions, investors must review formal FDDs and franchise agreements with qualified commercial legal counsel prior to capital transfer.