A SCHEME OF AUTHORIZED FRANCHISE TRAINING CENTRES OF NIESBUD

  BACKGROUND

In today’s world the concept of franchising is fast catching up including in the educational world. It is a business partnership. Like all business partnership it involves two parties i.e. the Franchiser who provides know - how, training, system and the brand, whereas Franchise forms the front end and is responsible for managing the business unit. The Franchise Arrangement is prevalent in various fields but is quite popular in case of academic institutes. Computer education is one field where it is dominant.  Similarly the distance education programme of a number of universities is being run through Franchise arrangement. However, entrepreneurship Institutions, which need to expand their activities have not availed of this opportunity in a large measure.  There is a growing need for EDP trainers and motivators as the number of accredited trainers is still limited in the country. For a faster economic growth and removal of unemployment and poverty, large-scale self-employment and income generation activities need to be taken up on priority.  There is a need for large-scale training of EDP trainers, particularly to implement social sector programmes.  Mention may be made of various development programmes, where management and entrepreneurial inputs are needed through various intervention routs.

1. Micro Financing through NGOs, Govt. Financial Corporations & Banks.

2. Hand holding schemes, which include entrepreneurship training followed by financial tie-ups and implementation of projects.

3. Development and Strengthening of Industrial and other Clusters.

4. Various loan schemes for income generation for weaker sections of Society, implemented by Ministries of Social Justice and Empowerment, Ministry of Tribal Affairs and Ministry of Minority Affairs.

5. Credit Schemes of various banks including NABARD, SIDBI, Regional Rural Banks.

6. STED Programme of Ministry of Science and Technology.

7. STEP Programme of Ministry of Women and Child Development.

8. Skilled Development Programmes under Skill Development Mission.

There is a need for large number of trainers for imparting entrepreneurship. Training to beneficiaries of various social sector schemes.  Presently various institutions such as NGOs, BDS providers and freelance professionals are engaged in entrepreneurship and skill development training apart from Govt. sponsored training institutions. There is a need for Accreditation of trainers particularly in Non-Government Institutions. Also a big pool of training institutions is needed throughout the country to train unemployed youth specially in rural and backward districts.  Keeping in view the vast potential of skill/entrepreneurial activities, three more national level entrepreneurship institutes are being set up under Ministry of MSME, so that all five Institutes under the Ministry can guide, motivate, coordinate with the small institutes/centres located in II & III tier cities/towns.     

Since it is not possible to develop infrastructure for so many number of training institutions including building, training aids and trained manpower, it will be worthwhile to adopt the Public Private Partnership (PPP) approach.  It is learnt that the ministry of MSME also favours this approach.  This way the infrastructure of various Private Training Institutions and NGOs can be utilized. Under the scheme NIESBUD which is the apex level entrepreneurship institutions in the country, will operate through Franchise Institutions providing them support in the form of curriculum, accreditation of trainers etc. The details of the obligations of NIESBUD and the Franchise are detailed below: -

1. Accreditate specific training programmes of Franchise Institutions.

2. Provide Syllabus for Accreditated Programmes.

3. Provide Training Materials for such Programmes.

4. Issue joint certificate for Accreditated Programmes.

5. Accreditation training of trainers of Franchise Institutes as part of NIESBUD’s Accreditation Programmes.

6. Provide Faculty Support occasionally to enhance quality of the programmes.

2.            CONSIDERATION  

In consideration for Franchiser providing the Franchise with the training resources and he techno professional know-how during currency of this Agreement, the Franchise shall pay to the Franchiser and the Franchiser shall be entitled to the following consideration from the Franchise.

(i)   Yearly licence fee of Rs. 10,000/- (Ten thousand);

(ii)   Refundable Security Deposit of Rs. 5,000/- (Five thousand);

(iii)  Rs. 20,000 (Twenty thousand) only as lump sum payment at the time of signing the Agreement;

(iv)  20% of the total fee collected from the trainees/students, in every programme and

(v)   Fee of Rs. 1,000/- (not refundable) for obtaining the application form.

All above payments, as far as possible be made to Franchiser, “suo- motto” by the Franchise or on Demand.

3.         BASIS OF SELECTION OF FRANCHISE

1.   The NIESBUD would emphasize more on technical capability, faculty strength and infrastructure of the proposed/applicant ‘Franchise’ by having proper role in respect of the following that:

(a)  The Franchise has the capacity and capability in respect of ‘technical capacity i.e. to say it has reasonable experience of running and managing techno-professional cum skill development programmes’.

(b) The faculty required by the ‘Franchise’ would comprise of ‘CORE FACULTY’ as also Visiting/Guest Faculty having technical/professional qualifications, wherever and whenever required and this aspect shall be finally decided and approved by the NIESBUD ensuring that ‘Proper/Prescribed Standard’ is followed without any deviation.

(c) The NIESBUD shall arrange required training, counselling and monitoring of the ‘Staff/Faculty’ appointed by the Franchise at their cost and expenses.

(d)  NIESBUD proposes to initially start the Scheme of ‘Authorized Franchise’ of NIESBUD in the States of UP/Uttarakhand. Further while approving the ‘Franchise Scheme’ the NIESBUD would also make all possible efforts to ensure that it/they have proper linkage with properly and lawfully established Financial Institutions like Banks, Govt. approved Institutions to meet the financial needs of the trained entrepreneurs.

(e)  The NIESBUD, before finally execution of ‘Agreement’ would also evaluate, Franchise’s performance with regard to attainment of the objectives, mentioned the foregoing pages in terms of ‘Participants Trained’, follow up services provided for their placement and also actual placement/development of their entrepreneurial efforts/activities during preceding two years. Only on being satisfied, the agreement shall be executed. Efforts will also be made by NIESBUD to contact some of the former participants, trained by the “Selected Franchise” to get the quality, techno-professional knowledge, skill, behavioural technique, PR approach alongwith attitudinal approach due to impact of training of those interviewed/contacted.

2.   The organization must be functional for atleast 3 years as reflected in 3 years Annual Reports and Balance Sheet.

3.   The Institution must have adequate space with atleast 1 training hall of 20’ X 15’ dimension alongwith required furniture, computer and audio visual equipments.

4.   It should be located on a metalled road and should be easily approachable.

5.   The organization must have proper mandate to run the particular training programme.

6.    The organization must not be black listed with any Govt. Department or Financial Institutions.

Institutions located in backward and far-flung areas will be given preference in selection of Franchise.

4.            BENEFIT TO FRANCHISE INSTITUTIONS

1.   Providing Quality Training and “Govt. of India Institutions Certificate” to trainees, which will result in enhanced business opportunities and will facilitate credit from Banks/Financial Institutions.

2.   Increase the turn over/profit of the Institution.

3.   Limitation of ups and downs in business and likely upward growth.

4.   Tremendous word of mouth publicity by trainees.

5.    Improvement in brand building.

The MOU will initially be signed for 3 years on yearly basis as laid down here under. However, the agreement can be terminated by NIESBUD in case of violation of the terms by the Franchise Institute after giving due show cause notice. It can also be terminated by mutual consent.  Termination of this Agreement for any reason what so ever, Franchises shall stop forth with using the NIESBUD name, logo, trade name, trademark etc. in its announcements, advertisements, correspondence or any other documentation and settle with in 30 days its financial obligations to NIESBUD.

Franchise appointed shall not have any claim for refund, in part and in full, of any fees or payments towards cost of software or other material made to NIESBUD.

Upon termination of this Agreement, NIESBUD will have right to announce publically, cancellation of authorization at the risk and cost of Franchise, in any manner, the NIESBUD, may consider/deem proper.

The agreement shall initially be valid for a period of one year starting from -----------------------to  ------------------- provided Licence fees, other dues and obligations are paid, complied with, in time as provided hereunder by the Franchiser. The agreement may be reviewed and extended for a further period of one year or more by mutual consent with the same conditions or with additions, alteration etc. as may be deemed proper by NIESBUD i.e. Franchiser.

            The following eligibility criteria will be applicable for a Franchise while making an application to franchiser, the NIESBUD : -

(i)         The Franchise must be an institution registered under the law of land, the Registrar of Companies, the Registrar of Firms and Societies, an NGO formed/promoted by Government, Central or State, legally Registered Corporations, Registered voluntary educational or Social institutions and the like, as may be recognized/ approved by NIESBUD, the Franchiser.

(ii)        The Franchise must have worked in the related field, for which applying, successfully atleast for the last 3 years (Financial years)

(iii)       The Franchise is also owner or legally occupier of the premises where the proposed centre is to be located/situated.  It must have lawful permission to operate the centre and undertake the responsibility or running operating and execution of the programmes assigned by NIESBUD, the Franchiser.

(iv)       All expenditure to be incurred and other responsibilities obligations to be discharged for setting up the Franchise centre, will be the responsibility of the Franchise and the Franchiser will have no obligations towards it.

(v)        The layout design, internal arrangements in the building premises may be suggested by the Franchiser to Franchise for proper and useful execution of programmes.

(vi)       In the event, Franchise fails, neglects or refuses to complete the centre and provide all necessary systems, equipments and articles as prescribed by the Franchiser within time prescribed and to the full satisfaction of the Franchiser, the Franchiser will have right even to forthwith terminate the agreement and forfeit all the fees and charges received from Franchise.

(i)         The Franchiser may provide to Franchise printed literature brought out from time to time against payment of actual cost.

(ii)        The Franchiser while participating in exhibitions or while releasing advertisements will include names and addresses of Franchise too for which all expenses are to be shared/borne by the Franchise.

(iii)       The Franchise shall seek permission and approval of Franchiser for all related publicity material prepared by it at its cost alone.

            The Franchise may use NIESBUD’s name, logo, trade name only for the purpose of approved training programmes, as laid down in this agreement.

The Franchiser shall in terms of the licence granted by it to the Franchise under in terms of this Agreement hereby provide/shall provide to the Franchise the following: -

(i)         The right to use trade name, logo of Franchiser only for the purpose of approved and accepted training programmes, as may be enforce from time to time in field of Computer, Entrepreneurship Development Programmes and other skill related ones as may be decided by the Franchiser.

(ii)        The part/share of resources by way of fees/charges payable by trainees/students enabling the Franchise to impart training properly.

(iii)       Techno – professional know how to enable the Franchise to maintain and operate centre and for the conduct of all matters relating there to, in the manner laid down with said operating products, other than the conduct of training courses.

            These shall include, but not be limited to the manner in which the Franchise shall maintain the accounts of the centre, all reports relating to maintenance of the centre, the manner in which the activities shall be conducted, the promotional companies and the areas in which they shall be conducted, the terms and manner of employment of the teaching faculty and other staff.

(iv)       The Franchiser shall from time to time provide to the Franchise such services, information, know how etc. for improving the technique, methodology to conduct the programmes.

(v)        In the event, Franchise fails to remit the payments due, in time, make appointment of staff approved by Franchiser, reimbursement of cost, charges, fee etc. make payments to the persons directed by Franchiser and committing violations of any part of the agreement, the NIESBUD (Franchiser) will have right to terminate the agreement at the risk and cost of the Franchise and may also claim damages/losses from him.

(vi)      Other rights and obligations of Franchiser will be detailed at the time of preparation of agreement by our solicitor, keeping all the time hands of the Franchiser safe, up and strong.

(i)         Franchise shall be responsible to distribute detailed course material, courseware etc., on demand, free of cost to every student in each course.

(ii)        Franchise shall :

·   Submit bi monthly reports about all the conducted programmes including topics covered and faculty employed.

·   Send Feed back of Training from Participants.

·   Get trainers Accreditated from NIESBUD for programmes.

·   Prevent misuse of joint certificates.

·   Not to dispose in any manner the training materials provided by NIESBUD without NIESBUD’s authorization.

·    Not to use joint certificates for any other training apart from those Accreditated by NIESBUD.

·    Not make any alteration/addition in the syllabus, courseware;

·    Not deviate to change examination procedure as approved by NIESBUD;

·    Not make use of course material in any other courses offered by it or their/his agents elsewhere.

·    Not to run parallel courses approved by NIESBUD, itself or its agents else where;

·    Not to use name, logo etc. except in courses approved by NIESBUD.

·    Participate in the activities of the Franchiser and no strings attached in any form or capacity.

·    Mention name of the Franchiser on the Letter Head, accounting records, returns, reports etc. relating to only approved courses.

·     Allow the officers of the Franchiser, CA, CS and other professionals, experts deputed, for examining accounts, conducting inspections, going through records, documents, a asset statement etc. at all reasonable times and the same would be made available to them without any delay or hitch by the Franchise.

·    Maintain complete secrecy of the training and other related confidential matters and will not disclose any thing without the approval/permission of Franchiser.

·     Commence and conclude the course as per approved scheme of NIESBUD without any deviation of any kind.

·     The Franchiser may forthwith terminate the agreement in the event the Franchise questions, disputes, threaten or attacks the validity, right or title of the Franchiser in its training resources, technical know how, trade name logo, trademarks, service name and other signs, marks and designs.

·     Pay all the taxes, liabilities etc. due to it itself. Franchiser will have no responsibilities towards responsibilities of Franchise.

 
12.            ADMISSION, EXAMINATION, EVALUATION AND AWARD OF CERTIFICATES

(i)      The Franchise shall strictly follow the rules set by NIESBUD on admission, examination, evaluation and award of certificates.  The trainee/students shall be allowed to take examination only after full payment of fee charges, fine etc. are made.

(ii)     The authorities of NIESBUD shall ensure setting up of question papers, their evaluation alonwith holding practical exams wherever needed.

(iii)     The Franchise shall make announcement of course as way be decided by the NIESBUD.

(iv)     The NIESBUD authority constituted with atleast one representative of the Franchise will set norms for students/trainees with regard to attendance, leave, performance, behaviour etc. and fix ‘ norms for gradation and award of certificates.

(v)     The Franchise shall maintain a permanent record of scholar Register containing all relevant particulars for verification by NIESBUD.

13.            DISPUTES

(i)      Any dispute between Franchiser and Franchise shall as far as possible be resolved/settled by mutual negotiations between the heads of two organizations and their decisions hall be final and binding on both the organizations.

(ii)     For disputes which could not be settled mutually shall be referred to Executive Director, NIESBUD as Arbitrator, whose decisions shall be final and binding on both parties.

(iii)    For sending notices and following other judicial procedure, the normal practice of Arbitration and Cancellation Act 1996 shall be followed. The venue of this Arbitration shall be NOIDA, District Gautam Buddha Nagar, U.P.

14.            TAXES

            Both the parties hereto shall be liable to pay their separate income tax and other taxes/levies and neither party shall be called upon to discharge any such liability on behalf of other party.

15.            JURISDICTION

            This agreement shall be deemed to have been made of NOIDA (District Gautam Buddha Nagar) and it is specifically agreed that courts at Gautam Buddha Nagar (Uttar Pradesh) alone shall have jurisdiction.

16.            AMENDMENTS

Except as otherwise provided in this Agreement, the provisions of this Agreement may be amended at any time by mutual written consent of the parties there to.

17.            REVIEW

            During the first year of Agreement the NIESBUD shall arrange a review meeting of the Franchises every Quarter to assess their performance standards and achievements in comparison to the norms laid down.