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OX Franchise System

OX Platform Pvt Ltd (Platform owner)​

  • Owns platform software, data, user/accounts, transaction flow, API, branding related to the digital product.
  • Collects all customer payments (bookings, retail sales) and executes settlements per rules.
  • Provides role-based dashboards for Franchisor, Master, Subs, and reconciliations.
  • Holds transaction logs and audit trail; grants data access per contractual rules to OX Franchise, Master, Subs, and procurement entities.

OX Franchise Pvt Ltd (Franchisor)​

  • Sole role: system manager — defines franchise model, playbooks, SOPs, quality standards, training, audit rules, governance & approval authority over Master/Sub lifecycle (onboarding, suspend, terminate).
  • Approves Master-submitted Sub applications and any suspension/termination decisions. Enforces brand/IP & compliance.
  • Receives royalties/fees per settlement from OX Platform.

Master Franchisee (Taluk / OX Park / Hub)​

  • Holds territorial license; responsible for territory-level governance, SOP enforcement, supervising Subs, local growth, dispute escalation.
  • Does NOT operate or distribute inventory to Subs. Does not collect platform payments (platform handles payments).
  • Oversees Sub onboarding (screens & proposes) but cannot finalize onboarding/suspension/termination without Franchisor approval.
  • Responsible for aggregated reporting to Franchisor, local audits, ensuring Subs use approved procurement channels and meet training requirements.

Sub-Franchisee (service-level operator)​

  • Service-specific operators (Workshop, Spares Retailer, Café, Fertilizer Retail, Booking Centre, Temporary Parking, etc.).
  • Contracted by Master (Master ↔ Sub) but their onboarding/suspension/termination requires Franchisor approval.
  • Purchase inventory directly from OX Inputs Pvt Ltd and OX Spares Pvt Ltd as required.
  • Operates customer touchpoint; receives settled revenue from OX Platform per schedule/settlement rules.

OX Inputs Pvt Ltd & OX Spares Pvt Ltd (Wholesale / Distribution)​

  • Fulfil PO from Subs (and Masters if needed) — maintain pricing, channel terms, credit terms.
  • Integrate with OX Platform for SKU/catalogue, invoicing, and delivery tracking.
  • Subject to procurement policy & approved vendor list maintained by Franchisor (if franchisor mandates a vendor list).

Payment & Settlement Flow (precise)

  1. Customer books/ purchases → payments collected by OX Platform Pvt Ltd (wallet / payment gateway).

  2. Platform applies pre-configured split rules:

    • Withhold for refunds/chargebacks reserve (configurable).
    • Deduct platform fee (if any).
    • Deduct Franchisor royalty / fixed fees.
    • Deduct procurement fees/collection for OX Inputs / OX Spares (if included in transaction).
    • Settle remaining net to Sub and Master (if Master is owed a commission).

  3. Settlement schedule (recommended):

    • Daily summary + T+1/T+2 settlement to bank accounts (can vary by entity & region).
    • Monthly reconciliations with detailed reports (by transaction).

  4. Escrow/hold rules:

    • Platform may hold % for X days for dispute windows, warranty, or when onboarding/sub probation applies.
    • Chargeback reserve for card disputes or refund windows.

  5. Reconciliation & audit:

    • Platform provides downloadable ledgers, invoice-level settlement, and APIs to OX Franchise for auditing.

  6. Cash transactions:

    • Allowed only if platform-enabled (cash-on-delivery collection and deposit to platform account ASAP) — must be reconciled daily through platform POS / upload flow.

Procurement & Inventory rules (clarified)

  • Subs place purchase orders directly with OX Inputs Pvt Ltd / OX Spares Pvt Ltd via the platform (preferred) or approved offline channels (emergency).

  • Masters: do not perform distribution; their role is supervisory: ensure Subs purchase from approved distributors, train Subs on inventory standards, and perform spot checks for quality/stock/brand compliance.

  • Procurement Agreements: OX Inputs & OX Spares must have channel terms that allow:

    • Direct invoicing to Subs
    • Credit or pre-pay terms per Master/Sub credit score
    • SKU-level catalogue in a platform with batch/serial tracking for warranties

  • Stock/consignment option (optional): if a Master wants to host consignment inventory at the Hub, that would be a separate commercial arrangement with OX Inputs/OX Spares (not a default distribution right). If used, it must be contractually defined (who owns stock, insurance, replenishment triggers).

Onboarding, Suspension & Termination (explicit approval gate)

Process (Master initiates, Franchisor decides):

  1. Master screens candidate Sub and submits an application packet via a platform.

  2. Franchisor review (platform notifications) — decision must be provided within defined SLA (e.g., 7 business days). Options:

    • Approve (with or without conditions)
    • Approve with a probationary period
    • Reject (with grounds)

  3. If approved → Master executes Sub Agreement and Sub is activated on a platform (account provisioned).

  4. Suspension/Termination:

    • Master can propose suspension/termination for cause (fraud, repeated SLA breach).
    • Franchisor must approve any suspension/termination before a platform disables Subaccount.
    • Emergency suspension: Master & Franchisor should have a fast-track emergency clause allowing temporary suspension by Master with immediate Franchisor notification and Franchisor confirmation within 24–72 hours.

Audit & Appeals

  • Franchisor audits can mandate suspension if independent audit fails.
  • Sub may appeal through an arbitration/dispute clause defined in agreements.

Contract & clause recommendations (short templates / extracts)

Master Franchise Agreement — relevant excerpts​

  • Onboarding approval clause: “Master may nominate Sub candidates. No Sub shall be considered ‘onboarded’ until written approval is provided by Franchisor via the Platform or written notice. The Franchisor shall grant or withhold its approval within 7 business days, or it shall be deemed [approved/declined — choose].”
  • Supervisory duty clause: “Master shall supervise Subs, ensure compliance with SOPs, and shall submit fortnightly compliance reports via Platform. Master shall not operate Subs’ service outlets unless separately contracted.”
  • Platform settlements clause: “All customer payments shall be collected by OX Platform Pvt Ltd and settled monthly/daily as per the Settlement Schedule contained in Schedule X. Master shall not collect platform payments except where expressly permitted by Franchisor and Platform in writing.”

Sub-Franchise Agreement (Master ↔ Sub) — key excerpts​

  • Procurement obligation: “Sub shall procure all mandatory SKUs and approved brand items directly from OX Inputs Pvt Ltd or OX Spares Pvt Ltd, via the Platform. Any purchase from non-approved vendors constitutes material breach.”
  • Franchisor approval & compliance: “Sub acknowledges and agrees that onboarding, suspension, or termination decisions require Franchisor approval. Sub must accept Franchisor audits and remediation as per SOP.”
  • Settlement & remuneration: “All customer payments shall be processed via OX Platform. Platform settlements will pay Sub net amounts as per the Settlement Statement. Sub must reconcile daily.”

Platform Operator Agreement (OX Platform ↔ Franchisor / Master)​

  • Define transaction fee, settlement rules, dispute hold periods, role-based access, data access rights, escrow rules.
  • Define data ownership: OX Platform owns transaction & platform data; franchisor has read/write APIs for aggregated data per contract.

Procurement Agreement (OX Inputs / OX Spares ↔ Platform / Subs)​

  • Define catalogue rules, invoice generation, delivery SLAs, return/warranty, pricing, credit terms, dispute resolution.

Governance, Audits & Data (practical)

  • Platform is source of truth: all bookings, payments, invoicing, and settlement audit trail must be stored in platform ledger. Franchisor & Masters have access per role & permissions.
  • Audit rights: Franchisor can trigger audits; platform will provide transactional exports & evidence (photos, signed job receipts).
  • Data ownership: OX Platform owns raw platform data. Franchisor gets aggregated/role-based data for franchise governance. Subs/Masters get their entity-level data.

KPIs & compliance (adjusted)

Master-level KPIs

  • % of Subs approved within SLA (time-to-approval metric reflects Franchisor turnaround)
  • % Sub compliance (audit pass)
  • Territory revenue growth (platform-reported)
  • Time-to-resolve escalations (measured on platform)
  • % of transactions settled on-time

Sub-level KPIs

  • SLA adherence, first-time-fix, NPS, procurement compliance (only from OX Inputs & OX Spares), reconciliation accuracy.

Pilot & operational implications (short)

  • Platform readiness is essential (settlement, vendor catalog, role-permissions, approval workflow for Franchisor).
  • Pilot must include: Master → Sub onboarding flow with Franchisor approval, platform payment collection & settlements, direct procurement POs from Sub to OX Inputs/OX Spares, and reconciliation tests for cash/digital.
  • Suggested pilot checklist item: test emergency suspension workflow (Master initiates, platform disables account only on Franchisor confirmation or after emergency hold rule).

Quick checklist of technical features Platform must support (so contracts can mandate)

  • Role-based approval workflow (Master initiates, Franchisor approves/rejects)
  • Transaction ledger + per-entity settlement breakdown
  • Escrow/hold & release logic with configurable windows
  • Vendor/catalogue module for OX Inputs & OX Spares (PO creation & invoicing)
  • Audit export (CSV/JSON) and certificate of completion upload for jobs
  • Notification & SLA timers for approval/termination actions
  • API access for Franchisor & procurement entities

Sample short clause for Franchisor approval (copy-paste)

Franchisor Approval of Sub-franchisees. “Notwithstanding anything to the contrary in the Master/Sub Agreements, the Master shall obtain the prior written approval of OX Franchise Pvt Ltd before onboarding, suspending, or terminating any Sub-franchisee. Requests for approval shall be submitted via the OX Platform and OX Franchise shall respond within seven (7) business days. In emergencies, Master may provisionally suspend a Sub for up to seventy-two (72) hours, subject to immediate notification to OX Franchise and mandatory written approval for continued suspension or termination.”