Summary of terms for Master Franchisee
Eligibility Criteria An experienced professional who wants to be an entrepreneur and have ambition to establish the business of LPG/Auto LPG in the designated ‘State’.
Business Model A joint venture (LLP Company) will be formed with PLL’s associate concern S.O. Gas Products Pvt. Ltd., MSME company of 1984 with equal partnership.
Investment Total investment in the business required about ₹. 10.00 crore (₹ ten crore) (5 crore from each partner) for setting up bottling plant, office infrastructure, stock and working capital required for the LPG business along with investment required for setting up ALDS in the state under the COCO and CODO scheme.
Franchisee Fee To be paid solely by the Master Franchisee with mutual understanding depending on the state within one year of signing the agreement. Rs.50 Lacs to be paid upfront at the time of signing the agreement as security deposit.
Infrastructure Minimum an office set up (well-equipped office of 93 sq. mtr. area (1000 sq. ft.)approximately.
Land Requirement Land minimum 3 acre (12041 Sq. meters) for bottling plant of 100 MT storage
capacities, covering up to maximum 250 km. radius. (In case the company
already has an operational bottling plant in the state then land is not required.)
Jurisdiction/area At least one designated State or can be more depending on the investment and resources available, agreed before hand with mutual consent.
Statutory requirement All Local requirements for the state.
Rates Change as per International market every month in line with the PSU companies, keeping in mind that presently parallel marketers are not eligible for subsidy in domestic cylinders and they have to pay custom duty also. Even though, there is good scope of establishing business because we hope to get equal platform. For details, refer parallel marketer and customer price list on website.
Responsibility To run the office and plant as per guidelines of the company.
Margin 50:50 profit in line with the LLP after deducting 10% royalty to PLL on the profit of the full business of LPG and Auto LPG in the state.
Extra Income By adding Transport (primary and secondary) for getting bulk LPG from import facility to plant by tankers and distributing of cylinders to associates from plant.
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