What are the checks to be ensured by AD Category-I banks/ADs Category-II/FFMCs while conducting due diligence of Franchisees before appointing them?

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..... business activities of the franchisee/ its position in the area (ii) minimum Net Owned Funds of the franchisee (iii) Shops & Establishments / other applicable municipal certification in favour of the franchisee (iv) verification of physical existence of location of the franchisee, where restricted money changing activities will be conducted (v) conduct certificate of the franchisee from the lo .....

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..... s should be done on a regular basis, at least once in a year. The franchiser should obtain from the franchisees proper documentary evidence confirming the location of the franchisees in addition to personal visits to the site. The franchiser should also obtain a Chartered Accountant's certificate confirming the maintenance of minimum Net Owned Funds of the franchisee, i.e., Rs.10 lakh on an on .....

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