Franchisee Deposit Refund Policy

Purpose and Objective

The Go4Medicare Franchise Deposit Refund Policy has been designed to reward long-term franchise participation, encourage sustained patient enrollment, and create a performance-linked pathway for the return of the franchise security deposit. Unlike conventional franchise models where the security deposit remains locked for the entire tenure of the agreement, Go4Medicare provides a structured mechanism through which franchisees can progressively recover their deposit based on successful patient closures and business performance.

This policy aligns the interests of both the Parent Company and the Franchisee by rewarding active franchise development, patient acquisition, and successful treatment plan enrollments. The refund mechanism is directly linked to patient closures and is structured to provide higher refunds during the initial growth phase of the franchise. The policy has been developed to create a fair and transparent partnership model where franchisees are rewarded for actual business outcomes rather than merely maintaining an operational presence. By linking deposit recovery to measurable performance milestones, franchisees benefit from improved cash flow, reduced investment risk, and enhanced return on investment while simultaneously contributing to patient health outcomes and network growth.

Key Highlights

• 100% Refundable Security Deposit – Entire deposit can be recovered through achievement of defined patient closure milestones.
• Performance-Linked Refund Structure – Deposit recovery is directly tied to actual patient enrollments and business growth.
• Higher Early-Stage Refund Benefits – Larger refund amounts are provided during the initial closure slabs to accelerate investment recovery.
• Dual Financial Advantage – Franchisees earn both revenue-sharing income and deposit refunds simultaneously.
• Transparent & Measurable Process – Clearly defined closure-based slabs ensure predictable and objective refund calculations.

Franchise Deposit Structure

To secure exclusive territorial operating rights, access to the Go4Medicare business ecosystem, technology platforms, centralized clinical support, training programs, patient management systems, marketing assistance, and ongoing operational guidance, each Franchisee is required to maintain a refundable Franchise Security Deposit. The security deposit serves as a commitment towards active business development, adherence to brand standards, and achievement of mutually agreed performance objectives. Unlike traditional franchise deposits that remain locked throughout the agreement period, the Go4Medicare model incorporates a structured refund mechanism that enables Franchisees to progressively recover their deposit based on patient enrollment performance.

Annual Target-Based Deposit Framework

The Franchise Security Deposit is linked to the annual patient enrollment commitment agreed upon between the Franchisee and the Parent Company. As a general principle, the security deposit is calculated using the following guideline:

Security Deposit = Annual Patient Closure Target × ₹2,000

This approach ensures that the security deposit remains proportionate to the business opportunity, territory potential, and expected patient acquisition commitments.

Minimum Franchise Commitment

To maintain operational viability and ensure adequate market penetration, every franchise agreement shall be based on a minimum annual target of 100 patient closures. Accordingly:

• Minimum Annual Patient Closure Target: 100 Patients
• Security Deposit Per Target Patient: ₹2,000
• Minimum Franchise Security Deposit: ₹2,00,000

The actual annual target may vary depending on territory size, population demographics, diagnostic center capacity, market potential, and mutually agreed business objectives.

Contract Duration and Annual Renewal

The Franchise Agreement is structured around annual performance commitments. Each contract period carries a minimum patient closure target that must be achieved during the contract year. Upon completion of the annual term, the agreement may be renewed based on:

• Achievement of agreed performance targets.
• Compliance with operational and brand standards.
• Continued business viability within the territory.
• Mutual consent of both parties.

The deposit refund mechanism continues to operate throughout the franchise relationship, with refund credits linked to actual patient closures achieved during the contractual period.

Purpose of the Security Deposit

The Franchise Security Deposit is intended to:

• Secure exclusive territorial franchise rights.
• Demonstrate long-term business commitment.
• Support operational onboarding and training investments.
• Protect intellectual property, business systems, and brand assets.
• Encourage sustained patient acquisition and business growth.

Key Highlights

• Target-Linked Deposit Model – Security deposit is calculated at approximately ₹2,000 per annual patient target.
• Minimum 100 Patient Commitment – Every franchise agreement is based on a minimum annual closure target of 100 patients.
• 100% Refundable Through Performance – The entire deposit can be progressively recovered through the approved refund policy.
• Scalable Business Structure – Higher territory targets can be accommodated through proportionate deposit adjustments.
• Annual Performance-Based Renewal – Franchise continuation and future expansion opportunities are linked to target achievement and operational compliance.

This unique deposit structure ensures alignment between investment, business potential, and performance expectations while creating a fair and transparent framework for long-term franchise growth.

Performance-Based Deposit Refund Model

To encourage early business growth and reward active franchisees, the refund structure follows a declining slab methodology. Under this model, the Franchisee receives a higher deposit refund per closure during the initial stages of business development. As cumulative patient closures increase, the remaining deposit balance progressively reduces until the entire deposit amount has been refunded.

Deposit Refund Slabs

Trigger Events for Payout

Deposit Refund Payout

The corresponding deposit refund amount applicable to the closure slab is released simultaneously upon successful enrollment and official closure recognition by the Parent Company. A patient closure is deemed complete only when:

• Patient enrollment formalities are completed.
• Applicable treatment fees are received.
• The patient is officially onboarded into the treatment program.
• All compliance and documentation requirements are fulfilled.

Advantages of the Refund Model

• Early Deposit Recovery: Higher refunds during the first 60 patient closures allow franchisees to recover a substantial portion of their investment much earlier.
• Improved Cash Flow:  Regular refund payouts support working capital requirements and reduce capital lock-in.
• Performance-Based Rewards: The more successful patient enrollments achieved, the faster the franchisee recovers the deposit.
• Dual Income Opportunity: Franchisees earn both revenue-share income and deposit refunds simultaneously.
• Reduced Investment Risk: The structured refund model significantly lowers long-term financial exposure and improves return on investment.

Taxation and Regulatory Compliance

All payments, revenue shares, incentives, refunds, commissions, and other financial disbursements shall be subject to applicable taxation laws, including Tax Deducted at Source (TDS), GST provisions, and other statutory deductions as mandated by government authorities from time to time. The Franchisee shall be solely responsible for complying with applicable tax filings and regulatory requirements related to such income.

Company's Rights and Policy Amendments

The Parent Company reserves the right to revise treatment plan pricing, promotional structures, operational processes, and business policies in response to market conditions, regulatory changes, or business requirements. However, any modifications affecting existing Franchisee financial entitlements shall be communicated through official written notifications and governed by the terms of the Franchise Agreement.

Conclusion

The Go4Medicare Franchise Deposit Refund Policy is designed to create a unique "Earn While You Recover Your Investment" model. Rather than keeping the franchise deposit locked indefinitely, the policy rewards active business development by gradually returning the entire deposit based on patient closures while simultaneously providing ongoing revenue-share earnings. This creates a low-risk, performance-driven partnership that aligns franchise success with long-term business growth and patient outcomes.