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FRANCHISING TERMS AND CONDITIONS

FRANCHISING TERMS AND CONDITIONS

Franchising Terms & Conditions

“Madame Coco”, hereinafter referred to as the «Franchisor», and the Franchise candidate, hereinafter referred to as the «Franchisee».

Contact E-Mail: franchising@madamecoco.com

Franchise Agreement Area: Franchising is provided for whole countries in the form of “Master Franchising”. No franchises are provided on a regional or municipal basis, except for geographically and commercially major countries as Russia, the United States and China.

Location Size: The Franchisor recommends that the sales locations shall have an ideal sales surface area of 400 m², based on local and specific conditions. This size has been optimised according to the existing range of products to be displayed in proper condition in the area. The internal stock room may cover approximately 10% of the total area of the store.

Payment Terms: The payment terms will be cash transfer at the time of the purchase order and will be guaranteed with a Bank Letter of Guaranty.

Royalty Fee: The Franchisor shall determine the Royalty Fee in accordance with the conditions and potential of the relevant country.

Trading Experience: The Franchisee shall perform all the assumed jobs to increase marketing and sales activities. The past retail experience of the Franchisee shall consequently accelerate adaptation to the franchising process and system. This is a matter of preference as it may increase the quality of the work performed.

Staff & Training: The Franchisee shall commit to putting together a well-trained staff for the retail organization. The Franchisor shall provide training to the Franchisee, free of charge, regarding all retail unit management techniques, products, services, systems, and marketing methods distributed throughout the network. The Franchisee and its staff shall attend these training sessions when needed.

Decoration & Fit Out of The Store: The Franchisee shall decorate all retail locations according to the Franchisor’s original concept through the usage of technical drawings, designs, furniture and colours. Stores that do not comply with these specified points shall not be opened. The Franchisee shall pay all decoration costs and related Franchisor staff travel costs during decoration and construction. Store outfitting and construction work are carried out locally and paid for by the Franchisee based on the specifications and approval of the Franchisor. The Franchisor shall commission the manufacture of all store furniture through its designated furniture company and will invoice the Franchisee at a reasonable price. The Franchisee shall pay all related costs and expenses, including transportation, customs taxes and VAT. The Franchisor shall confirm that it will not make more than two (2) trips per store.

Logistics & Delivery of Goods: The determined mode of delivery can be either EXW/FOB or CIF depending on the specific transport options, and the Franchisor shall deliver the products to the Franchisee. The Franchisee shall pay all customs duties, taxes and VAT for the goods imported to the relevant country. In the instance of the CIF shipment option, the Franchisor shall pay the transportation expenses up until the products are delivered to their final destination at customs in the Franchisee’s country and then charge it to the Franchisee. The Franchisee shall pay all transportation and insurance expenses for all processes from the Franchisor’s warehouse to customs in the Franchisee’s country.

Management Information System: The Franchisor uses the V3 Nebim sales software, ERP program. Our stores use and integrate an IBM/TOSHIBA POS with the Nebim V3 software. The Franchisee shall be obliged to use the retail management software determined/approved by the Franchisor in all stores. The Franchisee shall assume the initial investment and further development/maintenance costs.

Product: The Franchisor shall commit to regularly supply products to the Franchisee to have a sufficient inventory to meet consumer demand. The Franchisor’s Planning Department shall conduct the product allocation management and place orders regarding the Franchisee’s sales performance, inventory and KPIs.

Documents related to the Franchise Candidate

    A legal entity or Corporation that submits a franchise application must deliver the following documents to the Franchisor at the address listed below together with a “Business Plan” study.
  • Certificate of Activity
  • Tax Registration Certificate
  • Signature Circular
  • Balance Sheets
  • Company Formation Documents
  • Tel: +90 212 267 27 51-52 Fax: +90 212 267 27 80 E-mail: franchising@madamecoco.com

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