EDWARD
FORRER FRANCHISE OPPORTUNITY
Edward Forrer aims at building up a big chain
of a retail company with an excellent customer service in Indonesia
and in the world. To achieve this, every store of Edward Forrer
has standardized concepts, products and services. Edward Forrer
is always interested in meeting people sharing the same idea with
us, having a big ambition of their life, and feeling connected
with excellence.
Edward Forrer is a great place where people
enjoy being physically and spiritually healthy. Regarding to this,
we welcome new members who want to be like us. To day we have
grown our retail business successfully in Indonesia. Our decision
to launch a franchising business strategy is based on our desire
to develop our company. However, more importantly than developing
our company, through this business strategy we want to gather
people who have the same idea of retail business as we.
The steps to be Edward Forrer Franchisee
Do you want to be our franchisees? There are 6 steps you need
to go through to become our franchisees.
Step 1: Fill in Application Form
Application form must be filled in completely by a party intending
to be our franchisee--that is you. The completed application form
will be used by our Development Manager as basis for considering
your application. Our Development Manager office is on 44th Veteran
Street, Bandung, Indonesia.
Step 2: First Interview
After reviewing your application form, the Development Manager
will decide whether or not you are qualified to be our franchisee.
Later on, the Development Manager will contact you to arrange
the first interview. During the interview, you'll be introduced
to Edward Forrer. Detailed information on the franchise opportunity
will probably be discussed. This interview will mainly be a session
through which we and you can learn ourselves each other and decide
if your application falls within our franchise criteria.
Step 3: Second Interview
After the first interview, we believe that you have many questions
about our franchise opportunity. In the second interview, we'll
answer your questions. In this interview we'll also give you Disclosure
Document and Confidentiality Agreement to sign.
Step 4: Third Interview
This is the last interview with the Development Manager. At this
stage, you’ll be given an opportunity to view our general
financial cash flow and balance account. You'll also be introduced
to the activities of Edward Forrer’s franchise business.
In addition to that, you will be provided information on franchise
business law and also an advice from a public accountant in order
to help you decide if you still want to become our franchisee.
Furthermore, you will have your final questions answered in this
interview. At last, we will schedule your meeting with our Operational
Director and owner, Mr. Edward Forrer.
Step 5: Last Interview
The final decision will be made by Mr. Edward Forrer. However,
just before the last interview the Development Manager will make
a final assessment to find whether you are qualified to be our
franchisee or not. You’ll be notified our final decision
in the next meeting.
Step 6: Franchise Agreement
At this stage, Edward Forrer franchise management and you will
reach a final decision and agreement as to your franchisee application
status. You will be informed our last decision. If we decide to
accept you as our new franchisee, you will be asked to sign a
franchise agreement which contains terms and conditions of becoming
an Edward Forrer’s franchisee.
Step 7: Training
Each franchisee have to attend the training in Edward Forrer’s
business operation for a month. You cannot attend this training
without signing your franchise agreement. During the training
you will involve directly with managing our inventory, visual
merchandise design process, serving our customers, customers of
the best retail company. Finishing the training, you are expected
to understand Edward Forrer’s store operation, including
its financial management and planning, staff recruitment, product
selection and ordering procedure, store construction, and etc.
Finally, we guarantee you being able to run an Edward Forrer’s
store in your chosen location with this tailor-made training.
Step 8: Opening a Store
INVESMENT
NEEDED BUSINESS SPACE
1. The amount of business space needed by a franchisee will depend
the category selected by Franchisee. There are three categories
of business space you can choose:
o Category A : 10 to 100 m2
o Category B : 101 to 200 m2.
o Category C : 201 to 300 m2.
o Category D : > 300 m2.
2. The business spaces here have included a store warehouse.
INTIAL INVESMENT
1. Initial investment will depend on the above category selected
by a prospective franchisee:
o Category A : Rp. 100.000.000,00 to Rp. 300.000.000,00
o Category B : Rp. 300.000.001,00 to Rp. 600.000.000,00
o Category C : Rp. 600.000.001,00 to Rp. 900.000.000,00
2. This investment covers expenses for:
o Franchise fee for the first 5 years
o Expenses for training and interior design
o Deposit money to cover/secure 35 % of the total goods value
o Computer & Audio equipments
o First month store operation
o Surveillance Camera
o Traffic Controller
o Employee Presence Record Machine
o Permits
o Initial promotion
o And etc
3. This investment does not include the expense for renting or
buying business space and renovating store building.
4. The authorized capital on the above categories is not to be
submitted to Edward Forrer totally. Some amount of it will be
managed and used by the franchisee to pay for store interior design,
permits, first inventory and other expenses related to preparation
for store opening.
5. Return of Investment (ROI) will take 2 months up to 2 year,
depending on the store location, revenue and Franchisee performance.
FRANCHISE FEE
1. Franchisees are obliged to pay a franchise fee to EDWARD FORRER.
The franchise fee is valid for 5 years. There are three categories
of franchise fees:
o Category A : Rp. 25.000.000,00
o Category B : Rp. 50.000.000,00
o Category C : Rp. 75.000.000,00
o Category D : Rp. 100.000.000,00
2. Franchisees are obliged to repay this fee upon the expiry and
renewal of franchise agreement, which is after 5 years from the
signing of the initial agreement.
ROYALTY FEE
1. Royalty fee is 5% of the monthly gross revenue
2. Promotion fee is 1% of the monthly gross revenue
3. Payment of these royalty and promotion fees is due to the third
day of each month. The fees are paid through a bank transfer to
the selected bank account of PT. EDWARD FORRER.
GUARANTEE
1. Franchisees are obliged to pay deposit money equal to 35% of
the total goods/inventory value lent to franchisees by PT. EDWARD
FORRER. The total goods value here is the total sale value of
the whole goods in the warehouse and on the displays.
2. This deposit money is to secure the franchisee’s first
inventory before franchisees start their first store operation
and this is paid only once. This money must be paid at the latest
1 day before the departure of the first shipment to franchisee’s
store.
3. The deposit money is will be returned to franchisees upon the
expiry of the first 5 year franchise agreement.
LOAN
1. When each goods borrowed from Edward Forrer sold, franchisees
are obliged to pay to Edward Forrer an amount of money equal to
60 % of the sales value.
2. This money is to be paid every Monday, Wednesday, and Friday
to a bank account selected by Edward Forrer:
o Sales revenue on Friday, Saturday, and Sunday are paid on Monday
o Sales revenue on Monday and Tuesday are paid on Wednesday
o Sales revenue on Wednesday and Thursday are paid on Friday.
ORDERING GOODS FROM EDWARD FORRER
1. When franchisees order the goods under certain quantities and
conditions, they have to pay down payment equal to 60% of the
total order. This down payment is to be paid before the goods
are shipped to franchisees.
2. Minimum quantity for this order is 5 items per model and per
color.
3. This term applies only to initial inventory.
INVENTORY AND DISPLAY
1. The quantity of the goods supplied for franchisee’s inventory
and display depends on the category selected previously by Franchisee.
The goods are available in two groups, bags and shoes.
2. Franchisee’s store display arrangement, shoe box size,
and order quantity for their ongoing inventory will definitely
affect the goods availability in their inventory/displays.
3. Supplies of shoes provided for franchisees are available in
three categories:
o Category A : 300 - 2500 pairs
o Category B : 2000 - 3500 pairs
o Category C : 3000 - 4000 pairs
o Category D : minimum 4000 pairs
(source from http://www.edwardforrer.com)
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