A master franchisee buys our brand development rights of an exclusive territory. With accumulated know-how from a franchisor(MoM’s Touch) and well known local information and an ability to act, the key responsibility is to develop the system to manage a sub franchisee by providing the guidance and training to educate him/her and make him/her to understand the business. When establishing the business, the main responsibility for the master franchisee is to expand the business by recruiting more sub franchisers.
To explain about the process of establishing a franchisee business overseas, there will be modification of 4P(product, price, place, promotion). For doing this, the general research about the country, F&B market, and related laws and regulations should be done and then on site research followed. Based on the collected information, we are going to build a brand concept applied to the market. From the concept, location, size of stores, and the number of employees will be decided.
Term of agreement is 10 years. Detailed conditions can be negotiable depending on a partner’s capacity.
Royalty will be 3% to 5% of gross sales.
We provide training, market launch planning, market-specific supply chain planning, onsite start up and training of the first unit, and ongoing operation consultation.
To opening, it takes approximately 34 weeks. However, the period can be adjustable depending on many factors like a partner’s capacity, legal issues, and market situation.
Yes, there is flexibility because each market needs its own terms which apply to its market. However, we strongly advise a master franchisee not to put much burden on sub-franchisees.
We offer building and site criteria and ask a master franchisee to find the proper one which meets the condition. For setting-up the business, we offer training programs and on-site support for the first store and assist building the whole franchising system.
A master franchise has a responsibility to find an advertising agency and plan events. We asa franchisor assist finding appealing points to customers and onsite support for the opening week.
A master franchisee is responsible for advertising in its territory.
Am I obliged to undertake advertising and promotions of our own, at our own expense? If so, what help do you provide?
Yes, it is. A master franchisee is required to report the marketing plan. We review it and cooperate to build a feasible and effective plan. Also, we provide needed photos and materials.
Where is the product to be sold coming from? From Jincheon Distribution Center or New Distribution Center in Malaysia?
To stable the supply chain, it is best to receive goods from local market. In the process of developing the supply chain, there are many options such as having our own distribution and renting an existing distribution center.
We offer support to front line operation and cost improvement initiatives. Moreover, we provide consultation for further issues during operating the business.
As soon as the first store and the system are stabilized, we advise to start recruiting sub franchisees. However, it is needed to check laws and regulations on franchising. In some countries, even though a franchisor wants to recruit franchisees, the government asks the franchisor/master franchisee to run a company-owned store for certain period to have a right for recruiting franchisees.
Shall we be permitted to see the operations and procedures manual before we sign the franchise agreement?
No, we do not open the operation manual for confidential reasons before signing the agreement.
In terms of our trading area, will you protect my interests to the best of your ability? What is the proximity of competition and other franchisees?
Under a master franchisee agreement, the territory is a whole country and exclusive. Therefore, the term itself protects each partner’s trading zone.