- WHAT IS FRANCHISE?
Franchise is a business method that the producer or the owner of a monopolistic product – service assigns the business right of the product or service in a specific area to another person.
The franchise business only began to develop and be successfully applied in America. This is the model of business cooperation of “bilateral profit”. The recipient needs the fame of the assigner for easier success. On the contrary, the assigner needs the success of the recipient for the strength and development of the system.
- INTRODUCTION OF TRUNG NGUYEN FRANCHISE SYSTEM:
Trung Nguyen Coffee is the first Vietnamese company that has applied the model of franchise. Being active and creative, Trung Nguyen has established the franchised shop system nationwide and also in Japan, Singapore, Thailand, Cambodia, Ukraine, German and China with a special style of coffee enjoyment.
With the business method of franchise, Trung Nguyen coffee products, which are produced by the best coffee beans from the highland of Buon Ma Thuot in conjunction with modern technologies and company’s own skills, were introduced to everybody nationwide and worldwide.
Today, with about 1,000 franchised coffee shops, Trung Nguyen always brings people Vietnamese coffee of top quality in any Trung Nguyen coffee shops.
e Development:
Chart : The development of Trung Nguyen shop system during the years.
- RIGHTS OF THE FRANCHISE RECIPIENT:
When participating in the Trung Nguyen franchise system, the recipient will be given some rights in their business activities:
- Use Trung Nguyen franchise to expedite business activities in a unique location based on the franchise prestige.
- Exploit the tangible and intangible profit from the prestige of Trung Nguyen to:
- Quickly draw customers.
- Reduce risks in business.
- Save time and cost of shop advertisement so as to focus on the business activities.
- Be sponsored some stuffs directly relating to the product. (see details in appendix 1 enclosed in the contract)
- Be discounted when buying products by Trung Nguyen.
- Be favored on the price from the prestigious suppliers of equipment, materials and services…that have contracts with Trung Nguyen.
- Provide necessary trainings for shop operation, including:
- Methods of brewing coffee and tea
- Guidance to choose appropriate music for each kind of shop.
- Provide shops with suitable business model consulting. Support the initial business planning.
- Provide shops with business solutions for more effective operation.
- Consult shop on design, interior decoration in accordance with Trung Nguyen style. Introduce good construction companies and, suppliers.
- RESPONSIBILITIES OF FRANCHISE RECIPIENTS:
At the same time, to ensure the advantageous cooperation procedures with Trung Nguyen, the franchise recipient is responsible for implementing the following regulations:
- A - The wholesaler itself property implements necessary procedures to obtain business permission.
- B - Operate the shop’s activities by themselves.
- C - Fully participate in Trung Nguyen training courses before and after opening the shop.
- D - Commit to carrying out business in accordance with the orientation of Trung Nguyen company.
- E - Follow the design of Trung Nguyen style.
- F - Pay fees as regulated.
- Franchise fee is non-refundable one that a wholesaler has to pay Trung Nguyen to have right of using Trung Nguyen trade name to implement the business as regulated.
- Operational fee which a wholesaler has to pay Trung Nguyen monthly based on rate of monthly total turnover from all kinds of drinks sold by the wholesaler, is non-refundable. This fee together with annual marketing budget of the company will be used for general advertisement activities aiming at drawing attention to the series of Trung Nguyen coffee shops such as promotion, training courses, and new product supports to the wholesalers….
- Deposit: Trung Nguyen will reimburse the deposit in case both sides carry out the contract liquidation.
- G - Not to disclose any information related to Trung Nguyen to a third party, except for serving the necessary purpose of contract implementation, or due to the request of law and authorities.
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