What is franchising?
It is a contract based on on-going collaboration between a franchisor, a subject with considerable experience in a particular industrial, commercial or service sector, and a franchisee, an independent businessman who wants to increase the turnover and profitability of his company.
What is a franchisee?
He is a businessman who joins a franchising system by means of a contract, and undertakes to manage his sales outlet according to the terms set out in this agreement.
What is a franchisor?
This is a company or businessman that has set up a distribution system and, passing on his know-how to others, has assumed the responsibility of controlling and coordinating the proper functioning of the system, providing goods and services in return for a certain consideration.
What is the initial fee?
This is a sum paid by the franchisee to the franchisor: a form of non-refundable payment or deposit designed to contribute to the organisational expenses involved in setting up a franchise. The type of affiliation contract used by Coin does not envisage such entry fees.
What is know-how?
It is a body of technical and commercial knowledge relating to the production and marketing of a product or service.
What are royalties?
They are a form of remuneration, proportionate to the amount of business carried out by the franchisee, which is paid to the franchisor to recompense him for all the services provided, including rights to the emblem and brand. The type of affiliation contract used by Coin does not involve any such royalties, or percentages on turnover.
What is the forecast income statement?
This is a scalar document which enables you to compare anticipated revenue and costs, and so evaluate the financial impact of the business project and to test its profitability in an analytical way. It contains the following distinct macro-categories: expected revenue from sales, the cost of sales, and running costs. When preparing a feasibility plan, Coin draws up a forecast income statement, taking account of the characteristics of the market, the sales potential, and the financial resources of the franchisee.
What is meant by commercial planning?
Coin has a form of document which enables it, through an analysis of consolidated and predicted sales, to arrive at an estimate of the purchasing budget the affiliate needs to have in order to achieve the sales targets set out in the forecast income statement.