Mr. Edward Forrer, as the owner and also the founder of this retail company which started in 1989, runs the business of Shoes and Bags. Now Edward Forrer own 1 outlet in Sydney, Australia and 27 outlets in Indonesia.
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
There are 8 steps you need to go through to become our franchisees.
Step 1: Fill in Application Form
Step 2: First Interview
Step 3: Second Interview
Step 4: Third Interview
Step 5: Last Interview
Step 6: Franchise Agreement
Step 7: Training
Step 8: Opening a Store
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.
1. Initial investment will depend on the above category selected by a prospective franchisee:
o Category A : Rp. 100 million to Rp. 300 million
o Category B : Rp. 300 million to Rp. 600 million
o Category C : Rp. 600 million to Rp. 900 million
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 Initial promotion
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.
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.million
o Category B : Rp. 50.million
o Category C : Rp. 75.million
o Category D : Rp. 100.million
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.
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.
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.
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