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SINGAPORE DISTRICT FRANCHISE OPPORTUNITY
Calfarme (Singapore) Pte Ltd, is engaged in the business of developing, distributing and supplying of washroom hygiene products, equipment & services, and has developed a unique and distinctive system for marketing and distributing its exclusive range of products and services. To support its present operations and realise the full potential of the local Singapore market, Calfarme now offers sales and service franchises which can be tailored to individual requirements.
There are 16 district territories already franchised out, while another 64 territories are available. A franchise unit comprises of one of these territories, defined clearly by the Singapore postal code system.
To takeover a Calfarme business with sales/service franchise rights, the capital requirements include the payment of a franchise fee and the business assignment fee of the current Calfarme business in the subject district territory. The payment amount and terms are as follows:
Franchise Fee:
A total of $ 40,000 payable per territory with upfront payment of $20,000, and the remaining balance to be financed by Bank.
Business Assignment Fee:
The amount is determined by the annual value of the current contract services business in the subject territory plus the total of direct purchase business in the last 12 months. The business assignment fee is payable on signing the franchise agreement.
The fee varies from territory to territory, and franchisees with different investment budgets (high or low) can choose their territories accordingly.
Should after 12 months of operation, the Annual Business Base of the franchise business (i.e.annual value of contract services and direct purchase sales for the last 12 months) will be less than that at the start, then Calfarme will give a refund to the franchisee for the difference. Again for this portion, bank financing can be applied for.
As long as the franchisee agreement is not breached, the franchisee has the option of giving up his franchise rights three years after commencement of the business, whereupon Calfarme shall be obligated to refund the original business assignment fee to the franchisee.
Franchise Period:
The initial franchise period is 10 years, plus a renewable option of another 10 years. There is a renewable fee equivalent to 10% of the average of the 8th and 9th year sales, and this is payable 6 months before the effectivity of the renewed agreement.
Royalty:
A total of 12% of net sales turnover is payable to Calfarme as royalty fee to cover ongoing management, logistical and sales support, and advertising and promotions contribution.
Rights:
Exclusive rights in the subject territory to sell and service current and future Calfarme products according to the Calfarme business system.
Calfarme provides superior support to its franchised business. If such support is costed out, these will more than justify the franchise fees and royalties paid to Calfarme.
Sales Support:
While the franchisee has primary responsibility for his sales, Calfarme's own sales staff will be deployed to obtain new business, and all these will be credited as part of the franchised business sales. For any business other than tender contracts developed and obtained by Calfarme, the Franchisee need only to pay for the regular commission normally paid to the Calfarme sales staff.
Product Supply Support:
For contract service customers, accounting for around 70% of the business, Calfarme will provide the required dispensers, equipment or spare parts, free of charge to the Franchisee both for installation or repair requirements. This arrangement is also true for the contract service customers assigned to the Franchisee.
Working capital is therefore reduced and business profitability enhanced.
Training Support:
Initial and ongoing training to cover product knowledge, installation and servicing procedures and customer service.
Business Support:
Other Arrangement:
Subject to agreement. depending on Calfarme requirements and the Franchisee's agreement, the Franchisee may act as a Service Agent for Calfarme specified periods for Calfarme customers outside but adjacent to the franchise territory. For such work, the Franchisee will receive payment equivalent to 20% of the Contract Service amount or $0.70 per serviced dispenser whichever is lower.*
With this scheme, the Franchisee may opt to employ a service assistant from the start with the costs being covered by the service agent fees paid to the Franchisee by Calfarme. (*Note: In the event the Franchisee needs Calfarme to service any of the Franchisee's own customers, the same rate will apply as payment to Calfarme by the franchisee).
The above package demonstrates Calfarme’s commitment to franchisees who want to partner with us in tapping the tremendous potential in washroom hygiene.
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The Calfarme franchise was officially launched by the Singapore Productivity and Standards Board last year. Calfarme won the Singapore Franchise Excellence Award in 1998 as Promising Franchisor of the Year. |
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Calfarme received another distinction in March 2000 by being one of the first to receive the Singapore Franchise Mark, the franchise industry’s certification standard. |
The company is also an accredited member of the Singapore International Franchise Association and the Malaysian Franchise Association.
To summarize, the Calfarme franchise opportunity offers very good risk / return and affordability profile. Anyone looking for a worthwhile and long term business opportunity should consider coming on board.
We can reveal further information and financial projections during a confidential, no-obligations meeting. Please submit the Franchise Enquiry Form and we can arrange a convenient appointment.
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