Franchise Right:

Exclusive rights to run company-owned business operations to sell and service current and future Calfarme products according to the Calfarme Business System in the territory, covering the entire country or a regional delineation of a big country. 

Franchise Period:

The initial franchise period is 5 years, plus a renewable option of another 5 years. There is a renewable fee equivalent to 10% of the average of the 4th year sales, and this is payable 6 months before the effectivity of the renewed agreement.

Franchise Fee:

A total franchise fee ranges from S$100,000 to S$300,000 net payable per territory with the amount depending the size and potential of the territory. 

Business Assignment Fee (Optional):

To takeover a Calfarme business with territorial 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 territory. The payment amount and terms are as follows:

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. 

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.

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.

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.

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:

For all contract service and supply customers which accounting for around 80% 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.

The above package demonstrates Calfarme’s commitment to franchisees who want to partner with us in tapping the tremendous potential in washroom hygiene.

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, please complete and submit the Franchise Enquiry Form to us now.