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The Franchise and Initial Fees

The master franchisor will only enter into a franchise agreement with potential master franchisees that have a proven financial strength to enter into such business venture. Therefore, the master franchisor seeks a qualified master franchisee for the exclusive rights to operate a franchise in a given country and who has the ambition and proven financial resources to further sub-franchise to other potential franchisees.

For each additional unit (the sub-franchise unit), the master franchisor shall receive an amount of € 40'000 from franchisees to cover all costs related to a site and market study, pre-opening expenses, management and staff training, and the issuance of operating and training manuals. This sum shall be paid to the master franchisor until the master franchisee has acquired the above stated ‘know-how’ to consult the individual operations on his/her own. From that point on the master franchisee shall receive the € 40’000 from any new franchise units and will be responsible to aid them in the opening of their restaurants.

The master franchisee shall pay the master franchisor a Lump Sum amount that shall be determined according to the location and size of the operation in the respective country. Simultaneously, this gives the master franchisee the unlimited rights to further develop the number of business units. In return, the master franchisee shall be entitled to receive 5% of the Gross Sales from each unit (Gross Sales minus applicable Value Added Tax - VAT), from which 4% shall be retained by the master franchisee and 1% will be handed over to the master franchisor.

 

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