Description
A contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them.
Pre-contractual information document for master franchise candidates
All production can be delocalized... except language production.
The Eurologos Group continues to relocalize the production of multilingual and multimedia services. We are continually setting up new “glocal” (simultaneously global and local) offices in the largest economic centers to which globalized companies must export.
www.eurologos.com
(en 12 languages)
Global communication needs "glocal" languages
EDITING - TRANSLATION - LANGUAGE SERVICES - MULTILINGUAL LOCALIZATION - MULTIMEDIA PUBLISHING
EUROLOGOS-Brussels
EUROLOGOS GROUP
Pre-contractual information document for master franchise candidates
Contents
1. Master franchising within the Eurologos Group
2. The master franchisee's economic duties
3. The master franchisee's pilot and liaison duties
4. The master franchisee's optimization and management duties
5. The master franchisee's leadership duties
6. Remuneration for master franchisees
7. The different scenarios for setting up new franchises
8. Applying to be a master franchisee
www.eurologos.com
EUROLOGOS Group
Franchise Network
2 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
1. Master Franchising within the Eurologos Group
The Eurologos Group is one of the world leaders in the language services sector and bases its strategy on the relocalization of language production. Its objective is, accordingly, to have hundreds of franchise offices worldwide. This venture is being accomplished through "direct franchising" and "master franchising". Whereas franchises set up directly and exclusively by the (Eurologos-Brussels) franchisor still account for the majority of offices in the network, it is anticipated that most franchises will, in time, be created through master franchising.
As Eurologos franchising is international, even global (we are already present on four continents), it is inevitable that the creation and management of franchises in many countries will be undertaken by local master franchisees. This same strategy, for that matter, is used by almost all multinational franchises (it is worth mentioning that franchising constitutes by far the most widely used method of company multinationalization).
Eurologos uses - not exclusively - the system allowing a franchisee to become a master franchisee, enabling the creation and management of new franchises in their country or in neighboring countries.
There is, however, also the possibility for master franchisees not to manage any Eurologos franchises in their own name.
EUROLOGOS Group
Franchise Network
3 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
2. The master franchisee's economic duties
The fact that Eurologos master franchisees are also franchisees puts them in the ideal position to undertake responsibility for increasing, as part of an expansion strategy, what is termed the "marketing density".
Indeed, the global organization of a franchise network inevitably requires the adaptation and diversification, country by country, market by market, of the concept created by the franchisor and set down in the standard franchise agreement.
What are the typical duties of master franchisees?
They can be summarized as follows:
a. Firstly, creating new franchises with unparalleled ease, thanks to the confidence engendered by being of the same nationality and speaking the same language as the prospective franchisee. And, above all, thanks to the fact that they already have their own, fully operational office to be followed as an example. b. Secondly, having an excellent understanding of the local or neighboring markets, as they speak the local language(s), and are familiar with the business trends, legislation, and working culture of the region. c. Thirdly, evaluating the economic potential of the local market, to determine its economic centers, and to calculate the exact number of franchises that can be set up in the country (no more, no less). d. The fourth responsibility is to oversee and set in motion the promotion of their own franchisees' services: a matter that is discussed over the following chapters.
EUROLOGOS Group
Franchise Network
4 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
3. The master franchisee's pilot and liaison duties
A franchise network follows the model proposed by the franchisor (and its head office). It is the prerogative and the responsibility of the franchisor to determine the professional and marketing positioning of all franchise offices. However, with the general impetus and management from the franchisor, important responsibilities regarding setting an example and communication are to be assumed by the master franchisee, who must translate instructions received from head office into their franchisees' activities, while taking account of the specific nature of their markets.
In its role as pilot company for its area of exclusivity, the master franchise sets the standard that the other franchises must follow.
The second duty, of the utmost importance, is to provide a timely account to the franchisor of the results obtained by their chain of franchises. By way of these periodic accountancy reports, a permanent, successful working relationship can thus be developed between franchisor and master franchisee.
EUROLOGOS Group
Franchise Network
5 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
4. The master franchisee's optimization and management duties
Company life is never completely immune to failure, lapses in productivity, misfortune, underhand tactics, or, in short, to any economic mishap. The role of master franchisees is also to prevent and remedy any eventuality that may arise in one or another of their franchises. The reputation and economic performance of their chain of Eurologos enterprises is at stake.
By constantly working in strict liaison and consultation with the franchisor, the master franchisee is prepared for any problem that may arise. If necessary, they facilitate the direct intervention of the franchisor, offering diligent assistance. And, should all remedial measures turn out to be ineffective (as is sometimes possible), the contract with a franchisee may even be terminated. All franchise networks provide for this eventuality in order to ensure their sustainability, and calmly face up to this possibility.
Accordingly, the master franchisee becomes a truly irreplaceable partner in Eurologos' general management by fulfilling an entrepreneurial role that is fully integrated into the upper echelons of the Group's management.
EUROLOGOS Group
Franchise Network
6 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
5. The master franchisee's leadership duties
The primary objective for any multinational company is to assume and retain the leading position in its sector of activity.
To achieve this goal, it must become the leader at an international level (this is the fundamental task of the franchisor). However, each local market must also be conquered to the degree of penetration to which the brand is "entitled": all international brands retain a potential market share in every country, on which they must simply take a firm grip.
Master franchisees justify their position by accomplishing, and overseeing the accomplishment of this task within their areas of exclusivity. This will prove impossible if master franchisees do not themselves act like a leader. Good master franchisees distinguish themselves by the fact that their chain of franchises recognizes their unquestionable leadership and authority.
The franchisor will consider master franchisees to be successful when they interpret, at the highest level, and with optimum results, the destiny of franchises within their markets.
EUROLOGOS Group
Franchise Network
7 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
6. Remuneration for master franchisees
Eurologos remunerates the work of master franchisees on the basis of the Master Franchise Agreement.
This remuneration is set down according to the principle of the "success fee": master franchisees are paid exclusively on the basis of the economic results of their labor. They are usually remunerated with a significant fixed percentage (30-40%), calculated from the amounts actually paid to the franchisor by the franchises in their corresponding area of exclusivity. This income is of two types:
a. Franchise fees to join the Eurologos network, paid by new franchises contracted by the master franchisee b. Royalties paid by franchisees to the franchisor.
The franchisor pays master franchisees, within 30 days, the amounts due following the collection, at regular intervals, of the above income.
EUROLOGOS Group
Franchise Network
8 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
7. The different scenarios for setting up franchises
The search for new franchise candidates may include a number of different scenarios. Here are five: a. First, there is the classic case of an exclusively local translation agency interested in joining the Eurologos network. b. It may also be a pre-press company wishing to incorporate a language element to its activities, and, accordingly, to become a Eurologos franchise. c. Next, there is the candidate for an unspecified franchise (to be created from scratch), with no professional background in the sector, but who is interested in receiving training and will foot the bill accordingly (being trained personally and hiring a translator and/or a graphic designer). This type of candidate is often linked with national franchising organizations. d. Then there are young translation graduates who want to set up their own business: why not do so as a Eurologos franchise? Contact with universities and higher education institutions is required to find them (see document mentioned in the following item). e. Finally, there are promoters/intermediaries: persons (businesses) not directly interested in franchising, but who may be able to find likely candidates in exchange for a "finder's fee" of a few thousand euros, paid by the franchisor upon the signing of the contract. A Eurologos information file (in English, French, German, Spanish, Dutch, and Italian) for "the promoter of a Eurologos franchise" is available, which describes all the stages and means for searching for a franchise candidate.
NB: It cannot be ruled out that master franchises may themselves comprise two or more franchise offices in the exclusivity zone, as set down in their master franchise agreement.
EUROLOGOS Group
Franchise Network
9 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
8. Applying to be a master franchisee
It is not out of the question that, in the future, even a natural person or a company not franchised to the Eurologos network could become a master franchisee. On the international market, it is not uncommon to find master franchisees that are non-franchised companies, but which act in a joint venture with the franchisor to exploit a (often very large) territory.
At Eurologos, it is, in theory, simply the franchisees that apply for the position of master franchisee. In order to sign the Master Franchise Agreement, they must provide the franchisor with a detailed and focused plan, which must cover at least the following: a. An economic-cultural analysis of the market or markets (also covering political and legal aspects) b. A description of the economic centers and the number of franchises to be set up, including the cities in which to locate them c. The method or methods used to find those franchises d. The objectives and lead times to be respected e. Possible special financial terms that may be offered
The signing of the Master Franchise Agreement also approves the project for a future chain of franchises.
EUROLOGOS Group
Franchise Network
10 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
OUR OFFICES
Head Office EUROLOGOS-Brussels ¬+32 2 735 48 18 [email protected]
Exclusivity zones are in place for Eurologos offices, comprising one city and one significant region, so as to ensure that the franchise is situated in an economic center without any Eurologos competitors within a 100-kilometre radius.
For the addresses and contact details of our offices worldwide visit:
www.eurologos.com
(in 12 languages)
EUROLOGOS Group
Franchise Network
doc_205868664.pdf
A contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them.
Pre-contractual information document for master franchise candidates
All production can be delocalized... except language production.
The Eurologos Group continues to relocalize the production of multilingual and multimedia services. We are continually setting up new “glocal” (simultaneously global and local) offices in the largest economic centers to which globalized companies must export.
www.eurologos.com
(en 12 languages)
Global communication needs "glocal" languages
EDITING - TRANSLATION - LANGUAGE SERVICES - MULTILINGUAL LOCALIZATION - MULTIMEDIA PUBLISHING
EUROLOGOS-Brussels
EUROLOGOS GROUP
Pre-contractual information document for master franchise candidates
Contents
1. Master franchising within the Eurologos Group
2. The master franchisee's economic duties
3. The master franchisee's pilot and liaison duties
4. The master franchisee's optimization and management duties
5. The master franchisee's leadership duties
6. Remuneration for master franchisees
7. The different scenarios for setting up new franchises
8. Applying to be a master franchisee
www.eurologos.com
EUROLOGOS Group
Franchise Network
2 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
1. Master Franchising within the Eurologos Group
The Eurologos Group is one of the world leaders in the language services sector and bases its strategy on the relocalization of language production. Its objective is, accordingly, to have hundreds of franchise offices worldwide. This venture is being accomplished through "direct franchising" and "master franchising". Whereas franchises set up directly and exclusively by the (Eurologos-Brussels) franchisor still account for the majority of offices in the network, it is anticipated that most franchises will, in time, be created through master franchising.
As Eurologos franchising is international, even global (we are already present on four continents), it is inevitable that the creation and management of franchises in many countries will be undertaken by local master franchisees. This same strategy, for that matter, is used by almost all multinational franchises (it is worth mentioning that franchising constitutes by far the most widely used method of company multinationalization).
Eurologos uses - not exclusively - the system allowing a franchisee to become a master franchisee, enabling the creation and management of new franchises in their country or in neighboring countries.
There is, however, also the possibility for master franchisees not to manage any Eurologos franchises in their own name.
EUROLOGOS Group
Franchise Network
3 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
2. The master franchisee's economic duties
The fact that Eurologos master franchisees are also franchisees puts them in the ideal position to undertake responsibility for increasing, as part of an expansion strategy, what is termed the "marketing density".
Indeed, the global organization of a franchise network inevitably requires the adaptation and diversification, country by country, market by market, of the concept created by the franchisor and set down in the standard franchise agreement.
What are the typical duties of master franchisees?
They can be summarized as follows:
a. Firstly, creating new franchises with unparalleled ease, thanks to the confidence engendered by being of the same nationality and speaking the same language as the prospective franchisee. And, above all, thanks to the fact that they already have their own, fully operational office to be followed as an example. b. Secondly, having an excellent understanding of the local or neighboring markets, as they speak the local language(s), and are familiar with the business trends, legislation, and working culture of the region. c. Thirdly, evaluating the economic potential of the local market, to determine its economic centers, and to calculate the exact number of franchises that can be set up in the country (no more, no less). d. The fourth responsibility is to oversee and set in motion the promotion of their own franchisees' services: a matter that is discussed over the following chapters.
EUROLOGOS Group
Franchise Network
4 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
3. The master franchisee's pilot and liaison duties
A franchise network follows the model proposed by the franchisor (and its head office). It is the prerogative and the responsibility of the franchisor to determine the professional and marketing positioning of all franchise offices. However, with the general impetus and management from the franchisor, important responsibilities regarding setting an example and communication are to be assumed by the master franchisee, who must translate instructions received from head office into their franchisees' activities, while taking account of the specific nature of their markets.
In its role as pilot company for its area of exclusivity, the master franchise sets the standard that the other franchises must follow.
The second duty, of the utmost importance, is to provide a timely account to the franchisor of the results obtained by their chain of franchises. By way of these periodic accountancy reports, a permanent, successful working relationship can thus be developed between franchisor and master franchisee.
EUROLOGOS Group
Franchise Network
5 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
4. The master franchisee's optimization and management duties
Company life is never completely immune to failure, lapses in productivity, misfortune, underhand tactics, or, in short, to any economic mishap. The role of master franchisees is also to prevent and remedy any eventuality that may arise in one or another of their franchises. The reputation and economic performance of their chain of Eurologos enterprises is at stake.
By constantly working in strict liaison and consultation with the franchisor, the master franchisee is prepared for any problem that may arise. If necessary, they facilitate the direct intervention of the franchisor, offering diligent assistance. And, should all remedial measures turn out to be ineffective (as is sometimes possible), the contract with a franchisee may even be terminated. All franchise networks provide for this eventuality in order to ensure their sustainability, and calmly face up to this possibility.
Accordingly, the master franchisee becomes a truly irreplaceable partner in Eurologos' general management by fulfilling an entrepreneurial role that is fully integrated into the upper echelons of the Group's management.
EUROLOGOS Group
Franchise Network
6 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
5. The master franchisee's leadership duties
The primary objective for any multinational company is to assume and retain the leading position in its sector of activity.
To achieve this goal, it must become the leader at an international level (this is the fundamental task of the franchisor). However, each local market must also be conquered to the degree of penetration to which the brand is "entitled": all international brands retain a potential market share in every country, on which they must simply take a firm grip.
Master franchisees justify their position by accomplishing, and overseeing the accomplishment of this task within their areas of exclusivity. This will prove impossible if master franchisees do not themselves act like a leader. Good master franchisees distinguish themselves by the fact that their chain of franchises recognizes their unquestionable leadership and authority.
The franchisor will consider master franchisees to be successful when they interpret, at the highest level, and with optimum results, the destiny of franchises within their markets.
EUROLOGOS Group
Franchise Network
7 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
6. Remuneration for master franchisees
Eurologos remunerates the work of master franchisees on the basis of the Master Franchise Agreement.
This remuneration is set down according to the principle of the "success fee": master franchisees are paid exclusively on the basis of the economic results of their labor. They are usually remunerated with a significant fixed percentage (30-40%), calculated from the amounts actually paid to the franchisor by the franchises in their corresponding area of exclusivity. This income is of two types:
a. Franchise fees to join the Eurologos network, paid by new franchises contracted by the master franchisee b. Royalties paid by franchisees to the franchisor.
The franchisor pays master franchisees, within 30 days, the amounts due following the collection, at regular intervals, of the above income.
EUROLOGOS Group
Franchise Network
8 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
7. The different scenarios for setting up franchises
The search for new franchise candidates may include a number of different scenarios. Here are five: a. First, there is the classic case of an exclusively local translation agency interested in joining the Eurologos network. b. It may also be a pre-press company wishing to incorporate a language element to its activities, and, accordingly, to become a Eurologos franchise. c. Next, there is the candidate for an unspecified franchise (to be created from scratch), with no professional background in the sector, but who is interested in receiving training and will foot the bill accordingly (being trained personally and hiring a translator and/or a graphic designer). This type of candidate is often linked with national franchising organizations. d. Then there are young translation graduates who want to set up their own business: why not do so as a Eurologos franchise? Contact with universities and higher education institutions is required to find them (see document mentioned in the following item). e. Finally, there are promoters/intermediaries: persons (businesses) not directly interested in franchising, but who may be able to find likely candidates in exchange for a "finder's fee" of a few thousand euros, paid by the franchisor upon the signing of the contract. A Eurologos information file (in English, French, German, Spanish, Dutch, and Italian) for "the promoter of a Eurologos franchise" is available, which describes all the stages and means for searching for a franchise candidate.
NB: It cannot be ruled out that master franchises may themselves comprise two or more franchise offices in the exclusivity zone, as set down in their master franchise agreement.
EUROLOGOS Group
Franchise Network
9 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
8. Applying to be a master franchisee
It is not out of the question that, in the future, even a natural person or a company not franchised to the Eurologos network could become a master franchisee. On the international market, it is not uncommon to find master franchisees that are non-franchised companies, but which act in a joint venture with the franchisor to exploit a (often very large) territory.
At Eurologos, it is, in theory, simply the franchisees that apply for the position of master franchisee. In order to sign the Master Franchise Agreement, they must provide the franchisor with a detailed and focused plan, which must cover at least the following: a. An economic-cultural analysis of the market or markets (also covering political and legal aspects) b. A description of the economic centers and the number of franchises to be set up, including the cities in which to locate them c. The method or methods used to find those franchises d. The objectives and lead times to be respected e. Possible special financial terms that may be offered
The signing of the Master Franchise Agreement also approves the project for a future chain of franchises.
EUROLOGOS Group
Franchise Network
10 11
EUROLOGOS-Brussels
EUROLOGOS GROUP
OUR OFFICES
Head Office EUROLOGOS-Brussels ¬+32 2 735 48 18 [email protected]
Exclusivity zones are in place for Eurologos offices, comprising one city and one significant region, so as to ensure that the franchise is situated in an economic center without any Eurologos competitors within a 100-kilometre radius.
For the addresses and contact details of our offices worldwide visit:
www.eurologos.com
(in 12 languages)
EUROLOGOS Group
Franchise Network
doc_205868664.pdf