Wednesday, March 26, 2008


Franchise business type: Shoes Chain Store

Franchise capital investment: Rp 100jt - 900jt

Franchise fee: Rp 25jt - 100 jt

Royalti fee: 5% from gross profit

Head office address:

Jl.Veteran 44 Bandung

Phone: 0811248960


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
Do you want to be our franchisees? There are 6 steps you need to go through to become our franchisees.

Step 1: Fill in Application Form
Application form must be filled in completely by a party intending to be our franchisee--that is you. The completed application form will be used by our Development Manager as basis for considering your application. Our Development Manager office is on 44th Veteran Street, Bandung, Indonesia.

Step 2: First Interview
After reviewing your application form, the Development Manager will decide whether or not you are qualified to be our franchisee. Later on, the Development Manager will contact you to arrange the first interview. During the interview, you'll be introduced to Edward Forrer. Detailed information on the franchise opportunity will probably be discussed. This interview will mainly be a session through which we and you can learn ourselves each other and decide if your application falls within our franchise criteria.

Step 3: Second Interview
After the first interview, we believe that you have many questions about our franchise opportunity. In the second interview, we'll answer your questions. In this interview we'll also give you Disclosure Document and Confidentiality Agreement to sign.

Step 4: Third Interview
This is the last interview with the Development Manager. At this stage, you’ll be given an opportunity to view our general financial cash flow and balance account. You'll also be introduced to the activities of Edward Forrer’s franchise business. In addition to that, you will be provided information on franchise business law and also an advice from a public accountant in order to help you decide if you still want to become our franchisee. Furthermore, you will have your final questions answered in this interview. At last, we will schedule your meeting with our Operational Director and owner, Mr. Edward Forrer.

Step 5: Last Interview
The final decision will be made by Mr. Edward Forrer. However, just before the last interview the Development Manager will make a final assessment to find whether you are qualified to be our franchisee or not. You’ll be notified our final decision in the next meeting.

Step 6: Franchise Agreement
At this stage, Edward Forrer franchise management and you will reach a final decision and agreement as to your franchisee application status. You will be informed our last decision. If we decide to accept you as our new franchisee, you will be asked to sign a franchise agreement which contains terms and conditions of becoming an Edward Forrer’s franchisee.

Step 7: Training
Each franchisee have to attend the training in Edward Forrer’s business operation for a month. You cannot attend this training without signing your franchise agreement. During the training you will involve directly with managing our inventory, visual merchandise design process, serving our customers, customers of the best retail company. Finishing the training, you are expected to understand Edward Forrer’s store operation, including its financial management and planning, staff recruitment, product selection and ordering procedure, store construction, and etc. Finally, we guarantee you being able to run an Edward Forrer’s store in your chosen location with this tailor-made training.

Step 8: Opening a Store


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. 100.000.000,00 to Rp. 300.000.000,00
o Category B : Rp. 300.000.001,00 to Rp. 600.000.000,00
o Category C : Rp. 600.000.001,00 to Rp. 900.000.000,00
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 Permits
o Initial promotion
o And etc
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. 25.000.000,00
o Category B : Rp. 50.000.000,00
o Category C : Rp. 75.000.000,00
o Category D : Rp. 100.000.000,00
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.

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.

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

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