Franchise - Frequently Asked Questions
| Feb 05, 2008 |
A PILOT SHOP IS A COMPANY OWNED SHOP ALREADY OPERATING, AND WHICH STANDS AS AN EXAMPLE TO LAUNCH OTHER SHOPS (WE TAKE OUR DATA FROM THOSE SHOPS) WE OWN 4 IN BALI, AND THE PROJECT IS TO OPEN 5 NEW LOCATIONS IN THE COMING 2OO8
THEY ARE PRIME LOCATIONS EXCELLENT IN TERMS OF IMAGE FOR BLUE GLUE. FOR EXAMPLE, OPENING MOSCOW AIRPORT IN 1 OF OUR NEXT FLAGSHIPS
YOU WOULD HIRE YOUR OWN CONTRACTOR. HE WOULD RECEIVE ALL THE TECHNICAL DESIGNS AND WOULD BE MONITORED BY OUR ARCHITECT
AVERAGE 10.00 EURO/PC
40 SETS IN 400 EUROS
ABSOLUTELY
If my understanding is right, what is the advantage of going franchise?
THOSE 2 CONCEPTS ARE TOTALLY DIFFERENT.
WITH A CORNER, YOU ARE A MULTILABEL STORE. YOU CARRY OTHER PRODUCTS AND YOU BENEFIT FROM A PERIMETER OF EXCLUSIVITY.
WITH A FRANCHISE, THE EXCLUSIVE PERIMETER IS OF COURSE A LOT WIDER, YOU ARE IN PRIORITY TO ANY PRE-EXISTING CLIENTS ON THE TERRITORY, YOU BENEFIT FROM THE BRAND’S NAME AND SIGN, YOU HAVE THE FULL IMAGE, OUR IT SYSTEM, THE ASSISTANCE, THE KNOW HOW.
CORNERS ARE A SUBSTITUTE SOLUTION TO HELP LAUNCH OUR FRANCHISE. IT IS A GOOD WAY TO GET STARTED IN PRIME AREAS, AND THE ONLY SOLUTION IN MORE REMOTE AREAS (WHERE SELLING ONLY BIKINIS WOULD NOT BE VIABLE)
IT CONVEYS THE IMAGE AND DISPLAYS ENOUGH STYLES TO SHOW HOW MULTIPLE BLUE GLUE IS, THEREFORE ENHANCING THE SALES.
IT IS ALSO THE ONLY SOLUTION TO RETAILER CLAIMING EXCLUSIVITY.
FRANCHISE IS THE ABSOLUTE PRIORITY ON PRIME LOCATIONS
YES BASICALLY.
CORNER IS A NEW DEVELOPMENT, AND IT IS A MORE SIMPLE CONTRACT; YOU ARE NOT SUBJECT TO HEAVY FRANCHISE REGULATION
| May 26, 2007 |
Franchises do have an exclusive perimeter, which is studied on a case to case basis.
One franchise would not be exclusive for a country.
Yes, we receive Franchise proposals from individuals or companies, and study each offer.
We survey our future Franchisee profile: his/her experience in fashion, commercial or managing background, check their location for the concept store, and consider the budget they wish to allocate for the project.
From our side, we make sure that the Franchisee will be happy, and this involves “non competitive perimeter”.
The exclusive area is different according to each context such as country, fashion standards of population, tourism, etc…
Below are some examples of how exclusivity works:
In Bali:
We have 3 Pilote shops in Kuta, and they are no competition to one another:
First one to open is located in the wholesale area where buyers come to Bali to purchase for their shops. They buy Blue Glue for themselves, and we also wholesale to shop buyers from this shop.
The 2nd is in the local resident shopping area. We sell to local clientele and also to some tourists who like to explore.
The 3rd is in the highly touristical area of Kuta where we catch only the 100% pure tourist!
We will open 4 more in the next coming months:
No 4 still in the tourist area but for tourists with lower budget; we will display simple and commercial styles and stock lots.
No 5, 6 and 7 will open in 3 villages near by with different clientele, Ubud, Sanur and Nusa Dua.
In France, we have seasonal franchises. They open in March for Summer and close in September. They can be located all along the coast, in touristical villages. Their respective perimeter is determined by the name of a village. For example there can be one in Cap d’Agde, and another one, 6 km away, in Marseillan Plage.
In Tahiti (Polynesia):
We have given exclusivity for the whole island to the franchisee. She has the No1 best location in Papeete, a wide space right in front of the harbor.
She will also act as an “Area Developer” and wholesale to some hotels stores, and other shops around.
In St Marteen (Carribbean) we have the same situation, our franchisee is an excellent location, and acts as an exclusive Area Developer.
In Koh Samui (Thailand):
The Franchisee is exclusive in Chaweng Road. This is the main street where tourists go shopping, go to bars and restaurants.
We plan to open another one in a fisherman village nearby. Unlike Chaweng road, it is not a highly commercial area, it is more sophisticated and cultural.
This is a similar commercial environment as in Bali; Touristical potential is huge, and if we define the areas, there is no competition.
You can also share your experience and describe the commercial activities and practice in your area, to help us define your exclusive perimeter.
Our goal is not to cover the world in Blue Glue! We just want to make sure that all necessary and sufficient spots remain available for initiatives, without infringing on our existing Franchises.
No, sorry you can’t.
A Blue Glue shop can sell only Blue Glue, and it should show the full decoration, displays and atmosphere of Blue Glue.
It is a key point for Blue Glue’s development that we all respect the strong merchandizing of the Brand.
If it is possible, 30 to 40 Sq Mt is perfect. We can manage to create smaller spaces if it is necessary.
Yes, of course you can start to open a corner, but we cannot give you a priority.
As stated on the Concept store presentation document, there is no priority given in the franchise story; first coming, first served.
If you open a corner, you are a corner status; which means according to our policy, (we want the access to Franchise to be free and open), that anyone can submit us a proposal for a franchise, and will have priority on a corner, if they fulfill our required conditions. (Stated above)
It wouldn’t be nice that you found Blue Glue, and someone would steal it from you! J
But it can happen that you open a corner, no one opens any franchise, and you do so later…
| May 16, 2007 |
Some Franchisers were previous clients which switch to Franchisers, they knew us from before.
Some only met us through email.
But to resume the situation today, I would say today that our Franchise is at the very start of its life. (May 15)
We have been closing down the ones opened last year, one after another, as the openings had been started too fast, regulation not yet completed, and Franchisees did not follow the scheme.
A Franchise network is like a chain: it is only as strong as the weakest of its links.
So we had to review it all, and start again from the beginning.
By coming here, you would:
• See our installations, garment & stock.
• Meet the different teams (design, sales, production, office..etc), you would meet me, (in charge of development, design, operational, and brand owner)and Kevin my husband (he gets the good part like strategy, problem solver, and event section)
• Enjoy a complete tour of Blue Glue: from extensive product presentation through to company spirit, strategy and future developments. That could be two half days with me.
• You could spend some times in our shops, meet our charming shop keepers, taste the slow-bali-with-a-smile-selling-techniques…J (I am not too strict on this, as the first strategy of our business was export, we never trained-the-girls-to-kill as sellers) (but we are starting! J) that could be another two half days, around the shops.
• We would have a couple of nice diners out,
• You could take the driver and enjoy shopping and visiting around; I could also link you through journey organizers to enjoy a few days in Bali
• And I am afraid you would stay here and never go back open the shops!
I am not sure that the more they want you, the less you have to pay…As we are looking at prime locations, we have to match in the environment, and I understand for them to be picky. This is where tools, printed matters and sampling stand, showing a product that needs no additional words, introducing a concept professionally, generating trust, and most often – you will be surprised! bringing the people we are talking to, into the Blue Glue passion!
You will find that the BIG BOOK is a “must have” to negotiate best terms!
One of the essential advantages of Blue Glue, besides it is a great product, is its price and mark-up, which allows a 77% return on investment.
This guarantees that it will not be a shop closed within a year or two, and is an essential advantage to face lease costs.
Also keep in mind that one of our strengths is a net profit of 65.00 US$/set, with purchasing statistics of 2,7 sets per purchase; No lease cost resists retail emotional consumer/fashion goods, with high mark-up!
| May 08, 2007 |
THIS IS THE TYPE OF ADDRESS BLUE GLUE NEEDS!
20 SQM IS ENOUGH; OUR NEXT OPENING SHOP IS 19 M2, AND WE MANAGED TO MAKE AN EXCEPTIONAL DECORATION THERE.
SURE (THIS IS ALREADY MENTIONED IN FRANCHISEE REGULATION)
IT CAN HAPPEN.
WE HAVE DONE THIS IN HYPEST AREA OF FRANCE AND CARIBBEAN FOR WHICH WE HAVE AGREED ON HIGHER RETAIL PRICES.
WE WOULD NEED A COPY OF THE CONTRACT TO CHECK THE RENTAL COSTS.
Can you advise me in regards to other shops worldwide?
FRANCHISE IS TOO NEW, WE DO NOT HAVE ALL THE AVERAGES OF OUR CLIENTS BUT OUR 3 SHOPS DO 7, 10 AND 11 SETS PER DAY AVERAGE ON A YEAR. AND WE HAVE 3 SHOPS IN BALI, GOING 5, SO THEY SHARE THE POTENTIAL OF CLIENTS. THE FIRST FRANCHISE SOLD OVER 1800 SETS IN LESS THAN 120 DAYS WHICH IS OVER 15 PER DAY.
A PRIME LOCATION WOULD REACH AND EXCEED THE 12-15 AVERAGE DAILY SOLD PIECES ON YEARLY STATISTICS.
1. You are expected to do local promotion (on your exclusive area), investing on it at least 2% of your incomes.
2. Our distributor will handle the national promotion.
3. Blue Glue has an event organiser that takes care of the promotion world wide.
4. It is possible if there is a big event in (your country) that he will advise us to be part of it.
5. It is his responsibility, we trust him on this, he is the only one deciding where Blue Glue should be seen. If there is a big event you want to be part of and need our help, please let us know so we can present him the project; he will decide if we should be part of it or not.
If we build a seasonal shop, you assemble it, it is simple.
But your shop is definitely a permanent shop, what we call a cityshop.
So you will need more than a carpenter! electricity, air con, floors, 3D walls etc will probably have to be installed. (depending on initial setting of shop), and you will need a contractor.
Our plan includes elements and 3 D shapes that your building team will have to create with gypsum (calciboard).
This is the cheapest material and best way to build. On another hand there will be no shipping nor import cost on these
Final look is of course far better than metal/plexiglas units.
Blue Glue head office does promotion on a world wide scale
on a local scale Blue Glue’s distributor will be doing promotion
franchisee have a portion (2%) from their budget allocated into local promotion (their exclusive area)
yes of course, it does impact local sales; But this should be done on your own costs.
Blue Glue’s income per piece is 2.00 Euros Franchisee’s income per piece is X 4 to 8 wholesale – landed cost, which leaves an average of 45.00 Euros net/pce.
Once it is the end of the season, it is time to go for Sales prices, and clear out the stocks, still earning comfortable income during sales period.
Any remaining stock can be displayed again during next sales period/ or season, at low price to attract clients with very affordable prices.
Once stock is purchased we do not accept returns except from agreed servicing/replacing/refunding from eventual reject items.
We will work out in the future some Factory Outlets (BIG SALE) probably also franchised which could collect any over stocks and sell cheaper all year around.
Yes;
in europe this will be once a year, in the tropical islands 3-4 times a year. Some of them we do not know exactly in how many shops they display though.
still under development.
We’ve been using our new software for already a couple of months, but the shop version is still being processed .
We expect it ready for end of August.
A quick and cheaper move is a corner in an existing shop, or a booth in a mall or elsewhere, with nice surroundings (beach, harbor...) For us it is a 3 weeks building time, for you it is lower investment, and it will enable you to test the concept and product. But your exclusive perimeter will not be as wide of course…
250 bikinis sold per month in year average.
Each client buys 2.7 bikinis
Corners are shops-in-a-shop.
We have display modules that you implement in existing shops, or malls.
They increase brand presentation and recognition. , and will increase a lot your sales, if compared to a simple retailer.
Yes of course ++++
There will be help always, as long as you are a blue glue!
As far as legal issues, you should have a registered company in your country to establish business; to operate the business, you should follow Blue Glue’s Franchise regulation.
30 sqm is enough, up to 40 sqm is good. More can be too big, uless we cut the back to store stock.
We have opened a Franchise with 25 sqm in a hot location. It is small, but still workable, as we managed some storage behind the fitting room.
Taking a Franchise - either seasonal or permanent, is building a continuous brand perception, from store location to material approved and designed from HQ Blue Glue.
Locations should be evaluated by brand presence, quality of entire market environment, traffic and possible price. The quality of retail/boutique culture around your future location is a key asset.
Blue Glue as a brand with its branding philosophy and retail concept does not fit into a low cost ambience.
From our experience prime location is a key factor, and will grant you exclusivity on a territory.
We have opened few franchises until now (12) but all of them are on prime locations in terms of fashion environment.
Our Franchisees have the right spot, the right product and concept, they are happy
You are on the spot, and therefore know better than us what would be a "prime location" for a highly fashionable brand of bikinis.
Once you have selected a location, we arrange to evaluate from our side if it is appropriate for a Blue glue concept store.
You can also open a retail store - that would be under another name, and sell Blue Glue; but that would no more be a Franchise, it would be a retailer status, with limited exclusivity.
It would be about selling a product like any other, not being part of a magical story! :)
| May 07, 2007 |
I AM NOT SURE THERE ARE CHEAPEST AND EXPENSIVEST…
THERE ARE SEASONAL SHOPS (OPEN ON THE COAST FOR JUST 1 SEASON) AND THEY CAN BE KNOCK-DOWN.
THERE ARE PERMANENT SHOPS, LIKE IN CITIES.
WE SEND THE COMPLETE KNOCK-DOWN DECORATION FOR SEASONAL SHOPS, SO IT LOOKS LIKE A “CHEAPER” SHOP, BUT CLIENT BUYS MORE WITH US AS HE BUYS THE DECORATION. PERMANENT SHOPS ARE IN CONTACT WITH OUR ARCHITECT, AND THEY HURE A CONTRACTOR TO BUILD THEIR STORE. THEY BUY LESS WITH US, BUT THE FINAL COST IS MORE.
May you send me statistics of european sells?
OUR PROJECT IS TOO NEW.
THE ONLY STATISTICS WE HAVE ARE THOSE IN THE D.I.P. FRANCHISOR INFORMATION ONLINE.
WE ALSO HAVE THE STATISTICS OF OUR 3 SHOPS IN BALI.
AND WE CAN REQUIRE THE STATISTICS OF TAHITI AND KOH SAMUI, BUT IS SEEMS LIKE THOSE PEOPLE ARE BUSY CATCHING UP WITH THEIR GROWING BUSINESS, AND ARE NOT ORGANIZED ENOUGH TO SUPPLY STATISTICS.
BESIDES KOH SAMUI WAS OPENED IN JULY 06 AND TAHITI IN SEP 06, SO THEY DO NOT HAVE 1 YEAR EXERCISE COMPLETED.
WHAT I SUGGEST IS THAT YOU PURCHASE BLUE GLUE’S BIG BOOK, OUR PRESENTATION TOOL, WHICH FEATURES:
· Product catalogue
· Press book 06 (100 pages of publications in Paris)
· CD Rom: all styles cut out, High and Low resolution, flat and on mannequins ready out to the Press. Blue Glue’s illustration artwork and Logos, price lists…and more,
· A catalogue of Blue Glue’s specific concept decoration, displays and fixtures.
· Franchise program pack including: Zoom, franchisor information, regulations, advice, application, price schedules.
· Company profile booklet…and more
· Promotional environment
BEST WAY TO INTRODUCE BLUE GLUE WITH YOUR BIZPLAN !
Glue Glue is the brand name. We register Blue Glue to a new country whenever there is a development.
The trading company is Youkilele Pte Ltd
The manufacturing company is P.T. Flamboyan Kreasi And there are private investors.
I will email you a template, and we’ll be uploading more, soon on website.
I personally do not believe much in distribution, at least for Islands (like Hawaii)…and in general for small territories.
Blue Glue’s priority is franchising; Once there is a franchise or a couple of them on a small territory, each covering a perimeter, the whole territory is very soon locked!
Unless you have a wide territory, lots of salesmen, great budget for stocking and self-re-boot-energy…distribution is a headache.
At the head of business development at Blue Glue since the very beginning, I have received 1 to 2 trials propositions per week and more than 90% of them fail.
Professionals who already have a portfolio and experience succeed. But it seems that we do not meet those species often, and all the fall-in-love-with-blue-glue-at-first-sight fail with distribution. It is hard work and low profit unless you do it big. Nothing to compare with a Franchise.
We start to have some good distributors, Spain, Norway, Netherlands, and more, on wide or organized territories.
I have been taking care of the development at Blue Glue since the beginning, and numbers talk. 1 franchise = 10 retailers (good ones) It is all about image.
The best option in an island would be a Master Franchise, which, eventually can also distribute to small retails (like hotel shops or beach shops…etc).
In fact we protect the distributors once they start, and reroute all emails from their prospects back to them.
A franchise has a perimeter of exclusivity. We protect our Franchisees. It’s not like we want to cover the whole world in Blue Glue!
Factory is small, we want to keep it like this; the product is going Elite; our development is not going through mass…at least for Blue Glue.
The notoriety of a brand also goes through multi label stores. Well chosen high end stores carrying top renown labels will help build a name faster.
What advantage would we have, are there product lines we would carry that can't be found at other stores?
1. First the retailers are not near you
2. Second they carry a limited choice. (Clients would go to a Franchise, where they know they can find a wide choice, and their size.)
3. Third, they do not have the Blue Glue atmosphere, decoration, promotional environment, total concept.
4. Fourth: Franchisees have it all as we make sure that the complete ranges are displayed at the start of the season:
· the “funky” lines, typical Blue Glue: Glamour, Just for Fun, Wrecked…and more
· the chic lines: I want to play it “Classic”:Essentials, From the Sea..and more
· the technicals Laser cut, Ultra sonic welded, placed prints, glued motives, die cuts, molded.. etc…
· the basic “Let’s keep it simple”: Plain, Reversible 4 sets in 1, Tangas, Voluptuous (bigger sizes)
· the lovely prints “swim in color”
and…
· Collectors!
Franchises will have the “Collectors” in exclusivity.
Hold your breath, these new “absolutely exquisite” lines will walk the red carpet for Summer 2008, with first deliveries for Christmas 2007.
