subsequently, franchisee will obligate himself to set to work to establish, maintain and develop the quality of his services and performances provided under the BLUE GLUE sign.

the franchisee obligates to respect the below points in order to maintain the quality and the homogeneity of the network. the below norms and specifications should be used exclusively to any other, except for special agreement from the franchisor.

1- profile
franchisor seeks franchisees which correspond to a pre-established profile.
for more information: www.blue-glue.com/franchise/franchisee-profile.htm

2- commercial location
franchisor requests a top location, of about 30 to 40 m2.
in most cases, it will be preferably in city centers as it is often more original and high end.
mall options will be studied, depending on locations.

3- concept store opening
franchisee will open his store within 4 months maximum after signing the contract.
in case the store would not be opened by then, the contract will terminate and franchisor will reserve his rights.

4- time frame required to build your concept store
we conceive your store: this goes from adapting BLUE GLUE’s concept to your location, creating lay-out & decoration, building displays and fixtures.
• Project study: 15 days from reception of the complete file of your shop – photos, sketches, all measurements
• project realization:
- 1 month for a permanent shop, which will be mainly build of gypsum and boards by the Franchisee; we will supply only presentation items.
- 2 months for a seasonnal shop, as we would supply the whole knock-down shop fixtures.
• please also include other delays in your schedule such as shipping, reception, and clearance. (e-g shipping time to Europe is 5 to 6 weeks.)
• we can accept and develop one to two new demands per month. if some projects have been initiated prior to yours, building time frame will apply when your turn has come after queuing in line.

5- assistance
if required, the franchisor can assist the franchisee to inquire authorizations and help with administrative requests in regards to the shop opening - especially in malls.
this service will be invoiced separately after franchisee signs the proforma estimate.

6- decoration and brand image conformity on opening
6-1. franchisor will finance an architect and an interior designer on his own cost to realize the implementation plans of the concept.
6-2. he will supply the whole lay-out, displays and decoration while the franchisee will take care of renovation and equipments for which he will be fully responsible in term of liability. it is here reminded that all renovation should be in conformity to the BLUE GLUE concept on grounds of furniture, decoration elements, lay-out, sign, and brand image as described in our chart.
6-3. the shop will have to be mounted point per point in conformity to the 3D project and instructions supplied by the franchisor.
6-4. no initiative outside our stated frame will be accepted.
6-5. if franchisee believes a modification is necessary, it will have to be submitted to franchisor for approval.
6-6. modifications without written approval from franchisor will be cause of contract breach. concept and graphic identity are essentials and we cannot derogate on this issue.
6-7. franchisee will be entitled to open his shop after receiving conformity visa from the franchisor.

7- upholding in conformity
the obligations of the franchisee regarding lay-out and upkeep of the shop will continue after the opening, in step with documents which will eventually be addressed to him later on.
the franchisee undertakes to respect the style and characteristics of BLUE GLUE brand, during the life of the contract, and to respect specific BLUE GLUE style and characteristics.
he undertakes specially :
7-1. to use only BLUE GLUE sign as supplied. the use of the sign as per norms and standard defined by the franchisor is an obligation to which franchisee will not derogate on no account, even temporarily.
7-2. to expose and sell only BLUE GLUE products. put up for sale products other than supplied by BLUE GLUE will immediately be cause of contract cessation.
7-3. to open his shop to public according to usual hours as per commercial neighborhood habits, to use all avenues to well manage his shop and get the best out of his business.
7-4. to always maintain his shop, including the front facade and the sign, in a state of cleanness and salubrity so that his premises remain attractive.
7-5. to respect security and hygiene norms,
7-6. to implement the software specially created for franchisees and common to all BLUE GLUE stores (price included in the package)
7-7. to respect the commercial and marketing policy details, as this is part of BLUE GLUE know how.

8- respect of brand image property
franchisee undertakes to inform franchisor of all offense that would be brought to his knowledge without him being able to carry out defense effectively, but being able to join in the action induced to gain cause and reparation to the incurring prejudice.

9- presentation in shop
franchisee undertakes to:

9-1. keep his shop perfectly clean, clear and pleasant.
9-2. present styles impeccably, symmetrical, clean and straight on hangers, with all straps positioned as per instructions, so that the shop will look neat, tidy and organized.
9-3. check that all hangers heads are oriented in the same direction.
9-4. insure that each set is bearing its hang tag, with reference, size and price.
9-5. that all swimsuits are well displayed by color theme –e-g gradation of natural tones, acid color grouped together etc., or by theme of accessorization – e-g shell together. we will keep pictures of displaying mode available for your help.
9-6. that all available sizes are displayed in shop as per ratio: 1 x S, 1 x M et 1 x L.
each sold item will be immediately replaced from stock.
9-7. that pareos are made available in fitting rooms to allow your clients to choose other styles or sizes from the shop without getting dressed again between trials.
9-8. change hygienic sticker after each bikini has been tried on - without wearing under-wear.
9-9. often change the bikinis on mannequins, as well as visuals – P.O.S., posters or stickers, from front window or other exposition.
9-10. to refresh his shop by often changing the arrangement in shop.
9-11. accessorize mannequins with necklaces and waist accessories (we sell assortments on request).

10- reception
sales girls are the ambassadresses of the brand.
we count on them to vehicle the smile and the good energy of BLUE GLUE;
they will be polite and efficient, talented and of good advice, and show excellent presentation.
they should be competent in all business relation with public, show honesty, integrity and high morality.

11- purchases
• initial:
style and quantity assortments for each new item release is settled and prepared by the franchisor.
all styles will be represented as per quantities and ratios which correspond to distributors ordering statistics ahead of season.
• reorders:
franchisor will reorder quantities and assortments of his own choice.

12- stock
franchisee’s shop will be well stocked to attract clients to buy; complete product ranges will be displayed as per assortment arranged by franchisor; minimum stock is evaluated 500 €/sqm, which represents 1000 to 1200 pcs for a 30 sqm shop. we will require that you hold enough replacement stock at all times and will control it from the quantity pieces in monthly inventory.

13- payments
payment is due prior to shipping.
payment for a new franchisee opening will occur in 2 times:
• down-payment upon proforma reception for tailor-made decoration and lay-out.
• remain payment – for decoration, merchandise and shipping cost - prior to shipping.

14- respect of the recommended selling prices
franchisee will undertake to follow the pricing policy: franchisor has studied a worldwide price schedule and requires that franchisees apply the suggested public prices and mark-ups, as per zones specified in this schedule.
• by under pricing, franchisee will devaluate the product and generate conflicts with other clients;
• by over-pricing, franchisee will reduce its sales volume and affect franchisor’s growth.

15- sales periods and prices
sales prices and periods are organized and regulated as per below:
there are 3 geographical zone cut-outs following the same system as for deliveries:
15-1. northern hemisphere:
the start of the sales period spreads over 1st of july until august 15 depending on store location.
15-2. intertropical zone :
2 sales periods per year:
• first starts between 1st to 15th of January;
• second starts between 1st to 15th of september.
15-3. southern hemisphere:
the start of the sales period spreads over 1st of january until february 15 depending on store location.
15-4. it rests with franchisee to finish their stock during the sales periods.
15-5. if there are unsold items, they could either be kept for next season-either full price or directly sales price or for next sale period.
15-6. franchisee is not allowed to wholesale stock, except to another franchisee, under written approval of BLUE GLUE headquarters.
15-7. franchisor has the project to open some « big sale » outlets. would you be interested?
15-8. accurate sales period and prices will be informed to franchisee by newsletter.

16- return of information
in order to permanently update BLUE GLUE’s know-how the franchisee undertakes to:
16-1. send periodically the monthly information form provided to him. this information enables franchisor to gather and analyze essential functioning data such as: monthly income, stock take, selling statistics (top 10 best sellers) etc.
16-2. pass on to franchisor all information regarding his local market, and specially the evolution of client’s need, necessary new products, situation of competitors.
16-3. share with franchisor any suggestion capable of improving store management.

17- control
by virtue of a legitimate right of entry and control, the mandatory employees of the franchisor will be authorized to enter franchisor’s premises at a reasonable time, and inspect them into details. they will check operating methods and services, as well as global organization, and more specific organization in accounting, administration, commercial and technical fields.

18- statistics and management reports
franchisee undertakes to forward the below to franchisor as per expected timeframe and remitted template:
18-1. monthly: commercial statistics
18-2. quarterly : management reports
18-3. anually : franchisee undertakes to supply at his own cost yearly financial statements including social accounts and management reports, prepared in conformity to accounting practice.
franchisee undertakes to supply at his own cost yearly financial statements including social accounts and management reports, prepared in conformity to accounting practice.
these documents will be certified by a public accountant.
the annual report should be handed to franchisor within 4 months maximum after closing the financial year.

19 -non competitiveness
franchisee will not associate, join or affiliate directly or indirectly with any competitor enterprise or network, neither have interests in a competitor enterprise.
he undertakes to devote all necessary activity to operate and manage the BLUE GLUE shop, during the validity of the contract and on the granted territory.

20- insurance
franchisee undertakes to subscribe one or several insurance policies to protect his sales point from all relevant potential risks.
he will give proof of these insurance and premium payments at any time upon franchisor’s request.

21- advertizing
21-1. initiatives
any advertising initiative is welcome, subject to BLUE GLUE’s art department approval. graphics cannot be edited without a written agreement from BLUE GLUE’s graphic department. editing without a written agreement can be cause of contract rupture.
(send us your projects by email with low resolution <300 KB to webmaster@blue-glue.com)
21-2. budgets
franchisor recommends that franchisee allocates 2% of their income into promotion at local scale. buying BLUE GLUE’s bags represents 0,8% of the budget and works as the number one image vehicle.

22- packaging
BLUE GLUE pouches are offered with each bikini purchased.
BLUE GLUE bags are for sale. they will be delivered to franchisees according to the quantity of bikinis purchased, as per pre-established ratios made by franchisor. they represent a promotional budget of 0.8% .
for information: amounts for packaging are often deductible from taxes.