To accept,evaluate and decide to open a franchise shop outside Turkey on behalf of Kilim Inc. is only under authority of the head office.So all applications about will be made to headoffice.

So, features and conditions for the shops that will be opened and opportunities that will be provided to these mentioned new shops are defined,regulated and explained in the following procedure.

KİLİM INC. FRANCHISING PROCEDURE

Shops’length in meters

 Kilim branded abroad shops’ length in meters will be minimum 600m2. and maximum 1500m2.Lenghts apart from these will be evaluated according to regional differences.

Name plate and architectural support

 These shops will be able to hang name plate to their shops and architectural support will be given to these shops by Kilim.Costs regarding this operation will be equally afforded by two parties,Kilim Inc. and dealer.

Decoration of the shops

 Decoration of new shops will be made according to the demand of Kilim architects.

Deposit

1-Guarantee letters that have been taken from national Turkish banks:The amount of these letters will be determined by the Regional Export Executives and will be confirmed by Foreign Trade Manager and Member of Board.Such confirmed guarantee letters will be accepted as deposit.Costs of this guarantee letter will be afforded by the franchiser.

2-Real estates’ mortgages located in Turkey will be accepted as deposit.

3-Cheques and vouchers that are approved by Kilim Inc. law consultancy department will be accepted as deposit.

4-All types of irrevecoble and confirmed L/C (letter of credits) taken from first class intenational banks will be accepted as deposit.

Delivery terms-Payment terms-Payment maturity dates

 These shops will sell 80% Kilim products and minimum sales prices will be applied to these shops.Such prices are EXW Kayseri factory basis with min. 60 days and max. 120 days maturity dates as payment term.This price includes packing and export custom clearence costs.All other costs will be paid by the franchiser.

Promotion support

 Promotion support will be given two times ayear to these shops.The  promotionamountwillbedeterminedbyKilimExportDepartment.Promotion periods will be the second week of April and first week of November.All promotion costs will be financed by Kilim Inc.

Advertisement Support

 1-Advertisement support amount,which will be given to Kilim franchisers located abroad, will be determined according to annual turnover and this calculated amunt will be done by means of ‘free of charge goods delivery’.

2-An insert and leaflet study will be done to these shops once a year.The quantities of such mentioned materials will be determined by Kilim Export Department.

3- These shops will have usage rights of Kilim advertisement studies,which do not have copyright problem also in international markets.

4-Advertisement costs of billboard studies will be supported to 50% by Kilim and this cost will be recorded as receivable to dealer’s account.

 Target turnovers of shops

 Shops are expected to have following turnovers;500.000USD for the first year,750.000USD for the second year and 1.000.000USD for the other years.

Turnover bonus

 Turnover bonus that will be applied for the shops will be as following;

Between 500.000USD-750.000USD %0,50;

Between 750.000USD-1.000.000USD % 1;

Between 1.000.000USD-1.500.000USD %1,50;

And over 1.500.000USD %2,50

Warehouse and service vehicles

These shops must have a suitable  warehose and  shelf system for the products.Besides they must have a vehicle and a service department to carry on after sales customers services.

Spare parts

 A certain amount of spare parts , which will be determined by Kilim Inc. Export Department, will be provided free of charge to these shops when they start bussiness.After then costs of spare parts will be financed equally by Kilim Inc. and the dealer.

Distance for similiar sized shops

 The distance between two Kilim shops must be 150 km.

Authority to carry bussiness card with Kilim logo

It is obligatory to take approval of head office before publishing any bussiness card with Kilim logo.

Legal Issues

 In case of any conflict between dealers and Kilim Inc. Only Turkish trade courts are authorised to solve this conflict.

  If any further questions, please do not hesistate to contact via  e-mail : export@kilimfurniture.com.tr