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Franchise

Franchise

What is Batuta Manufacturing Franchise Model?

The manufacturing franchise model is the investor's ability to reach the planned production, sales capacity and product quality by using the brand and experience of a manufacturer firm already in another country. In this way, the person who receives the franchise service can get the experience he / she has over the years quickly, and the organization / person providing the franchise service can enter to the target market with low risk and low risk.

Model Operation

  1. Cost: The franchise service institution / person calculates the investment cost of those who will be supplied from the country where the optimal production facility is located and prepares a feasibility study. In addition, it identifies the products to be produced first for the start and adds the required stock amount and cost to this feasibility report (Table 1).

Table 1: An example of a cost table.

Note: The raw materials are calculated as the base for 1 month.

Budged

Product

Unit Price

Unit

Total Price

Machine A

$       1.800,00

1

 $                        1.800,00

Machine B

$     11.000,00

1

 $                      11.000,00

Machine C

$          950,00

2

 $                        1.900,00

Machine D

$       1.250,00               

1

 $                        1.250,00

Hand tools

·       A

·       B

·       C

-

-

 $                        1.300,00

Raw material A (kg)

$              6,00

2000

 $                      12.000,00

Raw material B

$              4,50

400

 $                        1.800,00

Raw material C

$              4,50

400

 $                        1.800,00

Raw material D

$              1,50

400

 $                           600,00

Raw material E

$              3,00

600

 $                        1.800,00

Generator (X KVA)

$       7.000,00

1

 $                        7.000,00

Transportation expense

-

-

 $                        3.500,00

Grand Total

$                   50.250,00

 

  1. Training: A) The number of experts and the length of their stay will be calculated and added to the feasibility study together with the cost. B) The Franchisee shall be added to the feasibility by informing the person receiving the service on the basis of the qualifications required to employ personnel (Table 2).

Table 2: An example of a training table.

Number of Required Employee

Qualified

Unqualified

Technician

Engineer

Office Worker

Manager

Other

 
 

2

4

 1

 2

 
 

Training Time and Place

Education will be given in 1 month in the country concerned.

 

Specialist to be Transferred (Branch and Salary)

1 experienced mechanical engineer will be transferred and the monthly salary is $ 2000.

 
 
 
 

 

  1. Raw Material: It is determined and listed which raw materials to be used shall be obtained from the institution / person providing franchise services and which ones will be obtained from the relevant country (Table 3).

Table 3: An example of suppliers.

Note: The raw materials are calculated as the base for 1 month.

Raw Materials and Supply Places

Raw material

Unit

Country to be supplied

Raw material A (kg)

2000

Related country

Raw material B

400

Turkey

Raw material C

400

Turkey

Raw material D

400

Turkey

Raw material E

600

Related country

 

  1. Contract: The manufacturing franchise agreement prepared by international law offices should be examined in terms of technical details. While these law firms can generally prepare contracts to protect the rights of the parties, they are generally not familiar with the details of the work. For this reason, it is expected that the franchise service provider will add the technical details of the contracts to those contracts. The relevant example is given in (Appendix: 1).
  2. Turn-key: After receiving the address of the factory, the franchise will have a turnkey, ready-to-operate facility with all machinery and equipment. In the factory installation, materials, equipment, and raw materials to be obtained from the relevant country are decided and supplied together with the franchise.

Appendix 1

JOB DESCRIPTION (TECHNICAL SPECIFICATION) STANDARD FORM            

(For Service Purchases)

Contract Name: ________________

Reference no   : ________________

In the Terms of Reference, the project coordinator shall provide the basic information about the project and the information about the service he / she wishes to make according to the following titles.

  1. BACKGROUND

1.1. General information about your project

1.2. General information about the Contracting Authority (the organization responsible for managing the contract)

  1. CONTRACT OBJECTIVES

2.1 Expected results from the service provider (In this section, the expected results of the works within the scope of this agreement and the targets to be reached will be written.)

  1. SCOPE OF WORK

3.1. General

3.2. List of detailed activities

(In this section, the works to be done within the scope of this contract will be stated clearly and in detail in order to realize the contract objectives.)

3.3 Conclusions

(As a result of the above activities, they will be clearly stated.)

  1. LOGISTICS AND TIMING

4.1. Place of service:

(Specify where to provide services (city / county / village yeri))

4.2. Start date and application time

The envisaged start date is <……> and the application period will be <……> month from this date.

  1. REQUIREMENTS

5.1. Staff

(All experts with key roles in the execution of the contract are key experts. Specify the profiles of key experts (educational status, skills, experience, etc.)

5.2. Equipment and facilities to be provided by the service provider. Goods will not be purchased under this contract.

(Please indicate whether you would like the bidder to provide the computer, training material or other equipment you may need as you will meet the requirements of the contract.)

  1. MANAGEMENT / CONTROL AND FINAL APPROVAL

6.1. supervisory

(Name of the person responsible for supervising the services in your organization.)

6.2. Definition of performance indicators

(The performance indicators to be used by the auditor to assess whether the services provided by the service provider have met the purpose, and how successful they are.)

6.3. Special requirements and requirements

Special conditions will be added in this section, if any.

Apply to program:

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