L’AROME PERFUMES – FAQs about MASTER FRANCHISE

• L’arome is a new business concept,
• It is visually alluring and attractive to potential clients and end users,
• L’arome (EDP) perfumes are highest-quality perfumes,
• L’arome perfumes are “Made in France”,
• The retail price is very good with respect to other “Made in France” perfumes on the market,
• Due to their good prices, high quality and alluring appearance, the sales of L’arome perfumes are high,
• The operating margin is high for the Master franchisee as well as for the Sub-franchisor with respect to the average in the perfume & cosmetics industry,
• Complete training on business operations and perfumes,
• Territory exclusivity.

The Master franchisee is obligated to open at least one point of sale with L’arome products, i.e. L’arome business model on a frequented location. The Master franchisee may sell L’arome business model to a third party (sub-franchisors) by entering in to a three-party agreement between the Master Franchisor, Master franchisee and Sub-franchisee.

The condition is that a Master franchise does not already exist in that area (territory or country).

The potential Master franchisee must have a vision, i.e. a business plan for the opening of L’arome points of sale for a determined period of time.

The potential Master franchisee must have sufficient financial funds for the investment. The potential Master franchisee enters into an Agreement between the Master franchisor and the Master franchisee.

Your request will be taken into consideration and your information will be saved in our database for the purpose of a future collaboration or the realisation of other potential business collaboration opportunities (sub-franchising or similar).

The amount of financial funds depends on the size of the territory or country where you have a possibility to become a Master franchisee. The minimal amount is approximately from 15,000 Euros to 50,000 Euros.

1. The exclusive right to sell L’arome products and the L’arome concept for his/her territory,
2. The entire first fill, i.e. the stock of necessary L’arome products for further distribution according to the Master franchising pricelist,
3. The entire furniture for the opening of one L’arome point of sale,
4. The entire training by the franchisor.

The exact training costs depend on the location of the Master franchises, but it should not exceed 10 – 15% of the initial investment (depends on the amount of the initial stock), definitely not exceeding 3,000 Euros. The training costs include only actual travelling, hotel, food and similar expenses.

You can arrange with the Master franchisee to hold the training

1. In our headquarters in Croatia, in the City of Zagreb
2. At the Master franchisee’s premises.

Our suggestion is to hold the training at the Master franchisee’s premises shortly prior to the opening of the first shop, in order for the Master franchisor to be able to educate the Master franchisee’s personnel and the Master franchisee’s sales personnel in the Master franchisee’s point of sale as a single expense.

Yes, after the completed training. All instructions shall be in English.

In our experience, the operating margin is significantly higher with respect to similar products in the perfume & cosmetics industry.

• Assistance and consulting regarding shop management;
• Distribution and formation of wholesale and retail prices and conditions;
• Logistics-related assistance;
• Joint expositions on local franchising and business opportunities fairs;
• Joint marketing, L’arome brand promotion and public relations.

Joint collaboration with the Master franchisee in the selection and adjustment of the most appropriate range of L’arome products to the local market’s demands.

Joint market research with the Master franchisee in the promotion of new L’arome perfumes and other products.

Assistance regarding all other questions concerning business operations with L’arome products.

Yes, our L’arome Master Franchise concept reduces business failure risk to a minimum, as follows:

1. Enter fee Master franchise is not paid;
2. Master franchisee does not pay advertising turnover percentage;
3. The Master franchise does not pay the Royalties fee.
4. The Master franchisee invests more than 95% of its funds in the goods stock according to the Master franchise prices (lowest prices);
5. The Master franchisee is required to open one shop with the L’arome concept in a frequented location. The entire investment in equipping the shop entirely and in the goods in a space of 20 m2 is less than 7,900 Euros (the price does not include transportation, PC till, lighting and shop floors design), which is considered a very small investment in the retail industry;
6. The Master franchisee receives the entire training and knowledge, on which our management has worked for 16 years and it refers to retail, wholesale and franchise management;
7. In case you wish to sell the Master franchise, the Master franchise right may be assigned to another person, with the approval of the Master franchisor;
8. In the worst case scenario, where the Master franchisee cannot find an adequate purchaser, the stock of goods (in which the Master franchisee invested 95% of the money) can be sold in his/her shop thereby returning the funds invested in the stocks, and later the shop equipment may be sold on the market.

Yes and no.

Our business policy is that the samples are charged to potential Master franchisees by charging the samples to the potential Master franchisee, and if the business collaboration is achieved, at the supply of the first goods, the amount of paid samples is deducted from the invoiced amount.