ENTERPRISE STRUCTURE

MAKING THE EXPANSION POSSIBLE

The Franchisee also referred to as a "Franchise Owner", is a local business operator that receives contractual rights to conduct business under the trademarks within a specified area, by the Master Franchisor. The Franchisee typically owns one or two branches and is "hands on" to ensure performance goals are met.

The Master Franchisor is the regional trademark facilitator that is responsible for performance and expansion within his/her region. A Master Franchisor may overlook an unlimited number of locations and lead a team of professionals that assist him in expanding and pursuing continued increase in performance.

 

The Master Franchisor receives a royalty from the Franchisees as well as an up-front one-time fee for license rights. The Master Franchisor buys and obtains his rights from the National License Holder.

The National License Holder obtains their incomes, based on the expansion, in the form of Regional Master Franchise Fees and incentives from local Franchise fees. In addition, the National License holder also earns from amortisation of financed branches to selected Franchisees. Besides the expansion incomes, the National License holder earns a perpetual 1% Royalty of sales within the country.

The Holding Company is the private equity fund that protects the global brand rights. It is the seat in the global expansion plans and maintains full control of the use and sharing of the Lucky 13 trademarks. It maintains its rights to approve all Franchise, License and Trading Partners.

 

The Holding Company invests in national and regional commodity and supply chain initiatives, procurement strategies, product and concept development, logistics and other measures that further seek to reduce costs and increase segment market share and profitability.

Besides from National License fees, the Holding Company earns commission based incentives from each local and regional Franchise fee. It also maintains a perpetual 1% Royalty of global sales.

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