Terms for Business
Facility: Showroom- 1000-1500 sq.ft
Parking Area- Minimum for 20-25 cars.
Manpower:The franchisee will recruit manpower as per the organization chart / skills recommended by Popular Car world. It will assist in recruitment and training of manpower. Popular will appoint one dedicated Dealer Account Manager who would guide, develop and supervise the franchisee vis-à-vis the business and other issues. Popular Car World would train one dedicated evaluator to the franchisee.
Working Capital: Franchisee would invest in the capital for the cars. Franchisee will source seller and information about them. Evaluator trained by Popular Car World will evaluate these leads independently and buy the vehicle in confidence with Franchisee and Dealer Account Manager would oversee the complete operations of Sales Purchase and Exchange grid.
Sign up Fee: The franchisee will give one-time franchisee fees of Rs. 5.00 lac (Rupees Five Lac. Only). This will be non –refundable and non-interest bearing.
Associate Franchisee :
Franchisee can open as many as Associate Franchisee in his territory with the prior permission of Popular Car World Pvt. Ltd.
In this case Fees is 2.50 lac non-refundable and non interest bearing, out of this 50,000 (Fifty thousand only) would be retained by the Franchisee for his efforts and goodwill and rest 2.00 Lac would be sent to Popular Car World. The Associate Franchisee would be run by the main Franchisee and Dealer Account Manager of the main Franchisee. The ratio of profitability would be popular 25%, franchise 25%, associate franchise 50%
Revenue from Business
- Popular and franchisee share the profit on all revenue streams (profit on cars + finance income + accessories income + RTO and Insurance income equally i.e. 25: 75 in favour of Popular.
- The definition of GROSS PROFIT. G.P. = selling price –(purchase price + interest on working capital + warranty cost + refurbishment +sales tax/vat or any other expenses).
- Popular has the first right of refusal of the car i.e.franchisee would not buy that car on his own until Dealer Account Manager is not convinced to buy that car may be because of model or pricing.
- Transfer and documentation on all cars would be the responsibility of the franchisee.
- Vehicles can be delivered after Dealer Account manager gives a release order.
- The franchisee is to follow procedure and process as listed in Popular service and sales manuals. MIS to be submitted on daily basis, weekly basis and monthly basis as per the formats given.
New avenues for higher margins
All efforts would be made to keep new cars on display from new car dealers. Exchange of cars would be additional revenue generation.
Popular Car World at its own can make available some cars in C segment on much higher discounts through its Local Regional / Area network tie up.
Even these cars would be available on our website especially for our Franchisee / Associate Franchisee. |
