Hello! I have a question: How many types of Franchises are there?
As far as I know, there are 2 types of Franchises, A and B.
Ok, thanks for the fast response, but if I may ask you for some more details. Could you please elaborate more what type A and B are?
Sure, no problem. The type A is the Franchise Owner of a Power Retail Company and there is only one per country and it represents RestartEnergy within that country. In a Type A franchise, RestartEnergy would work together with the franchisee to help set-up his own power retail company, and the franchisee would be the one to enter into a new market and establish his business. The franchisee would take on all risk and expenses to create a market, and RestartEnergy would provide technical, infrastructural, process automation, marketing sales support. The franchisee would need to provide the financial and management capacity for setting up his power retail company.
And the type B are reseller/broker. RestartEnergy would be the one to enter into a new market and establish the company. The company would take on all risks and expenses to create a market, and the franchise owner would simply act as a retailer or broker with the company support.
If you have any more questions feel free to ask.
Thank you for your answer. I have 2 more questions and that's it. What will the owners receive in both cases and what are the pros and cons, again in both cases.
Ok, this will be a long one.
On type A the owners will recevie the following:
Assistance for creation & operation of own power retail company;
Right to use Restart Energy's brand and business model including software and franchise infrastructure;
Control over revenues;
Technical Training for all staff and employees;
Marketing and Branding package;
Country Promotion for the months leading up to and after launch, paid for by Restart Energy, in order to promote the RED ecosystem and franchise business;
Access to Complete Energy Supply CRM Software with 100% process automation;
Access to Restart Energy specialized personnel and management to assist and fully support the franchise and its owners;
Energy & gas trading, balancing and forecasting technical support.
And the pros and cons for the type A are the following:
Pros:
Higher profits;
ownership of power retail company;
cross selling to existing customer database;
high process automation to deal with large numbers of low volume consumers with high margins;
unique selling points and ecosystem;
flexible products and services.
Cons:
Higher capital requirements; Franchisee takes the risk of expansion to new markets.
Now let's get to the type B, where the owners will recevie the following:
Right to create and sell sub-franchises;
Part of revenues from all sub-franchises;
A comprehensive franchise kit, detailing all relevant information for the target market, modeled after our already successful franchise kits provided to European partners;
Training for all staff and employees;
Marketing and Branding;
Local Promotion for the months leading up to and after the launch, paid for by Restart Energy to promote the RED ecosystem and franchise business;
Access to the Agent Module, offering the ability to add new franchises, see energy consumption and manage clients;
Access to the Front Desk Module of RED CRM;
Access to Restart Energy management, from where we can assist and fully support the franchise and its owners
As a Master Tier reseller/broker, you would be entitled to a percentage of all revenues made by all other franchises in the target country (typically 10%),plus the revenues generated from direct sales, in the form of signing premium plus passive consumption commission.
And the pros and cons are:
Pros: Very low risk, Restart Energy takes on cost of expansion.
Cons: Lower margin compared to full franchise ownership.
I hope these answers help you and if you have any more questions don't hesitate to ask.
