Business Franchise

PEOPLE REPUBLIC

FRANCHISING MANUAL

PEOPLE REPUBLIC FRANCHISE AGREEMENT

The duration of the Franchise Agreement shall be 2 Years with an option to renew for another 2 year;

Franchisee shall pay a Deposit of Ringgit Malaysia Thirty Thousand (RM30,000)only upon signing of the Franchise Agreement;
The Deposit shall be refunded free of interest to the Franchisee upon expiry of the term of the agreement unless the Franchisee chose to renew for another 2 year;
In the event of any breach of the terms and conditions in the Franchise Agreement by the Franchisee or early termination by the Franchisee, the Franchisor shall have the right to forfeit the Deposit;

Renovation cost approximately RM100 per Sq ft. ( including Fixture + lighting + display item);
Franchisee will undertake their own renovation and a minimum design consultancy fees have to be paid to the interior designer appointed by the Franchisor .The interior designer will provide detail drawings of interior plan, consultancy and sourcing which the Franchisee shall adopt and accept without any alterations whatsoever;
Poster, Hanger, paper bags, mannequin (Optional) will be purchased from franchisor;
The premises for the business operation must have a minimum built up of 1000 Sq ft and the location of the premises have to be approved by the Franchisor.

Order shall be made with standard purchase order form provided by the Franchisor through electronic mail or facsimile with a minimum order of 2 pieces per design/ size/ colour of the merchandise;
The Franchisee is entitle to Ringgit Malaysia Twenty Thousand (RM20,000.00) credit limit. Any amount exceeding the credit limit shall be paid by the Franchisee in cash;
For every first order of merchandise by the Franchisee, it shall be paid by cash immediately upon placement of order. For every subsequent order, the Franchisee is allowed to settle the payment with the Franchisor within 30 days upon placement of order.
Merchandise will be delivered to the Franchisee at the address provided within 7 days upon placement of order. The delivery charges shall be fully borne by the Franchisee;
The Franchisee is entitled to an immediate delivery service for any order above 36 pieces of merchandise and the delivery charges shall be fully borne by the Franchisee;
Merchandise sold are not returnable or exchangeable except it is damaged and/or it is not of merchantable quality for the purpose of sales
Merchandise found damaged or different with the order made are exchangeable within 10 days upon receipt of the goods.

Franchisee is entitled to 60% discount based on the retail price (“wholesale price”) for merchandise ordered;
For order above RM50,000.00, the Franchisee is entitled to additional discount at the rate as follows based on the wholesale price:-

Franchisee is not allowed to sell such other brand of merchandise save and except for merchandise from the Franchisor;
Franchisee shall:-
Franchisee from East Malaysia is allowed to increase the retail price up to maximum of 20%

** This Franchise Manual shall be taken read and construed as an essential part of the Franchise Agreement.