ANSWERS TO QUESTIONS ASKED MOST OFTEN:
MUST THE STORE BE A SPECIFIC SIZE
The ideal store size will depend on your market. It is sometimes preferable that the first store which will serve as flagship be of a large size to accommodate furniture and office machines. That size can be adjusted based on the availability of stores for rent at a reasonable price. The project can be launched with a store as small as 300m2 or 3,000 Sq. Ft. OFFICE 1 has been very successful in a number of markets with the small store format.
HOW MANY STORES SHOULD I LAUNCH?
This will depend on the size of the market in terms of the number of firms and the population. The master franchise agreement will list a specific number of stores we will agree upon as well as a schedule of launch.
WHAT DOES THE INITIAL FEE COVER?
It is a compensation for the transfer of know-how and the expenses and time of the OFFICE 1 team to get your business launched. It is all-inclusive of time and travel expenses.
WHAT IS THE UP FRONT FEE BASED ON?
The initial master fee is based on the following:
A) The size of the country and its potential.
B) What other franchisers are charging in your country for master franchises. Keeping in mind that the OFFICE 1 business is much more complex than launching a restaurant franchise or other type of franchise in terms of the training and effort required.
C) The estimated number of visits needed to get you started.
CAN A MASTER FRANCHISEE OPEN MORE THAN TWO STORES?
Yes, the master can open as many stores as needed.
MUST I SUB FRANCHISE OR CAN I OPEN SUPERSTORES OF MY OWN ONLY?
Under some circumstances, such as a small country, you don't have to open sub franchises. The important point is to reach the largest share of market whether through your own stores or as a group.
MUST I HAVE A WAREHOUSE?
Yes, you will need a warehouse. Your first store, if large enough, can also serve as a warehouse. In larger countries one can use an outside logistics supplier to stock and deliver to sub franchisees and end-users. If the superstore is small, then a small outside warehouse may be necessary passed a certain number of stores.
WHAT IS THE CAPITAL NECESSARY?
The investment will depend on the number of stores the master plans to open, the size of the main store, whether the master will need a warehouse or not and the size of the initial fee. A capital as low as half a million US dollars could be sufficient for two stores and a basic operation depending on the size of the first store.
WHAT IS THE INVESTMENT FOR A SUB FRANCHISE?
A sub franchise of 1,000 Sq. Ft (100m2) will necessitate an investment of about $70,000 including stock and an initial fee to the master franchisee. The investment could be higher if the store is larger or smaller for smaller stores. The initial fee to charge the sub franchisee is determined by you with our assistance.
MUST I IMPORT FROM OFFICE 1?
There is no obligation to buy from OFFICE 1. You can source products locally or internationally or from OFFICE 1 CHINA or from whatever source is cheaper. We will provide you with all the necessary contacts with proven vendors who provide the OFFICE 1 group of masters with favorable prices.
WHAT ARE THE STEPS TO FOLLOW?
The first step after confirming your interest is for you to gather market information and analyze the potential for the concept in your country and keep corresponding with us to obtain an in depth understanding of the concept and investment. As a second step you may want to visit OFFICE 1 superstores in a country near you. At a later stage, OFFICE 1 would visit your country and if agreement is reached a "Letter of Understanding" would be signed giving you exclusivity for a certain amount of time during which the Master Agreement is reviewed and prepared for signature. Finally, the Master Agreement is signed and the training begins.
WHAT ABOUT COMPETITION?
The office product business is very competitive. However, the OFFICE 1 system utilizes a variety of marketing techniques not always available to others, such as sub franchising, telemarketing and direct mail that have worked well for OFFICE 1 masters. We also believe that the strategy of having many well-located stores of smaller size close to the customers and adding the purchasing power of sub franchisees to yours is a proven formula that has worked well for OFFICE 1.
WHAT INFORMATION DOES OFFICE 1 REQUIRE OF PROSPECTIVE MASTERS?
OFFICE 1 will obtain background and financial information on your company to ensure that you have the necessary capital to start and grow the business.
WHAT IS THE NUMBER OF REFERENCES I SHOULD CARRY?
A large superstore carries a full assortment of some 3,000 products, stationery as well as computer accessories, office machines and office furniture. Sub franchises carry an inventory of as little as 1,000 items. These 1000 items represent however 80% of total sales volume.
WHAT IS THE NEXT STEP?
Qualified companies who contact OFFICE 1 will receive an introductory package to be used in the further evaluation of the OFFICE 1 investment opportunity. We look forward to communicating with interested companies to discuss how they might become an OFFICE 1 Master Franchisee.