FAQ ABOUT THE BIFRANCHISE CONCEPT
What is a Bifranchise?
What is the difference between Bifranchise and franchise?
Why Bifranchise is better than franchise?
How old is the Bifranchise concept?
Are there any similar concepts in the world?
What are the advantages working under the Bifranchise system?
In how many countries will the Bifranchise concept operate?
How will the international transaction be converted to local transactions?
What kind of products will be offered by the Bifranchise?
What services related to international trade will be offered by the network?
Who will finance the transactions?
How will the Bifranchisor control the transactions?
What measures will there be in place to control fraud?
How will the Bifranchisor select the supplier for an order?
Why will the Bifranchise be able to compete in pricing?
FAQ ABOUT THE BIFRANCHISOR
Who is the Bifranchisor?
How long has the Bifranchisor been in business before establishing Bifranchise?
What is the Bifranchisor’s expertise?
What marketing support will the Bifranchisor offer?
FAQ ABOUT THE BIFRANCHISEE
How can I become a Bifranchisee?
Are there any limitations as to what business can become a GIA Trading Group Bifranchisee?
If my country already has a Bifranchisee, can I also purchase a Bifranchise license?
What are the requirements to become a Bifranchisee?
Can a Bifranchisee be appointed to more than one country?
Can there be more than one Bifranchisee per country?
How big can the Bifranchisee’s territory be?
How can one Bifranchisee handle the workload in large countries?
When will the Bifranchisee sign the contract with the Bifranchisor?
How long is a Bifranchise license valid for?
How much will the Bifranchisee license cost?
Will the cost of the Bifranchisee licence change in the future?
When will the Bifranchisee pay for the license?
Is Bifranchise license fee refundable?
Can the Bifranchisor finance Bifranchise license?
Once purchased, can the Bifranchise license be resold or leased out?
Do I have to establish a new business to operate Bifranchise or can I use my existing business?
What working capital should the Bifranchisee have?
What is the expected Bifranchisee’s yearly income?
What products will the Bifranchisee offer?
Can Bifranchisee work only with limited categories of products?
Can Bifranchisee handle commodities?
When will the Bifranchisee place an order?
What goods or services will the Bifranchisee are required to buy from the Bifranchisor?
When exporting a product what percentage can the Bifranchisee add to the cost price?
How much profit (percentage) will the Bifranchisee make when exporting?
When importing what (percentage) can the Bifranchisee add to the selling price?
What is the expected annual turnover per country?
Can Bifranchisee distribute and/or wholesale any or all of the products he will import?
Who will pay for marketing in Bifranchisee’s territory?
Can Bifranchisee get involved in services related to International trade?
Can Bifranchisee outsource any of the services offered by the Bifranchise Network?
Can Bifranchisee offer services related to transactions he/she is involved in?
FAQ ABOUT THE DIRECTOR
What is a Director’s role?
Who will be suitable to become a Director?
How long will the Director’s term be?
How will the Director be compensated?
Can a Director be appointed to more than one country?
Can a Non-Executive (country) Director be promoted?
How can one Director handle the workload for a large country?
FAQ ABOUT THE BIFRANCHISE CONCEPT
What is a Bifranchise?
BiFranchise is a system of business cooperation where one party (Bifranchisor) grants another party (Bifranchisee) the rights to use its business name, business methodology and the Bifranchise Network exclusively in the nominated territory for a specified period of time. Unlike a regular franchise, the Bifranchise is a two-way business system where Bifranchisee purchases from as well as supplies products to the Bifranchisees within the network
What is the difference between Bifranchise and franchise?
The major differences and similarities between the franchise and the Bifranchise system is that in franchise, the franchisor supplies majority (if not all) of the products and/or services to be sold/performed by the franchisee to the public and the franchisees are not permitted to purchase products or services from any other source – ON THE OPOSITE - the Bifranchisee can purchase products he selects from the Bifranchisor and also supply products to the Bifranchise Network
Why Bifranchise is better than franchise?
Franchise offers limited (territory and product-lines) revenue potential whereas Bifranchise offers unlimited territory (whole country) and product lines. Also, franchisees must compete with each other trying to serve the same customers – ON THE OPPOSITE - Bifranchisees have total exclusivity for their home country or territory, so there’s no competition
How old is the Bifranchise concept?
GIA Trading Group first used the word Bifranchise (two-way franchise) in November of 2008 as it was establishing its international network of trading companies
Are there any similar concepts in the world?
No, this concept is unique and revolutionary as it provides utmost ease and safety when trading in goods not manufactured by or originated from your home country
What are the advantages working under the Bifranchise system?
a) under the Bifranchise concept, sourcing of products is performed by a Bifranchisees (locally in their home countries) who are competing in purchasing the best quality products at the best possible prices;
b) since the GIA Trading Group Bifranchise Network operates in a large number of countries, the purchasing power of the network is huge and big orders can result in bigger discounts, consequently, our purchasing price will be much better than that of a single buyer
c) the GIA Trading Group Bifranchise Network will offer own brand names exclusive to the Bifranchisees
d) brand name recognised worldwide that provides a chance for large negotiating advantage to Bifranchisees
e) worldwide advertising power that attracts buyers and sellers
In how many countries will the Bifranchise concept operate?
We will strive to have a Bifranchisee in every country worldwide
How will the international transaction be converted to local transactions?
Transaction procedures will be provided to the approved Bifranchisee and Directors only
What kind of products will be offered by the Bifranchise?
All manufactured goods and commodities
What services related to international trade will be offered by the network?
Shipping, customs clearance, marketing, translations, product localisation, business consulting, business services (registrations, accounting, legal), OEM, ODM, branding, etc.
Who will finance the transactions?
Transaction procedures will be provided to the approved Bifranchisees and Directors only
How will the Bifranchisor control the transactions?
Transaction procedures will be provided to the approved Bifranchisees and Directors only
What measures will there be in place to control fraud?
All orders will be verified by FOUR INDEPENDENT parties (Bifranchisee & Director in exporting & importing countries respectively)
How will the Bifranchisor select the supplier for an order?
Transaction specs will be provided to the approved Bifranchisees and Directors only
Why will the Bifranchise be able to compete in pricing?
Because of our buying power, our worldwide sourcing network and the ability to buy under local agreements
FAQ ABOUT THE BIFRANCHISOR
Who is the Bifranchisor?
Bifranchisor is the GIA Trading Group, a ten-year group of companies specializing in all aspects of international trade and import-export transactions
How long has the Bifranchisor been in business before establishing Bifranchise?
Over ten years
What is the Bifranchisor’s expertise?
Bifranchisor has been involved in international trade since 1998 as an operator of an international trade agency in 113 countries, a commodity brokering portal in 80 countries and exporter’s e-marketplace
What marketing support will the Bifranchisor offer?
Multilingual worldwide marketing, localised B2B e-marketplace and pay-per-click B2B search engine, multilingual pay-per-click exporter search engine, and multilingual export import e-marketplace
FAQ ABOUT THE BIFRANCHISEE
How can I become a Bifranchisee?
There are several application forms that will be sent to you upon request
Are there any limitations as to what business can become a GIA Trading Group Bifranchisee?
Generally, there are no limitations; however, each case is reviewed separately
If my country already has a Bifranchisee, can I also purchase a Bifranchise license? Existing BiFranchisee (in your country) may either issue you a sub-license or integrate your business into his network
What are the requirements to become a Bifranchisee?
In general, the following is required: knowledge of international trade, excellent business development skills, ability to place imported products in your market and source manufactured goods and commodities from your country or territory, ownership rights or financial means to lease or purchase a warehouse with adequate space for offloading and storage of at least four 20-40 feet containers, working capital and or access to banking facilities, etc
Can a Bifranchisee be appointed to more than one country?
Bifranchisee can be appointed only in one country, the country of residence
Can there be more than one Bifranchisee per country?
Depending of the size of the country there can be one or more Bifranchisees per country and there can also be Bifranchisees holding exclusive one or more categories of products per country or territory. Bifranchisees will also be permitted to issue sub-licenses or establish partnerships under their management
How big can the Bifranchisee’s territory be?
Bifranchisees can have exclusive license for the whole country he’s permanently residing in or a part of the country or even represent a number of product categories
How can one Bifranchisee handle the workload in large countries?
Bifranchisees can establish branches, partnerships, enter into JV agreements, or issue sub-licenses. Bifranchisees that have full control of the country’s operations but all external transactions from his country will happen between the Bifranchisee and Bifranchisor
When will the Bifranchisee sign the contract with the Bifranchisor?
Once potential Bifranchisee has complied with the licence-granting requirements and agreed to all terms and conditions of the Bifranchise Agreement
How long is a Bifranchise license valid for?
Bifranchise license is valid for ten years with a possibility of extension. Options are available for a trial period under special conditions as negotiated on a country-by-country basis
How much will the Bifranchisee license cost?
This information will be disclosed to approved Bifranchisees only
Will the cost of the Bifranchisee licence change in the future?
Yes, license purchased in the year 2010 will cost more and there will be yearly increases after that, reflecting the increased value of the network.
When will the Bifranchisee pay for the license?
Bifranchisee will pay for the Bifranchise License upon entering into the ten year license agreement with the Bifranchisor
Is Bifranchise license fee refundable?
Bifranchise license fee is non-refundable
Can the Bifranchisor finance Bifranchise license?
Bifranchisor can allow qualified applicants to pay part of the fee upon signing the agreement with the remainder payable in instalments
Once purchased, can the Bifranchise license be resold or leased out?
Yes, provided it does not violate the terms of the Bifranchise License Agreement and Bifranchisor has approved the replacement Bifranchisee
Do I have to establish a new business to operate Bifranchise or can I use my existing business?
You can either establish a new business entity or operate your existing business; however, in both cases Bifranchisee will be required to operate under the GIA Trading Group (COUNTRY) name
What working capital should the Bifranchisee have?
Bifranchisee must be able to run his business and purchase goods (from the Bifranchise network) that have been requested by the BiFranchisee’s customers in his home country
What is the expected Bifranchisee’s yearly income?
Bifranchisor expects the average gross income in the first full year of operations for a country exclusive Bifranchisee operating in a small developed country or medium developing country to be between €2,500,000 and €3,500,000.
For medium developed countries and large developing countries for the first year to be between €5,000,000 and €7,000,000.
For large developed economies, the earnings should reach €10,000,000 to €15,000,000 in the first year of operation. We estimate the increase to double every year for the next 2-3 years.
Earnings will very according to the number of categories the Bifranchisee has selected to work with and the size of the territory the Bifranchisee has selected to operate in.
What products will the Bifranchisee offer?
Bifranchisee will offer all manufactured goods and commodities that will be requested by buyers through the GIA Trading Group Bifranchise Network
Can Bifranchisee work only with limited categories of products?
The Bifranchisee can select to work with a number of categories of manufactured goods and commodities. Any prudent business person will limit neither his revenue streams nor his earnings. For as long as there are buyers available to place orders for purchasing manufactured goods or commodities.
Can Bifranchisee handle commodities?
Bifranchisee will transact in any and all goods (including commodities) requested by his customers located within his territory
When will the Bifranchisee place an order?
Bifranchisee can place an order at any time provided he has adequate funds to cover the order and either wants to stock the goods or has secured an order from his buyer
What goods or services will the Bifranchisee are required to buy from the Bifranchisor? Bifranchisee will purchase all goods and services (requested by his buyers) from the Bifranchise network
When exporting a product what percentage can the Bifranchisee add to the cost price? When exporting, the Bifranchisee will not add any percentage on top of the cost price
How much profit (percentage) will the Bifranchisee make when exporting?
This information will be disclosed to the approved Bifranchisee only. Bifranchisee will earn % of the profits earned from each transaction
When importing what (percentage) can the Bifranchisee add to the selling price?
In general, Bifranchisee will earn higher % of the profit when importing goods than when he is exporting. The percentage of profit will depend on the purchased price and the market conditions in his territory
What is the expected annual turnover per country?
A country exclusive Bifranchisee for small developed countries we expect the turnover to reach at least €50,000,000 per annum. For non exclusive Bifranchisee the earnings will depend on the size of the exclusive territory or the number of exclusive categories they will work with
Can Bifranchisee distribute and/or wholesale any or all of the products he will import? Yes, provided distribution or wholesale business is done under the BiFranchise License and GIA Trading Group (COUNTRY) name
Who will pay for marketing in Bifranchisee’s territory?
Bifranchisee will pay for marketing in his territory
Can Bifranchisee get involved in services related to International trade?
Bifranchisee can perform services like shipping, customs clearance, insurance, etc. providing the service is charged at a cost price only when dealing with the Bifranchisor
Can Bifranchisee outsource any of the services offered by the Bifranchise Network? Bifranchisee must offer or outsource all services requested by the network and its clients. These services may be translations from and to the local language, product localisation, product placement, consulting, etc.
Can Bifranchisee offer services related to transactions he/she is involved in?
Bifranchisees can perform any and all services related to a transaction they are involved provided they will charge at cost prices only when dealing with the Bifranchisor
FAQ ABOUT THE DIRECTOR
What is a Director’s role?
Main Director’s responsibilities will be to represent GIA Trading Group in director’s country or territory and develop business opportunities and to verify all incoming and outgoing products (packed either in containers or in bulk) are in strict compliance with the quality and quantity ordered
Who will be suitable to become a Director?
An individual who is self-motivated and has an ability to work in an unstructured environment (strong operational mindset, decisive, with a "get it done" and “whatever it takes” mentality) and an experienced salesperson with a background in one or more of the following: consumer and manufactured goods, logistics, transportation, import-export products or commodities
How long will the Director’s term be?
There is no specified term for Directors. For as long as Director performs his duties to the satisfaction of the Board of Directors, the Director will not be replaced
How will the Director be compensated?
Director’s compensation is performance based (% of the profits from transactions within his territory). The amount of compensation will be disclosed only to approved
Can a Director be appointed to more than one country? Director can only be appointed to the country he’s permanently residing in
Can a Non-Executive (country) Director be promoted?
Yes, Non-Executive Director can be promoted to the Executive position such as Regional Executive Director or other position at the sole discretion of the Board of Directors
How can one Director handle the workload for a large country?
Director can hire personnel to assist him in his duties
