Franchise Model | KITSTORE.ch

KITSTORE - Basic Terms of the Franchise Concept

1. Subject of the Agreement

The franchisor (KITStore s.r.o.) grants the franchisee the right to operate a store under the KITSTORE brand and to utilize its business model, brand, and products. The franchisee commits to adhering to the franchisor's standards.

2. Rights and Obligations of the Franchisor

• Grants the franchisee a license to use the brand.
• Provides know-how, including manuals, training, and support.
• Ensures continuous supply of LEGO® sets and other products.
• Promotes the brand at the national level.

3. Rights and Obligations of the Franchisee

• Operate the store according to the franchisor’s guidelines and standards.
• Comply with the franchisor’s pricing policy and marketing strategy.
• Pay franchise fees (initial fee, ongoing turnover-based fees).
• Ensure the quality of services and staff training.

4. Financial Terms

• Initial Fee: A one-time payment for access to the brand and know-how.
• Ongoing Fees: A percentage of turnover paid on a monthly basis.
• Store Setup Costs: The franchisee bears the costs of equipping and operating the store according to the franchisor’s standards.

5. Location and Exclusivity

The franchisor determines the store location and may grant the franchisee exclusivity in a specific territory.

6. Contract Duration and Renewal

• Standard contract duration: 5 years.
• Renewal option under predefined conditions.

7. Contract Termination

• The contract can be terminated under strictly defined conditions, such as a breach of contractual obligations.
• Upon contract termination, the franchisee loses the right to use the LEGO® brand.

Variants of Store or E-commerce Operation Under a Franchise Agreement

1. Store in a Shopping Mall

• Located in a high-footfall shopping mall.
• Focus on attractive store design and interactive zones for children.
• Access to the store throughout the mall’s opening hours.
• Regular events and workshops related to LEGO® sets.

2. Standalone Store in a City Center

• Targeted at families with children and tourists.
• Highly visible to pedestrians and passersby in the city center.
• While shopping malls may have multiple competing stores, city centers often have less concentrated competition.

3. Online Sales in Cooperation with the Franchisor

• The franchisee operates an e-shop integrated with the franchisor’s B2B system.
• Goods can be picked up directly from the franchisor’s warehouse or delivered to the franchisee’s location.
• The franchisor provides support in logistics and warehousing.