What is licencing ?
Les Moulins La Fayette’s licencing concept is, first of all, the transfer of the exploitation rights from the licensor M Johnny Jeulin, to an independant entrepreneur, who, after adhering to our commercial philosophy, promotes our creations or selection under a network banner.
The licencing concept, not like the franchise, allows the licencee to share skills and responsabilities. The dealer doesn’t have to worry about production, transformation, creating brand image, no even national marketing. In return, this concept requires that the dealer commits to contribute with his own skills (local marketing, sales, customer service) in creating a successfull business.
Unlike a franchisee who has to pay royalties on his sales revenue, requiring bank reconciliation and results analysis at the end of each month, our royalties are due only when an order is placed, and is evaluated on the order volume of each dealer.
The sale price for each item is suggested by the licensor; but the dealer can make any needed adjustment based on the operating expenses, competition status and local market.
The business location is a major issue in the success of the dealer. For that reason and to have the best chances at success, we have built an association with a specialised firm in research and evaluation of potential locations. The firm will go on the site to evaluate and compare all the potential and possibilities.
The dealer has the obligation to decorate his store in respect of the design created for Les Moulins La Fayette. The licensor offers detailed plans to tht effect (furniture, decoration, layout, etc.) and a list of materials to use.