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DemonDeli Thick Chicken Chop
Introduction to International Distribution Model

The distribution model uses the “Nanny Agent” approach. The headquarter establishes a processing plant at the city where the distributor is located and train the management trainees to help the distributor expand its business rapidly.

Advantages of Distribution:
1. The key to branding lies in the quality – quality of raw materials, quality of meals
2. The headquarter takes a direct management approach to set up a processing plant locally. This will provide the distributor and its franchisees with the best raw materials
3. The headquarter trains the management trainees locally and helps the distributor with franchisees educational training and supervision of the shop opening
4. The Taiwanese R&D team will introduce popular gourmet dishes on a regular basis. The headquarter will add hot Taiwanese products based on local sales.

Regional Distribution Terms:

1. License fee: US$ 200,000 to US$ 500,000
2. The first local shop is funded by the distributor and managed by the headquarter. The distributor receives 80% of the profit while the headquarter receives 20%.
3. The distributor can recruit franchisees locally, and the franchisee fees is determined by the distributor. All profit goes to the distributor.
4. For each franchisee that the distributor sets up, a royalty of US$ 5,000 must be paid to the headquarter
5. The headquarter has the right to set up headquarter wholly owned stores locally to help the distributor in developing local market brand awareness. However, all franchisee related operations are conducted by the distributor.
6. Regional Restrictions: For cities with population of less than 4 million people, can choose distribution in 2 or more cities
7. The distribution period is for a five-year term, contractual renewal is free

Headquarter Support:
1. The headquarter sets up a processing plant locally and provides raw materials to the distributor
2. The headquarters helps the distributor with the entire operation from site selection, shop furnishing, staff training, operations and management, and so forth
3. The headquarter helps the distributor with the training of shop opening of franchisees
4. The headquarter staff helps the distributor to supervise the quality of operations of the local franchise shops
5. The headquarter assist with the formulation of related marketing programs and adjust operational strategies at all times based on local conditions
6. Continuous research and development of new products, and based on sales volume, to replace old products with new ones, so that popular products and meals are continuously provided at the stores

Method of license fee payment:
30% at the signing of distribution contract
60% upon rental of the processing plant locally by headquarter
10% upon opening of the first shop