Reflex Group. chains in the region namely Carrefour and Hyper Panda as well as Geant & The Sultan Center.
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2 2 ABOUT US Reflex Group REFLEX follows a vertical business model, primarily dealing in Fashion apparel and accessories. We tightly control the supply chain hence can provide our partners with great value. The Managing director Mr. Mahesh K. Pagarani was born into a business family. After his formal business education in the United States of America he returned to Dubai in 1993, that was when he decided to set up this company, instead of joining his father s well established business. Since then the business has grown substantially into a conglomerate of tightly knit companies all helping each other grow. The team is composed of young professionals who interact, dynamically, interdependently, and adaptively toward a common and valued goals. There is a very low rate of turnover in the employees as most are well paid and have good bonus/loyalty program that is result oriented. The head office is based in Dubai which puts it in an ideal point of transit for the products that are brought from Asia and supplied to the entire gulf region and in the future beyond Supplied to major retail outlets throughout GCC Supplied to Hypermarkets and signed supplier agreements with the two of the most prominent chains in the region namely Carrefour and Hyper Panda as well as Geant & The Sultan Center Launched Reflex Value Concepts LLC, the company s retail division Established Reflex Holdings FZCO, a one stop logistics point to support all group activities retail Stores in Dubai, Sharjah, and Al Ain. Reflex passed the independent evaluation of Verification International and achieved ISO 9001:2008 Certification th store opened Set up representative office in China 2015 Opened 11th store at Ajman Markets UnionCooperative Society Hypermarket Al Rumailah
3 3 WHERE WE ARE The first Reflex store opened its doors in Dubai on September 29, 2011 and proved to be an instant hit. After three months, we opened our second store in Dubai. Within the first year of operations, Reflex o- pened its third store in Dubai. With the success of three stores in Dubai, Reflex o- pened its first store in Sharjah. Reflex continued to expand its customer base by opening three new stores in three emirates; Dubai, Sharjah and Al Ain. We opened our 9th and two new stores under fit out. Reflex aspires to be the market leader in fashion apparel and accessories retail, with plans of opening 40 stores in GCC in the next 3 years. REFLEX ventured in Store and Store concept. The pilot store was opened in the fashion retail section of Ajman Market Cooperative Society (UCS).
4 4 OUR MISSION To be the first UAE brand that is a market leader in fashion retail industry. By providing desirable fashion apparel and accessories for men and women, quality service by professionally trained team members, outstanding value through our strong and direct logistics links with manufacturers, and finally convenience through our ever expanding network of stores accross the GCC to our valued customers who are at the core of our business.
5 5 OUR APPROACH Our Strategy is derived from the value behind a Reflex Action. An action that illustrates the base of human nature - to respond and thrive. We set up retail outlets which not only provide High Fashion and Value for Money but also respond to the latest trends in fashion. Not everyone can afford a lavish and expensive wardrobe, but that does not mean they can t buy fashionable attire. It is easy to get caught up in an obsession with pricey brand name clothing. We aim to develop affordable options for the middle class sector that are fresh and trendy.
6 6 OUR PRODUCTS At present, the company has 3 different product groups and is constantly developing / designing new products. MEN S Jackets Blazers Suits Trousers Jeans Shirts T-shirts Sweatshirts & Hoodies Knitwear Shoes Bags Trousers Sunglasses Belts Coats Necktie Wallets LADIES Coats Outerwear Dresses Shirts Trousers Jeans Skirts Knitwear T-shirts Shoes Handbags Sunglasses Bags Belts Sweatshirts & Hoodies Hair Accsessories Jewelries Wallets KIDS Boys T-shirts & Tops Trousers Shorts Jeans Shoes Bags Girls Dresses T-shirts & Tops Shorts Skirts Jeans Shoes Bags Hair Accessories
7 OUR STORES 7
8 8 WHY FRANCHISING? Why Franchising? Franchising is a method of marketing goods and services that has almost no limits in terms of the types of business categories to which it can be applied. Typically franchising involves the payment of an initial franchise fee and ongoing royalties, and, in exchange, the franchisee receives a licence from the franchisor to conduct business under a brand name or system (or both) for a specified period of time. Franchising offers business buyers the opportunity to be in business for themselves, but not by themselves. Franchisees own and operate their own business with the backing of an established, proven retail approach and management system. The benefits of being part of a franchise system are significant. The combined strength of a multi-brand franchise system provides franchisees with: the franchising system. nity. brand, and ning programs.
9 9 FRANCHISE SUMMARY On its 20th year of successful business operation and opening its 9th RTW shop, Reflex started to receive inquiries and requests from independent business owners wanting to open franchises. This prompted the company to embark into another endeavor by opening its doors and sharing its success story to franchisees. Franchise Selection: Completed application to be submitted to the franchisor for approval. Location: Once application is approved free guidelines on location procurement will be provided. Investment: The initial investment for an individual unit ranges from AED 500, to AED 1,200, Figures do not include any extensive exterior renovations, rent and working capital. Store: Upon receiving the retainer fee and initial LC. The franchisor will provide concepts, artworks etc. All other support during fit out will be available. Goods: During sale, promotion or clearance the franchisor may provide merchandise at discounted prices. The franchisor will provide merchandise at company wholesale prices to the franchisee. The franchisee will sell products at company E price which is retail price. The minimum guaranteed margin will be 50%. Agreement Term: Five (5) plus an additional 5 year renwal option. The franchise is based on an agreement entered into for mutual benefit that will be signed after the application is approved.
10 10 SUPPORT SERVICES We want you to succeed! To help you achieve this, we will ensure that you have the maximum opportunity and support to do that. Our objective is to build sales by focusing brand awareness. Selection Criteria There are two important investment that we require from franchise applicants apart from financial investments: Lifestyle investment the time, commitment and dedication needed to successfully conduct the business; and Emotional investment the investment in such a business will, almost without exception, have an impact upon or effect on more than one person. Reflex franchise team personally inspect and approve each franchise application location prior to final approval of the franchise application. The team will also provide guidelines for location hunting, survey premises, logistics, etc. Branding the Shop Reflex franchise team will provide concepts, artworks and brand the complete interior of the shop, wall colors, position of fixtures, etc. The company will send its own team members to prepare the merchandise as per perspective date of opening all support during fit out will be available. The costs of travelling, recruitment etc. will continue to be adjusted from the retainer. Training Initial training will be provided in preparation, merchandising and Retail Standard Operation Procedure. Reflex will also provide store opening assistance. Continual training, advice and support will be available from the company s franchise team. Marketing Activities The focus of our marketing program is to promote the corporate brand. Marketing activities includes but not limited to radio, print advertisements and digital media. Store promotions occur regularly throughout the year. These promotions are supported by advertising in suitable mediums. Our promotions aim to increase brand awareness, customer walk-ins and sales. Local store marketing support is also available to all franchisees. Local area marketing is vital to build community relationship and local profile of each store.
11 11 COMMERCIAL TERMS BRAND Unit franchise fee Term of franchise Franchise renewal Renewal fee Royalty % on sales REFLEX AED 25,000 in UAE AED 50,000 outside UAE 5 years years Same as franchise fee N/A Marketing fee % on sales 3% Bank guarantee Local store marketing POS system by master franchisee Ideal area of outlet To be confirmed As per actuals Linked to Master Franchisee 1,500-3,500 sq. ft. Reflex Value Concepts will provide the following: Grottini Retail Environments to provide architectural drawings and perspectives.
12 12 SELF ASSESSMENT Is Reflex the right business for me? At Reflex, we take the process of selecting our Franchising partners very seriously. We do not require that you have experience in running a retail store, rather that you have the right personality, outlook and aspirations. If you are wondering whether you are the right type of person to become a REFLEX franchisee, start by asking yourself the following questions: 1. Do I have the strong commitment and determination required to maintain the expected Reflex high standards? 2. Do I have a true passion for customer service excellence and the ability to follow set systems and procedures? 3. Do I have a strong work ethic and belief in myself, with a track record of success? 4. Am I prepared to have personal day-to-day involvement in my business? 5. Last, but not least, do I qualify financially? If you can honestly answer YES to all of these questions, then you have met the initial criteria of a successful Reflex franchisee.
13 13 FREQUENTLY ASKED QUESTIONS Q. What type of franchise is available? Reflex grants individual agreements and may grant exclusive territory on a case by case basis. Reflex offers trendy fashion at outstanding value. The size of a typical Reflex store is between 1,500 sq. ft. and3,500 sq. ft. Q. How much is the initial investment for a Reflex store? The initial investment for an individual unit ranges from AED 500, to AED 1,200, Figures do not include any extensive exterior renovations, rent and working capital. These amounts represent the net investment required. We suggest that franchisees have more than half of the amount in cash and finance the other half. We prefer that franchisee not carry a large debt service. DESCRIPTION LOW (AED) 1,500 Sq. Ft. HIGH (AED) 3,500 Sq. Ft. Initial Cost (Survey etc.) 20, , Utility Deposits Fit-out Furniture, Fixtures, Equipment In store Branding IT, POS Hardware & Software Product Investment Insurance Office Equipment & Supply Grand Opening Subscription (Telephone etc.) Licenses & Permits Legal & Accounting Franchise Fee 1, , , , , , , , , , , , , , , , , , , , , , , , , , Total Investment (in AED) 500, ,200,000.00
14 14 FREQUENTLY ASKED QUESTIONS Q. How do I secure a new location? New locations approved for development by Reflex franchise team may be provided to you during the qualifying process. You may also submit a location that you find. We will survey your location and provide you analysis of its viability for development. Q. Can I use my contractor to build out my store? Yes, our franchise team can also recommend a contractor who is experienced with building Reflex stores. We suggest you secure several bids before signing a construction contract. Q. Can I sell my store? Yes, you may sell your store at any time after opening, provided Reflex approves the buyer. Q. Is there a marketing fund? Yes, all franchisees contribute 3% of their gross sales to a marketing fund. All group marketing activities are funded from these contributions. Q. What is the term of Reflex Franchise Agreement? The initial term of the Franchise Agreement is five years from the date the Franchise Agreement is signed. The franchise is renewable for additional five years terms without any additional franchise fee provided you have complied with the provisions of the Franchise Agreement. Q. What is my next step? Simply complete the Franchise Application Form and return it to us. Upon receiving the form we will contact you. Reflex Franchise team will determine if you meet our qualifying standards.
15 THE BRAND 15
16 OPENING SOON! AL WAHDA ST., SHARJAH & DRAGON MART EXPANSION, DUBAI
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