1. What is the initial franchise fee?
• Master franchise/Level A – US$100k
• Single unit franchise/Level B – US$20k

2. How much is the monthly royalty?
10% of the gross revenue is payable on every 5th of the month.

3. What is the duration of the Franchise Agreement?
5 years with another 5 years renewal fee (50%) of the initial franchise fee.

4. How much is the required start-up investment?
US$100K – 200K. Includes franchise fees, deposits, capital expenditure and equipment cost.

5. What qualifies you as a Franchisee?
You will need the approval of the SHINES Management, dedication in making a mark in the education industry, adequate investment capital to grow the business and relevant management skills.

6. How long does it take to get a Return On Investment (ROI)?
Based on our calculations, the Return On Investment (ROI) is between 1 to 3 years.

7. Is the Franchise transferable?
SHINES seeks long-term relationships with all our franchisees. If you wish to transfer Franchise ownership, you must seek the approval and obtain authorisation from the SHINES Management.

8. How long does it takes to open a new centre?
Upon signing the Franchise Agreement and with the relevant government approval, the Franchisee will need between 3to6 months for site selection, renovation, recruitment, training and marketing before commencing centre operations.

9. What’s the ideal size for a SHINES Lingua centre?
The ideal size of the centre is based on the population and density of the city. You can operate in an area of between 250 – 1000 sqm which includes 5-20 classrooms, reception area, multi-media computer room, library, meeting rooms, store room, and offices for centre manager, academic head, and teachers.

10. How to select a suitable site and who is responsible for the design of the new centre?
It is advisable to select a convenient location that is easily accessible by public transportation. Upon the Franchisor's approval, the Franchisee will be provided with a set of furnishing standards and centre design for references. The Franchisee will appoint their own architect and renovation contractor to provide furnishing and design plans for the Franchisor's approval before renovation.

11.How many employees will be needed? What skills are required?
Normally, the centre requires a Centre Director, Academic Coordinator, 4 – 10 Teachers, 2 – 4 Course Consultants, 1 – 2 service staff and an Accountant/Book-keeper.
The Centre Director functions as a General Manager. He should possess good management skills, sales and marketing experience, ability to communicate in English fluently and manage both academic and non-academic staff.
The Academic Coordinator manages the academic team. He facilitates the communication between administrative and academic departments and is responsible for maintaining the quality of all programs.
All teachers should preferably be native-speaking English teachers. The Franchisor will provide recruitment and selection support for Franchisees but Franchisees are allowed to use their own recruitment channels.

12. Is there any training provided?
The Franchisor will provide initial training to a Franchisee, their Centre Director and Academic Coordinator. The Ffranchisee will have to pay for their own incidentals (e.g. transportation, accommodation and food).

13. How to develop the market?
It is advisable that the Franchisee commit approcimately 10% of monthly revenue to local marketing. The Franchisor and Franchisee will collectively do regional or national marketing and promotion. Franchisees will contribute up to 50% of the allocated local marketing budget to regional and national marketing.

14. How does the Franchisee report to the Franchisor?
Monthly enrolment report: Report on student intake and student information
Monthly operations fee report : Payable on the 5th of every month
Half yearly and annual financial statements: Within 90 days after financial year end

15. What are the pitfalls of franchising?
• When the Franchisor is an individual and not a registered business enterprise
• When the Franchisor has an unregistered trademark
• When the Franchisee does not have appropriate management skills and assume that buying a franchise means guaranteed success through acquiring franchise information
• When the Franchisee has not been successful in managing a profitable business
• When the Franchisee is a uncooperative and has a high staff turnover, and believes that franchising is a “fool-proof” business
• When the Franchisor guarantees that so long as you invest, the franchise is a “fool-proof” profitable business
• When the Franchisor does not wish to discuss the legal terms in the Franchise Agreement

16. How to avoid the pitfalls?
Potential Franchisees must be cautious and have full knowledge and understanding of the Franchisor's company profile, as well as the market research and feasibility study of the business.
• Learn: Laws, regulations, knowledge of franchising
• Visit: Franchisor and other franchisees
• Analyze : Market potential and return on investment
• Evaluate: Business potential, finances for capital investment and management skills

17. What are the requirements of a SHINES Lingua franchisee?
We are looking for individuals/companies who:
• Are dedicated to starting an education business
• Have previous business/working experience in sales and operations
• Have substantial start-up capital and capital for business development.
• Have high integrity and responsibility
• Business and market familiarity in a specific locality