OWNING BYORK FRANCHISE
Owning BYORK Franchise
BYORK is currently accepting inquiries for franchising and licensing opportunities globally.
If you are interested in a specific shop address or opening a BYORK location anywhere worldwide, please visit the BYORK Corporate Site for more information. Once you find interest in becoming part of the BYORK international brand, we will provide you with brief of BYORK’s corporate affairs and ventures, and overview of BYORK’s retail stores concept. Further we will obtain you with relevant information of the different divisions and collections, and present you with our new collections.
Owning and operating your own BYORK franchise can be both a rewarding and successful investment. The management of your franchise focuses on:
Buying and merchandising BYORK products in your own store.
Operating your retail location.
Overseeing the operations and your staff.
Developing and maintaining relationships with your customers, suppliers, and industry partners.
What you can expect as BYORK Franchisee:
The BYORK Fashion chain offers its Franchise system throughout the European Union, the U.S and in major Capitals and Cities of the rest of the world. The BYORK Franchise system places a comprehensive system that covers all aspects relating to product marketing and Franchise management at your disposal. We offer you the business “Key in Hand” so that you can focus your effort exclusively on maximizing your sales. BYORK does the rest:
Always informed of the latest tendencies, provides you with a collection that is complete extensive, varied and combinable. Serves you in accordance with your needs, avoiding possible anticipated investments and accommodations of stock. Carries out of decoration project for your store. Train your sales and management team. Changes the sales window display on a regular basis. Continues assessment on displaying and selling items, by means of periodic visits by product and merchandising professionals.
New franchisees receive intensive in-store training to ensure that they are equipped with the knowledge and understanding they will need to run your store.
If you would like to own your own BYORK franchise, please read our list of frequently asked questions, it’s the important first step in the process.
This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the appropriate State. Such filling does not constitute approval by the Department of Law. There may be laws in your state with which we have to comply before we sell you a franchise. You should consult with your state government if you are not familiar with whether or not your state has such laws. We will be in compliance with these laws before we sell you a franchise. No offer is being made through the website. Should you provide us with information through the site or in any other way. It does not impose on us any obligation to make an offer of a franchise to you. Nothing in the site constitutes or is intended by us as an offer to you.
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Below are some of the most frequently asked questions of prospective franchisees. It is important to read this list carefully before filling out a franchisee questionnaire. The list of abbreviated questions and statements below apply to only our network in North, Central and South America and to the Caribbean, (Europe network presented separately), and are also subject to our complete terms and conditions, as contained in our most resent Uniform Franchise Offering Circular (UFOC).
BYORK is an internationally recognized brand. If you desire information to open an BYORK shop outside of your specific geographic areas outlined above, please visit www.byork.us.
For practical purposes, BYORK Licensing, the firm with exclusive BYORK franchising and licensing rights in the Western Hemisphere, will be referred to as BYORK.
The following issues are extracts from our Franchise Agreement (FA) and are edited for presentation purposes on this web site. All of these issues are subject to the full terms of our FA.
- What do I need to open a BYORK franchise?
An affinity and familiarity with the BYORK brand and product, so that you are able to demonstrate a shared enthusiasm for the BYORK product to your customers.
An entrepreneurial spirit.
An interest and ability to own and operate your own business within an established model.
The time and capabilities to open, and ultimately nurture and grow, a new retail location.
The ability to demonstrate a net worth of over $500,000 and liquid assets of over $250,000.
- How much is the initial BYORK franchise fee?
The initial franchise fee is $25,000 for a franchise’s first BYORK mono-brand shop. The initial franchise fee is $15,000 for a franchisee’s first BYORK “corner” or “shop-in-shop location”. The franchisee store has to be located in a major street or shopping center.
- What are the royalty fees?
Year 1 pays 0% royalty on net sales.
Year 2 pays 1.5% royalty on net sales.
Year 3 pays 2 % royalty on net sales.
Year 4 and forward pays 3% royalty on sales.
- What support can I get for my fees?
BYORK is an internationally recognized brand of upscale, women’s
apparel and accessories.
We provide a worldwide network of BYORK retail and/or shops.
We provide comprehensive data and information about your location selection regarding demographic and psychographics profiles and buying trends of the consumer in the trade area where you propose to open a shop.
We provide guidance governing the suggested standards and quantities of certain products, services or equipment you procure from us. We sell the BYORK product to you.
We sell any printed paper products bearing the proprietary marks and other non-proprietary items bearing the proprietary marks.
We will provide you with a layout for the interior of a typical BYORK shop and set of typical preliminary store manual and construction plans and specifications for furniture, fixtures, lighting, equipment, decoration, fitting, assembly, flooring, manikins, coat hangers and storeroom.
We may from time to time conduct an annual conference, convention or training sessions.
We shall provide on-site training and assistance concerning the selling, merchandising, displaying and/or marketing of the BYORK products immediately prior to and following the commencement of operations of the shop. You may request additional onsite training and/or assistance at any time, so long as such requests are communicated in accordance with those guidelines specified in our manual or otherwise.
We will make available through internet/intranet web site a copy of our confidential Franchise Operating Manual and all of its component manuals, written bulletins, facsimiles or other written notices to help more effectively operate and administer a shop.
We have, for North American shops, a comprehensive national advertising program.
We have, for all shops an integrated POS (Point-of-Sale) software program for sales, customer service, marketing, ordering, inventory control and management reporting. Transfer of an opening team made up of a window dresser, computer expert, supervisor, merchandiser and company representative responsible for the store that stays for 3 weeks period. Store manager special training. Continuous assistance by a supervisor.
Fee does not include: public work, alarm system, air conditioning and heating, cash register, information systems, sound systems, transfer or transport, transport insurance for goods at the franchise’s expense. Guaranteed merchandise via bank guarantees.
- What are the invoice terms on orders?
First year invoice terms are 90 days ex-our Factories,
Second year and forward are 60 days ex-our factories.
- What about marketing fees?
USA/Canada Franchisees will invest 2%-4% of turnover in Advertising & Marketing beginning in the second year of the shop’s operation. This fee helps contribute to national advertising in upscale publications such as Vogue, Harper’s Bazaar, Women’s Wear Daily, Fashion of the Times, In Style, and many other upscale national and regional publications. BYORK invests 4% of the deposit franchisee’s turnover in advertising.
- What are the duty arrangements?
Franchisee buys BYORK products duty paid FOB port of entry in USA and Canada.
Central and South America franchisees buy BYORK products ex-our factories (they pay all costs from BYORK warehouse or suppliers distribution center to their shop).
- Is there an Initial Purchase Mark Up Margin?
Currently, the USA and Canada franchisee Initial Purchase Mark Up margin is set at 2.8 (64.3%).
Currently, the Central and South America franchisee IPMU is margin set at 3.03 (67.0%).
- What if I cannot sell all of my merchandise?
We work very hard with all shops to help select the right styles and quantities to adequately serve their trade areas. However, there may occasionally be residual inventory at the end of a season. In that event, BYORK offers the following programs:
New shops may return, at their full cost price paid to BYORK 50% of the BYORK products, and other specific units remaining from the prior seasons fashion collection inventory for their first two selling seasons (first year’s operation) or BYORK will issue a 30% merchandise credit for the entire amount of residual fashion collection at BYORK sole option.
Second year of shops’ operation and forward, BYORK will buy back 50% of franchisees’ prior season’s residual fashion collection at a 30% reduction from the franchisees original buying price from BYORK.
- Are there any special incentives for new franchisees?
In addition to the first year’s special 90- day invoice payment terms, the first year’s royalty fees are waived and then significantly reduced for years two and three. We will waive the first year’s advertising fees and a guaranteed opening inventory merchandise buy-back program. We also offer new shops the following “merchandise credit rebate” program. All new full-line BYORK shops will receive a $50,000 merchandise credit (a form of BYORK construction allowance) towards second year purchases.
All our new BYORK corners or shop in-shop will receive a $20,000 merchandise credit (a form off BYORK construction allowance) towards second year purchases.
- What about exclusive territories?
Each BYORK franchise and licensee will have an exclusive territory, predicated upon the natural trade area surrounding their retail location. BYORK will not open any corporate store nor sell any BYORK franchise or license within your exclusive territory during the time of your agreement.
- What is the average size of a shop?
Sales surface area of approximant 800-1200 square feet in some locations, 300 m 2 in other locations.
- How do I choose a location for my BYORK store?
Because we consider you the resident except in your particular trade area, we expect you to choose your own location, however, we maintain the right to approve or disapprove any location based on careful comparison of demographic studies provided by you and performed by BYORK.
- How long will a franchise last?
7-10 years predicted on the underlying retail shop lease there is also an automatic renewed term of equal length provided lease can be renewed and subject to conditions of the franchise agreement (FA).
The shop location may be moved at the end of the first term, also subject to the terms of the FA.
- What is the total investment required?
There is a $25,000 initial franchise fee; we estimate that the cost of the opening inventory of BYORK products, that you must purchase from us before your franchise shop opens, will range from $75,000 to $125,000, depending on the season. The estimated total initial investment required is from $284,000 to $480,000 (including the opening inventory but excluding real estate purchases).
- Can I sell my franchise?
Yes, the FA is transferable, subject to the conditions of the FA.
- Can I move shop?
Yes. Predicted on the economic realities of a trade area shop may be moved, subject to the terms of the FA.
- What guaranties does BYORK require?
We require a stand by letter of credit in the initial amount of $45,000, as a forum of security for all new shops, subject to our delivery terms and conditions and a personal guaranty of the franchise.
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Our stores are run by franchise partners with a consolidated experience in the fashion
industry and retail know-how with a strong knowledge of the local markets. The
BYORK franchise partnership merges global brand management with local retail excellence. Commitment and winning attitude are the common values shared by our franchise partners.
We offer the franchise system throughout America, Europe, Middle East and Africa
and we provide a complete package that covers all aspects of franchise management.
Fully developed and detailed store concept designed by BYORK.
Store Project Management, Buying support, Retail Marketing, Visual Merchandising, Learning and Development, Performance Management and Store Operations support.
Open a store in your area
If you’d like to open a BYORK franchise store in your market and you have proven experience in the retail sector, as well as the necessary resources, please fill in theform below. We’ll get back to you with more information as soon as we can.
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Below is a detailed questionnaire designed to help BYORK collect information from prospective franchisees in order to determent if they are right fit for the BYORK franchise program.
After you have carefully and completely read the frequently asked questions section and have determined that an investment in a BYORK franchise or license is a good fit with your goals and resources, we ask that you fill out this questionnaire. Please consider each question carefully and answer it completely and as accurately as possible. If you have any questions regarding the questionnaire, please contact us via e-mail to: email@example.com
This advertisement is not an offering. An offering can only he made by a prospectus filed with the Department of Law of the appropriate State. Such filling does not constitute approval by the Department of Law. There may be laws in your state with which we have to comply before we sell you a franchise. You should consult with your state government if you are not familiar with whether or not your state has such laws. We will not be in compliance with these laws before we sell you a franchise. No offer is being made through this website. Should you provide us with information through this site or in any other way, it does not impose on us any obligation to make an offer of a franchise to you. Nothing in this site constitutes or is intended by us as an offer to you.
Franchise Application Form will remain confidential. It describes your interest in creating a BYORK franchise.
This section is temporarily under maintenance; please forward your inquiry through Contact us.
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