QUESTIONS & ANSWERS

What additional costs would be associated with the various License Opportunities & Partner Programs?

As a general rule Licensees, Distributors and Factory Syndicate Partners run their own businesses.  Therefore, all costs associated with the operations and set up of operations in a Licensees country or area would be for the cost of the License Partner.

• Are there any royalty payments? NO! We do not charge royalty fees whatsoever.

• Advertising payments, both to local and national advertising funds. As a licensee local advertising is undertaken by licensees in each country.  Again, each economy and market is different with marketing efforts being tailored and pursued based on local needs.  There are various forms of marketing which we do not wish to disclose here but which we have formulated over literally a number of years of being active in the industry and having gained firsthand experience in both first and third world countries.  These marketing strategies are made available to our partners and licensees.

• Grand opening or other initial business promotions. Again, grand openings and other business promotions are undertaken in conjunctions with our partners and licensees.  Frequently, we are asked what licensees get for their initial fees paid to 21^st Equity?  It is promotions such as these together with continuous research and development relating to our products and services offerings not to mention keeping abreast of global requirements in our sector of the economy.

• Business or operating licenses. 21^st Equity, together with our partners and licensees assists with obtaining local licensing and building code approvals.  Again, transfer of know how and technologies commences upon yourself becoming a licensee.  Hence, licensees become privy to business models, know-how and technical aspects of our 21^st Equity business with value being added to our master licensees immediately through this transfer of know-how and technologies.

• Product or service supply costs. These are costs associated with running your business.  Therefore, we will provide a detailed breakdown of all costs relating to running your business.  Keep in mind the information here is highly confidential and contain our 21^st Equity pricing and business model.  Our pricing and business model is detailed and outlines all costs associated with setup and running your business. As this point we can mention that our product supply costs are highly competitive as our business is not to sell licenses but to put entrepreneurs in construction and home building supply business, globally! Your success is our success therefore we make use of our extensive product, homes manufacturing and construction knowledge to ensure ongoing product and service supply to all our partners and licensees in their areas of operation.  Prices have been negotiated for certain materials and supplies however, we are unable to comment on local content where labour and local materials may be required to be sourced. Keep in mind, our Plaswall Factory Lines are shipped directly, fully manufactured and ready to erect to your country thereby we have control on the supply pricing structure.  However, local labour is required to manufacture the panels for the homes.  In instances where a factory is being established locally then there are local supply conditions and market forces which we need to consider.  This is done once there is a clear understanding of what your goals are within your country or area of operation.

• Training. Training fees are included in your license fee for a maximum period of 90 days.  However, extension of this training period can be given at cost price plus a small management fee. It should be noted that we have catered for a certain amount of partners and licensee training in your country.  We have received requests for training abroad.  In this instance licensees wish to visit factories in other countries, visit building projects undertaken utilizing our systems etc.  This type of exposure is not essential but some require it to broaden their firsthand knowledge - this would naturally be for the licensees own account.

• Legal fees. Initial legal fees for the legal documents to become a partners and licensee are borne by 21^st Equity.  However, local legal fees incurred for regulatory compliance and approvals being obtained would be for the licensees account.

• Financial and accounting advice. We could guide you based on our experiences.  However, all partners and licensees would appoint their own firm of accountants.  Keep in mind that a reputable auditing firm needs to be used such as Price Waterhouse Coopers (PWC) , KPMG or other international brands etc.  It is important to maintain a global standard when it comes to branding, accountability etc.

• Compliance with local ordinances, such as zoning, waste removal, and fire and other safety codes. Local licensees would attend to this aspect. 21^st Equity would assist with obtaining the local approvals from a building code and safety perspective.

What are the restrictions in operating in your local and global territory?

• The supplier of goods from whom you may purchase. It is important to note that 21^st Equity will not compromise on standards as sub-standard materials or practices impact on a global brand.  We have invested too much into our brand to have anyone cutting corners or utilizing sub-standard building materials.  Therefore, we will not dictate who you purchase raw materials from (provided you have a factory locally) otherwise 21^st Equity is the only source of purchasing panels, materials or otherwise.  What we are saying here is that one cannot obtain 21^st Equity know-how and access to business models and technologies and then not establish a factory OR not purchase from 21^st Equity and then operate under our brand but then use competitor products.

 Training for the Licensee and its Employees:

• How many employees are eligible for training? As many as you like, assuming that they can all attend the training seminar at your location at the same time to avoid further costs.

• Can new employees receive training and, if so, is there any additional cost?  Licensees would have obtained full training.  In addition, existing staff would have been trained.  Therefore, in terms of good business practice one would always ensure succession training and multi-tasking training so as to ensure that one  has a back-up plan should staff resign etc.  However, if there is a need for additional training due to new staff recruitment or expansion then yes there would be additional cost.  As you know most companies send staff on training courses and pay for the courses.  Likewise the same approach is adopted within 21^st Equity.

• How long are the training sessions?  This is based on the requirement and position for which training is required. As a rule of the thumb it is approx. one week for a partners and distributor and approx. three to four weeks for Manufacturing Partners.

• How much time is spent on technical training, business management training, and marketing? This depends on the Licensee.  Assuming that a Licensee has no business, building contracting, manufacturing or home building expertise then one naturally provides training manuals etc.  However, full on-site training on products and services are provided.  Business training and marketing training is also provided but bearing in mind that Licensees know their areas of operation and they may well wish to recruit someone within their structure to assist with running the business.  21^st Equity supports its Licensees but does not run the business of the Licensee.  It is up to the Licensee to run their own business and be responsible for its profitability.  However, 21^st Equity would not merely adopt a hands off approach as we want you to succeed.  Therefore, ongoing mentoring takes place with suggestions relating to building your business being made.  Whilst 21^st Equity provides product and know-how to a Licensee it is up to the Licensee to develop the business in their respective areas of operation/countries.  

• Who teaches the training courses and what are their qualifications? Our training courses are undertaken by various members of staff such as the CEO of 21^st Equity and, where appropriate, 21^st Equity engages the services of a suitably qualified business coach in the area of operation of the Licensee in their own language through various forms namely:

• One on one training with company CEO; and
• Training by a business coach who has been identified in the country of operation of the Licensee.  This is vital as then the business coach would have all our training manuals and further executive brief from 21^st Equity which would enable a custom course to be attended by the Licensee in their home language;
• On-site training by experienced technicians (manufacturing equipment operators with years of experience);
• On-site training by experienced manufactured homes assembly/building crew (manufactured homes assembly staff will part with essential skills and provide on-the-job training).

 

• What type of ongoing training does the company offer and at what cost? This will vary from time to time as local training and training abroad may take place. As new technologies and methodologies are introduced partners and licensees are granted this exposure and training.  Costs of travel and accommodation and training will be for the account of the Licensee.  However, there is no cost for introduction to the new technologies etc.

• Whom can you speak to if problems arise? The CEO is currently the person with whom all partners and licensees communicate.

• How many support personnel are assigned to your area? There is really not much which could go wrong from a technical point of view as the manufacturing equipment need to be serviced from time to time and spares are readily available should something go wrong from a technical viewpoint.  Other than that support is a phone call away.

• How many licensees will the support personnel service? From a 21^st Equity Corporate Head Office perspective frequent visits would take place to our global partners licensee facilities.  As the global network is expanded the need may exist to appoint Directors responsible for certain countries.  However, as it currently stands the CEO will be directly responsible for all contact with Licensees to ensure the business operations get off the ground.

• Will someone be available to come to your licensed outlet to provide more individual assistance? Yes, provided the trip is planned/scheduled.

Advertising

• Are there other expenses paid from the advertising fund? No!

• Do licenses have any control over how the advertising dollars are spent? Yes and No.  25% is for the global advertising fund and 75% is for the local advertising fund.  Licensees will allocate, in terms of the business and expense model, a percentage of turnovers to marketing.  75% of this marketing fee would be for local / country use and 25% will be payable to the 21^st Equity Corporate Head Office as various marketing efforts are embarked upon from a global perspective.

• What advertising promotions has the company already engaged in? 21st Equity has introduced itself and its home manufacturing technologies to the United Nations, the United Nations Development Program, the World Bank, the International Finance Corporation, various Governments around the world, various Departments of Trade & Industry, the Dubai Chamber of Commerce & Industry, the Red Cross, Caritas, the European Bank for Reconstruction and Development, the African Development Bank, the Asian Development Bank, the Indian Development Bank, the American Development Bank, the Bill & Melinda Gates Foundation, Habitat for Humanity International, and many other organizations and NGOs worldwide.

• What advertising developments are expected in the near future? Radio and TV Interviews including Press Campaigns to make the 21st Equity technology known worldwide and educate the public at large about the companies Community Development Trust Program, which helps to eradicate the low cost housing problems worldwide by supporting families in need with affordable homes and micro financing solutions.

• How much of the fund is spent on national advertising?  Licensees to decide themselves as they know their markets and understand where market penetration is required.

• How much of the fund is spent on advertising in your area? Licensees to decide themselves.

• How much of the fund is spent on selling more licenses? Licensees in each country can determine what percentage of their advertising budgets should go towards expanding their network of Licensees in their respective Countries.  Furthermore, 21^st Equity is not in the business of selling more licenses but rather expanding our branding and building our business.  It is up to Licensees in each country to decide how they wish to grow their businesses.  If the Licensee decides that their country expansion is to be achieved on a regional or provincial basis then it is up to the Licensee to embark on their expansion through this method after consultation with and obtaining approval of 21^st Equity Corporate Office.

• Do all licensees contribute equally to the advertising fund? Yes, as a percentage of their annual turnover.

• Do you need the licensors consent to conduct your own advertising? All advertising material is required to be endorsed by the 21^st Equity Corporate Head Office.  This could be a once off approval of a generic advert which could be used at different times. 

• Are there rebates or advertising contribution discounts if you conduct your own advertising? A percentage of turnovers is expected to be invested in marketing fees.  Hence, rebates etc. would only be applicable or received from advertising agencies or print media companies who offer discounts. However, 21^st Equity will establish its own advertising agency and offer its partners and licensees up to 20% discount on their local or international advertising costs.

• Does the licensee receive any commissions or rebates when it places advertisements? Yes, through 21^st Equity own advertising agency the Licensees will receive up to 20% discount on their local or international advertising costs. All discounts received from the Newspapers will be given directly to our license partners.

• Do licensees benefit from such commissions or rebates, or does the Licensor profit from them? All commissions and rebates received by the Licensee from print media companies or advertising agencies would go to the Master Licensee who placed the advert. 21^st Equity does not earn any money on placing adverts through its advertising agency on behalf of its licensees. We want our licensees to benefit from these connections.

5 or 25,000 Homes per Year?

Whether you build only 5 homes or 25,000 homes a year, 21st Equity Homes has a manufacturing solution that will meet your needs. For example, you can get started with the Plaswall Mobile Plant for only $500,000 including all Franchise Fees.

There are additional costs that have not been factored in that must be considered, such as where the components would be manufactured (building whether it is leased or owned) and the management required to direct the manufacturing workers, operating overheads such as electricity, water, etc.

To discover if you qualify for a master franchise within your territory, please contact us.