The Revest system provides a flexible and powerful architecture to support companies operating under a franchise model (Franchise). This enables the franchisor company (Franchisor) to manage its fully-owned branches alongside the branches of franchisees (Franchisees) under a single umbrella, while maintaining data centralization and precise control over pricing and promotional offers. This guide explains how to establish the franchise structure and manage the flow of operational data between the granting company and its affiliated entities.

First: Establishing the Franchise Structure (Franchise Structure)

The franchise structure is built through the central control panel (Back Office) within the General Setups section across the following operational levels:

  1. Company Level (Company): When creating the company, the "Company Type" must be specified as a franchise (Franchise). This option allows the company to manage its fully-owned showrooms alongside showrooms belonging to different franchisees.
  2. Legal Entity Level (Legal Entity): The legal entity is used to separate franchisees financially and tax-wise. In the Revest system, the legal structure of a franchise company consists of:
    1. A default legal entity for the franchisor company: Registered as "Owned" to represent the parent company.
    2. Legal entities for the franchisees: An independent legal entity is created for each franchisee, and the type of entity is specified as "Franchise".
    3. Note: Franchise-affiliated legal entities can exist in different countries, and each can have its own independent base currency and tax settings (such as the vendor tax registration number).
  3. Store Level (Store): When setting up franchise showrooms, the showroom is linked to the specific legal entity belonging to the corresponding franchisee. Also available within the showroom settings is an option to activate the FRANCHISE tag to apply distinct operational policies to this showroom.

Second: Centralization of Data Flow (Data Flow & Management)

To ensure the standardization of brand guidelines, the Revest system relies on the centralized management of master data (Master Data) at the "Company" level to flow downward to all franchise branches:

1. Products Management (Products):

  • The core catalog of products is created and managed exclusively by the parent company (franchisor), and these products flow down automatically to appear in the franchise showrooms.
  • If a franchisee (the legal entity) wishes to add new products, they must submit a "request" for their addition, and the parent company alone holds the authority to create them in the system.
  • The parent company can restrict the visibility of certain products, limiting them to specific legal entities or franchise showrooms over others.

2. Customers Management (Customers):

  • The customer database is maintained centrally at the company level.
  • When any franchise showroom (Franchise Store) creates a profile for a new customer, this data is updated and uploaded automatically to the central company database. This ensures a comprehensive, unified view of the customer across all branches of the brand.

Third: Control over Pricing and Promotional Offers

The system guarantees the franchisor's ability to control pricing and marketing strategies while offering the flexibility to customize them according to individual franchisees:

1. Price Lists (Price Lists):

  • Central price lists are created exclusively at the company level.
  • Different price lists can be created and allocated to specific franchise entities. Additionally, a single price list can be assigned to multiple legal entities or franchise showrooms as long as they share the same currency.
  • The price list is linked directly to the legal entity and flows by default to all showrooms associated with that entity to determine local retail prices.

2. Promotional Offers (Promotions):

  • Promotional offers are created and controlled by the central company only.
  • Flexibility in Customization: The company can create general promotional offers for all branches, or customize a promotional offer to be applied to a specific legal entity (franchise), or even to a franchise showroom itself.
  • For franchise companies expanding into multiple countries, the system allows the creation of customized promotional offers based on the "currency" used in that country (such as special offers in UAE Dirhams and separate offers in Saudi Riyals).
  • The company can duplicate and modify offers to suit the specific requirements of each market or franchise partner.