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Terms for Franchise
EXECUTIVE SUMMARY

THE FRANCHISE
1. The Brand of Global Hanyu, a leading global provider of Hanyu education.
2. Global Hanyu is a member of the Confucius Institute Network of the Chinese government.
3. Global Hanyu is a member of The GEM Group (www.get-ed.com) in China, which enables all member franchisees to offer study in China programs (including summer camps).
   
TERMS
1. Each franchise if offered is for a period of 5 + 5 automatic renewal.
2. Early termination for non performance.
3. One-time franchise fees is not refundable. Payable upon signing of the Franchise.
4. Loyalty on gross fees to be worked out according to business plan; not more than 10%, payable quarterly.
   
RESPOSIBILITIES

GLOBAL HANYU
1. To license the use of the brand, and all its associated IP related to the setting up of language programs and training centers.
2. With the licensing, all the programs, management and administration know-how in the provision of Hanyu education.
3. Academic development and consultancy related to the local market.
4. Make available the right to use the China Campus facility.
5. Support the recruitment, training and certification of trainers, teachers and academic directors.
6. Comprehensive training, center management advice and ongoing professional development through seminars, workshops and conferences.
   
THE FRANCHISE
1. Provide investment and operating capital.
2. Responsible for local management and business development.
3. Responsible for growing the franchise nationwide.
   
EVALUATION OF MARKET POTENTIAL
The following date is important to determine the viability and feasibility of a center operation:

Ideal population catchments:
1. In a pro-China friendly geographical location where the community is benefiting from China trade.
2. Populated with a young population, ideally with a substantial proportion comprises overseas Chinese.
3. Fairly affluent neighbourhood with many private schools.
4. Government supports the learning of Mandarin, ideally some incentives.
5. The ideal franchisee must have well-established roots in the community.
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