Partnering opportunity

Ukrainian manufacturer of painted furniture facades and baby furniture is looking for cooperation under financial agreement and for distributors

Summary

Production is located in the West part of Ukraine in Ivano-Frankivsk city. Investment is required for the manufacture of a small batch of production equipment for furniture facade painting, namely, polishing machines and CNC painting machines (software control). The company wants to act as a franchisor and is also looking for cooperation under a financial agreement and for distributors.

Partner sought

The company wants to act as a franchisor and is also looking for cooperation under a financial agreement and distributor. The potential distributor has to work with small retailers such as kids and furniture stores. Franchisee company must have qualified staff, commercial building and means for starting. Under financial agreement an investor has to be ready to invest money in the amount from 150 thousand euros to 400 thousand euros. The project is not easy, so further details are already in negotiations with stakeholders.

Description

The company produces serial children's furniture and sells products through dealers in Ukraine. The enterprise was founded in 1990. Each collection is a unique design solution and has a special story. The company creates the furniture for the children of different ages, with different preferences, tastes, hobbies.The firm independently produces painted furniture facades for its own production and It has huge experience in this activity. That is why the enterprise has decided to act as the franchisor. In 2019, the company's revenue was € 230,000. The firm can independently produce equipment for painting areas, namely, polishing and painting machines CNC (software control). Polishing machine (a prototype) manufactured and successfully works on its own.This equipment will be sold to those entrepreneurs who sign a franchise agreement with the company. The customer buys and receives the equipment, training, technical support, central purchasing of materials, advice, estimates and assistance in the launch of the office. This program is designed for not large production, working with private contracts, since such equipment provides the ability to quickly re-tune to a wider color gamut, which is very important for different orders. One office with 3 employees per month can produce from 200 m2 to 400 m2 of finished products. The selling price of 1m2 of furniture facade painted is amount to 55 euros. The profitability is approximately 40% (from 4400 Euro to 8,800 Euro per month). The payback for the company of all expenses is up to one year. The launch of a branch requires approximately 40 thousand euros. During one year it is possible to launch 10 branches. Reimbursement is planned for one year for each branch from the beginning of its launch. The investment amount is from 150 thousand euros to 400 thousand euros. The company interest in the franchise is for example 8% of the transaction ( an average of 6000 euros a year). Due to the desire to expand firm's production and need for financial infusions, the company is looking for investors under financial agreement. For the purpose of spreading out the entreprise's sales activity the company wants cooperate with distributor. The potential distributor has to work with not large retailers who are supplying products to kids oriented store units.

Advantages and innovations

The company has been on the market for 29 years. The firm consists from skilled professionals with very high quality products and great design. The project 's advantages are the next: inclusive equipment, obtainable price for it, the security of the program for CNC (software control), extensive experience in this field. The equipment is designed for small enterprises that need ffurniture acades with a wide variety of colors.

Development stage

Already on the market

Intellectual Property Rights (IPR)

Not available


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