GS Holdings’ indirect wholly-owned subsidiary, Sing Zhong Brands Management, is entering into a non-binding memorandum of understanding (MOU) with Long Chao Shenzhen, to develop new franchisees for the F&B brands that are owned by Sing Zhong and Long Chao.
This MOU aims to promote, through the F&B concepts, an exchange of cultural understanding across borders, and to enable prospective franchisees to grow their business portfolios in overseas markets mainly Singapore, China and other Asian countries with the support of the franchising programs created and operated by Sing Zhong.
Pursuant to the MOU, Sing Zhong is responsible for creating and developing 10 PRC-influenced F&B brands, and 10 Singapore-influenced F&B brands; engaging a third-party consultant, Action Culture, for its expertise in the conceptualisation, branding, and marketing of the F&B brands; marketing and selling of franchise of selected F&B brands owned by Long Chao Shenzhen to its existing and new clientele (franchisees) in the territories of the Asian countries; and paying Long Chao Shenzhen service fees of 50% based on gross initial franchise fees generated and received from the franchise sales of brands owned by Long Chao Shenzhen to its existing and new clientele.
On the other hand, Long Chao Shenzhen will be responsible for marketing and selling of franchise of selected F&B brands owned by Sing Zhong to its existing and new clientele; and paying Sing Zhong a service fees of 50% based on gross initial franchise fees generated and collected from the franchise sales of brands owned by Sing Zhong to its existing and new clientele.
The duo have agreed that throughout the course of sales of franchises from this joint effort, any subsequent royalty fees, sales of products, design, fees, and training fees that are charged to franchisees shall be received by the party providing the relevant services or products.
Shares in GS Holdings closed at 22 cents on Jan 28.
