Master franchise

Create your own network of butterfly houses in your own country!

Allow us to offer you the chance to cooperate based on an exclusive licence applicable for the territory of an entire country. Become a master franchisee of these butterfly houses that are unique worldwide.

What we require

  1. An active approach to searching for and recruiting potential investors and when promoting the Papilonia brand and franchise concept.
  2. Detailed knowledge of the project materials provided to you, their elaboration and translation into your national language for their further application.
  3. Dedicate sufficient time to interested parties, provide them with the relevant information, and participate in personal meetings if the investor shows interest in them.
  4. After recruiting a sub-franchisee, fulfil the role of controlling, consulting, and supervising them; be ready for close cooperation with the franchisor when realising a “customised” sub-franchise project.

Initial investments

The price of a master franchise licence for a given country: 2 000 000 CZK.

  • The licence of the Papilonia master franchise is always granted exclusively and is valid for a specific country unit. The price is uniform, no matter the size of the licensed territory or of its population.

Profits of the master franchisee and their division with the franchisor

Your profits begin with the recruitment of your first national franchise, whereby your profits stemming from sub-franchisees can be divided into two categories:

  1. The lump-sum initial fee from the sub-franchisee - for details see Table No. 2
  2. The continuous extra revenues for each butterfly cocoon provided to the sub-franchise operations
    (on average, a Papilonia Butterfly House will be supplied 350 cocoons per week)

The profits will then be further divided between you and the franchisor according to the so-called master franchisee level, which is directly determined by the number of active national franchises (sub-franchises) within your licensed territory.

Division of Profits (Table No. 1)

Level
of master franchisee
Number
of sub-franchises
Division of initial fees from sub-franchisees

franchisor (FR) vs. master franchisee (MF)
Division of continuous revenues (remuneration for cocoons) from sub-franchisees

franchisor (FR) vs. master franchisee (MF)
Partner 0 - -
Start 1 FR: 80% / MF: 20% FR: 80% / MF: 20%
Advanced 2 First sub-franchise
FR: 80% / MF: 20%

Second sub-franchise
FR: 70% / MF: 30%
For both sub-franchises
FR: 70% / MF: 30%
Expert 3 and more

First sub-franchise
FR: 80% / MF: 20%

Second sub-franchise
FR: 70% / MF: 30%

Third and every subsequent sub-franchise:
FR: 50% / MF: 50%

For all sub-franchises
FR: 50% / MF: 50%

Initial and continuous fees on part of sub-franchisees that will be divided between you and the franchisor (Table No. 2)

Form of cooperation
as selected by the sub-franchisee
Lump-sum initial fee
from the sub-franchisee

Continuous fee
from the sub-franchisee (remuneration for every delivered cocoon)

Standard
The sub-franchisee builds their own premises based on the provided know-how
1 000 000 CZK 25 CZK
Exclusive
The premises of the sub-franchisee will be “custom made”
2 000 000 CZK 25 CZK

Model example of division of profits (Table No. 3)

Level
of the master franchisee number of sub-franchises
Franchisor
initial fees (lump-sum)
Master franchisee
initial fees (lump-sum)
Franchisor
remuneration for cocoons (annually)
Master franchisee
remuneration for cocoons (annually)
Start
sub-franchises: 1
2 800 000 CZK 200 000 CZK 364 000 CZK 91 000 CZK
Advanced
sub-franchises: 2
3 500 000 CZK 500 000 CZK 637 000 CZK 273 000 CZK
Expert
sub-franchises: 3
4 000 000 CZK 1 000 000 CZK 682 500 CZK 682 500 CZK
Expert
sub-franchises: 5
5 000 000 CZK 2 000 000 CZK 1 137 500 CZK 1 137 500 CZK

Benefits for the master franchisee with their own operations

If you should choose as a master franchisee to construct and commercially operate your own Papilonia Butterfly House, you can markedly contribute to developing the project successfully:

  • A referential Papilonia Butterfly House will exist, allowing parties interested in creating a sub-franchise to be familiarised in detail with the project directly in the country of their interest.
  • Your commercially successful operations will increase interest in and the number of investors that will join the project within the licensed territory.
  • Through your personal experience, you will discover the details of the realisation and the operation of a Papilonia Butterfly House, whereby your experience can be used when negotiating with interested parties and furthermore in the administration and control of sub-franchises.

Bonuses for master franchisee with their own operations

  • You do not pay the initial fees that the third parties interested in realising a sub-franchise are obligated to pay for your own premises (see Table No. 2).
  • The butterfly houses you construct and operate are considered to be realised sub-franchises, which automatically puts you on a higher level of master franchisee with all associated advantages (see Table No. 1).

The validity of the master franchise license and the protection of your investments

The period of your license validity and the conditions for protecting your investments in the master franchise license are directly correlated to your so-called master franchisee level, i.e., to the number of active national franchises within the licensed territory.

Validity of License and Protection of Investments of Master Franchisee (Table No. 4)

Level
of master franchisee
Number
of active sub-franchises
Validity
of the master franchise license

Protection
of initial investments of the master franchisee, option of terminating cooperation

Partner 0 3 years

When remaining on the master franchisee level of “Partner” for the period of three years:

  • Option of one-sided termination of cooperation on part of the franchisor without refund of initial investment

  • Option of paid prolongation of license validity upon mutual interest of both parts and based on mutual agreement

Start 1 Unlimited with options

When remaining on the master franchisee level of “Start” for the period of three years:

  • Option of terminating the contract on part of the franchisor under the condition of refunding the license fee to the master franchisee in full minus the commission for the initial fee that the master franchisee obtained for recruiting the sub-franchisee

  • Option of prolongation of license validity free of charge based on the mutual interest of both parties

Advanced 2 Unlimited

Option of terminating cooperation based on the mutual agreement of both parties, i.e., solely under the conditions agreed to by the master franchisee

Expert 3 and more Unlimited

Option of terminating cooperation based on the mutual agreement of both parties, i.e., solely under the conditions agreed to by the master franchisee

Notes to Table No. 4: In case of terminating the master franchise license on the level of "Start”, in which the master franchisee remained for the period of three years solely based on their own operations, the franchisor is not obligated to refund the initial fee for the master franchise license since it was applied and is now considered as the initial fee for the direct sub-franchise. The premises themselves will continue to be in operation and held by the former owner of the master franchise license, but the contractual relationship will now be adjusted to the conditions without the master franchise benefits.