STC offers better franchise terms |27 December 2013

As of next year, the Seychelles Trading Company (STC) will be offering better conditions to its franchises around the country.
 
This was announced by the company’s chief executive Veronique Laporte during a meeting with the franchise owners at the STC conference room yesterday afternoon.

Also present at the meeting were the chairman of the STC board Charlie Morin, board members as well as representatives of the Seychelles Retailers’ Association.

The STC franchise outlets benefit from credit facilities and in some cases discounts from the STC.

The company also helps in the marketing of merchandises through publicity, promotions and product presentation or physical evidence as it is called in the marketing jargon.

It also offers training on the handling and sale of new products.

The STC said it feels that the agreement it presently has with the franchisers is outdated and does not necessarily reply to the country’s laws. For example, the partnership does not meet all the principles of franchising as established by the Fair Trading Commission.

Among the new conditions designed by the STC, the franchises will benefit from a ‘distributorship agreement’ which according to the wholesaler will permit retailers to be able to continuously purchase goods from the STC. The new agreement will be a personalised and non-transferable engagement which will be agreed upon by mutual consent of the two parties.

The new contract will also prevent the STC from being an exclusive distributor. This means that the franchisers will now be able to outsource commodities from other overseas suppliers or other local importers or wholesalers. On the other hand, the company has promised the availability and distribution of new products in the future.

More importantly, under the new agreement the STC will not fix any price. So the distributors will be free to decide at what rate they will retail goods bought from the STC.

However, in line with its policy to make the public benefit from fair pricing, the STC will advise its distributors on adequate pricing, especially for the essential basic commodities.

Following complaints from merchants, the STC has also promised to establish a centralised payment system whereby even if its customers buy from different distribution points, they will be able to pay all their merchandises with one single cashier.

At the same time, the STC has informed retailers that its free delivery service will now depend on the volume of their order.

As of next year, an STC community outlet will no longer be referred to as an ‘STC Franchise’, but it will be called an ‘STC Distributor’.