The pricing provided by Sintel Systems (“We”) maybe subsidized by Sintel Systems to provide each customer with franchise growth oriented pricing (FGOP) and the following questions & answers better explain this and are hereby incorporated into the purchase agreement. This section only applies if FGOP pricing is provided on the purchase order.
What is a subsidy?
A subsidy is in many ways similar to a discount, but it is intended to provide assistance to the recipient. In this case, the Support Plan subsidy is provided to allow business owner to utilize the subsidized amount in other aspects of business and grow.What is franchise growth oriented pricing (FGOP)?
It is a pricing strategy created and subsidized by Sintel Systems to allow small businesses to grow into franchise operations. The difference between the market price and FGOP is offered to the business to utilize for growth.What is the market value of the support & service plan provided by Sintel Systems?
$1,500 annually for the first terminal and $1,500 for any additional terminals within the same location. This rate is reflective of all services provided under the Support Plan and is in many instances lower than our competitors.How much FGOP for the first terminal?
Sintel Systems will subsidize the technical support plan from $1,500 for 12 months and subsidize the price to $795 (a $705) value thereby affording the business owner an additional $705 for other purposes.How much FGOP for additional terminal(s)? Sintel Systems will subsidize the technical support plan for additional terminals at the same location from $1,500 for 12 months and subsidize the price to $400 (a $1,100) value thereby affording the business owner an additional $1,100 for other purposes.
How much is the average subsidy as a result of FGOP?
The average franchise oriented business will acquire two terminals and the subsidy offered by Sintel Systems is a sizable $1,895 for the owner of the business to use for other efforts such as marketing to encourage growth.Why does Sintel Systems offer FGOP?
Sintel Systems succeeds when its customers succeed. We want do all we can to help our customers succeed and establish a mutually beneficial relationship. We are there for our customers when they are at their infancy and if they succeed in expansion beyond one store into multi-store operations, franchises or licensee operations, so by accepting to purchase a POS system with FGOP pricing they are committed to staying with Sintel Systems through the life of the operation for all their POS needs including technical support, single store gift card processing, Multi-Location Gift Card Processing (MLGCP), obtain gift cards from us, maintaining the support plan for every locations, and maintain merchant account services through Sintel Systems and a merchant account provider selected by Sintel Systems.Can FGOP vary based on the customer?
Yes. Sintel Systems reserves the right to discontinue FGOP at any time for any reason. Common reasons FGOP may be discontinued for an existing customer include by reaching a franchise size that 1) place a large administrative and technical support demand on Sintel Systems or 2) the customer is large enough to sustain growth with the need for FGOP. This number of stores typically required to cease the benefits of FGOP is ten (10) total stores under one owner or in one franchise or chain of operations. There is no definite number or condition that should be inferred from this and it is up to the discretion of Sintel Systems to determine this. Customers and/or franchise chains who decide to discontinue the FGOP program for existing or future stores will be required to reimburse Sintel Systems for all subsidies received since inception. In case of licensees and franchisees, both the licensor (or franchisor) and licensee (or franchisee) will be liable for reimbursement of subsidies received from Sintel Systems.How is a franchise defined under FGOP?
A franchise is defined as customer (or customers in case of partnerships, corporations, limited liability companies, etc.) who opens or operate more locations for the same product and /or service either by opening the store themselves under their name, as a franchise, or through licensee agreements.
The following examples offer some, but not all possible, circumstances defining a franchise.Example 1: John opens up Best Frozen Yogurt and obtain POS from Sintel Systems under FGOP. Two years later, John opens up his second location in the next town. Under FGOP, he is obligated to come to Sintel Systems for POS system or forfeit his FGOP pricing by reimbursing Sintel Systems for the price difference from the commencement of operations at his first store. John is defined as the franchise.
Example 2: John opens up Best Frozen Yogurt and obtain POS from Sintel Systems under FGOP. Two years later, John allows Bob, under some agreement (franchise, licenses, etc.) or no agreement, to open up Best Frozen Yogurt. John must inform Bob that Bob must obtain his POS from Sintel Systems, or Bob needs to forfeit his FGOP pricing by reimbursing Sintel Systems for the price difference from the commencement of operations at his first store. John is defined as the franchise.
Example 3: John opens up Best Frozen Yogurt under some agreement (franchise, licenses, etc.) or no agreement from Frozen Yogurt Corp which does requires its franchises or to obtain a POS systems. John obtain POS from Sintel Systems under FGOP. Two years later, John opens up his second location in the next town. Under FGOP, he is obligated to come to Sintel Systems for POS system or forfeit his FGOP pricing by reimbursing Sintel Systems for the price difference from the commencement of operations at his first store. John is defined as the franchise.
Example 4: John only obtains POS for his second location from Sintel Systems under FGOP pricing. His first store does not have POS systems from Sintel Systems and is not subject to these terms. Two years later, John opens up his third and fourth locations. Under FGOP, he is obligated to come to Sintel Systems for POS system or forfeit his FGOP pricing by reimbursing Sintel Systems for the price difference from the commencement of operations at his second store. John starting with his second location is defined as the franchise.
What if the customer does not want FGOP?Any customer is free to choose to opt out of FGOP; however, great flexibility is provided with that as well. The customer can take advantage of FGOP when they open their first location. In the rare instance the customer decides that they do not want Sintel Systems as the POS provider, then simply reimburse us for the subsidy ($705 for first terminal and $1,100 for each additional terminal). That simple.
Does FGOP pricing apply to any other part of a point-of-sale (POS) services or goods?
Yes. FGOP pricing may apply to other parts of the POS system including subsidized hardware or POS supplies such as gift cards. While not definite, the most common area of FGOP is found in Franchise-Wide-Support (FWS) or Professional POS Franchise Remote Access (PPFRA) provided to franchises or chains of operations. FWS is subsidized from $795 to $500 (a $295 value) and PPFRA is subsidized from $795 to $295 ($500 value).