All franchises will be subject to joining fees and a fixed fee per student will be negotiated.

Licensing and upfront fees, · Design and renovation costs, · Rental and leases of premises and / or equipment,
Equipment purchasing costs, · Installation of equipment, testing and commissioning costs, · Training costs,
Marketing, advertising and promotion costs, · Staff and recruitment costs, · Deposits, · Printing costs, · Legal fees,
Heating and cooling system costs, · Running cost for first 12 months of operations and more.

Initial Contract term is 3 (three) years with relevant renewal clauses, Licensing fee will be agreed to and is to be paid on time of signing. The licensing fee is a one-time, non-refundable commitment fee. Typical Royalty (known as ‘certification fee’) is a flat fee per student enrollement. (As income is generated from student program fees this is a percentage of each student’s full course fee). Certification Fees are transferred directly by the student upon enrollment. An upfront certification fee payment will be collected in advance at the time of commencement of the 1st intake. However all subsequent collections will be adjusted from this amount. All staff to be jointly recruited and appointed. All key staff to be trained at selected SAE Locations. For the first 2 years of operation SAE Quality Assurance personnel will visit each franchise centre at the end of every 3 (three) months, for the purpose of inspection, audit, retraining and performance monitoring. Each inspection will be for a period of 5 days. (All costs related to the travel and accommodation will be borne by the franchisee).

• If we are satisfied with the performance and progress of the franchise these visits will be done every 6 months after the end of the 2nd (second) year.



• The franchisee will pay a QA fee during the time of each inspection and audit being for the services rendered by the SAE QA personnel.



• All facilities are to be built and designed in accordance to SAE standards and specifications.



• All equipment to be purchased and setup in accordance to SAE guidelines and specifications. (Arrangement can be made to purchase all equipment except computers through SAE at a turnkey price). A similar arrangement can be made to get the SAE technical team to handle all system installation and wiring.



• All marketing, advertising and promotional material and artwork to be done according to SAE specifications. All artwork must be approved prior to being made public.



• All government approvals to establish and run an educational institution within the given territory must be obtained by the franchisee.



• All Quality Assurance reports (templates to be provided by SAE) and financial statements to be submitted to SAE on a monthly basis.



• SAE facilities are to be used ONLY for educational purposes and NOT for commercial work.
  (All the above are part of the franchising agreement.)