Business Model & Profit Structure
Core Logic of Franchising ("Four Elements + Three Standardizations + Three Full-Coverages")
Four Key Elements
- Brand Licensing
- System Output (Formula + Equipment + Processes)
- Ongoing Support (Training + Technical Upgrades)
- Contract Protection (Territory Exclusivity + IP Rights)
Three Standardizations
- Standardization
- Professionalization
- Simplification
Three Full-Coverages
- Comprehensive Coverage
- End-to-End Monitoring
- Full Staff Participation
Eight Revenue Channels for Franchisees
| Revenue Channel | Proportion | Description |
| Product Sales | 60%-75% | Local production + brand premium = high gross margin |
| Value-Added Services | 10%-15% | Color customization, project applications, consulting, etc. |
| Channel Distribution | 5%-10% | Develop secondary agents in the region |
| Subsidies & Incentives | Varies by region | Government subsidies for green manufacturing, tax incentives |
| Brand-driven Projects | Long-term gains | Mahacina’s brand enhances tender success rate for large-scale projects |
| Technology Premium | 5%-10% | Constant formula upgrades increase per-unit profit |
| Custom Projects | Project-based | Functional, waterproof, anti-corrosion coating development revenue |
| Asset Appreciation | Long-term gains | Factory valuation growth leads to capital returns |
Investment Return Model (Example: 30 Tons/Day Factory)
| Item | Value | Description |
| Total Investment | $200,000 – $300,000 | Covers equipment, facility, and initial raw materials |
| Payback Period | 12-18 months | High margins + rapid production ramp-up |
| Net Profit Margin | 35%-50% | Significantly above industry average |
Twice as fast payback compared to self-built factories, and 2–3 times higher profit margins than import-based sales.
