FRANCHISE EMPORIUM MAGAZINE, The Global Issue, Autumn 2009

FRANCHISE}BIG STORΥ

s o l u o p o h c Va s s i li s Tr i s a l l e H s r e d w e b wo n

h t i w n o E xt e n s i n o i t a i d a r l a n o i t a n r e t n i Mr. Vassilis Trichopoulos at just a few steps from the entrance of the New Acropolis Museum relates to Ms. Sonia Papageorgiou the background of a much discussed concept that has gained international acclaim.

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onia Papageorgiou: At first, I would like you to tell me how you feel that this interview is taking place outside the New Museum.

Vassilis Trichopoulos: I feel particularly nice. Obviously, this point here plays a particular part as it gives out an incredible energy, although in any case July nights in Athens have a unique splendor.

S.P.: Tell me, what was your first impression of the new architectural ornament of our city?

V.T.: As I was approaching Dionysiou Areopagitou street, the New Museum took my breath away. Although the principal value of the museum is found in its interior, the combination of its imposing volume and its austere symmetry and design will without doubt give Athens an international splendor and place it amongst the metropolises of the world.

S.P.: Since you mentioned international splendor, how did the webwonders manage to gain so much splendor so soon?

V.T.: I believe that many things in life are merely a matter of circumstances and luck. Two factors that drive bold people who greatly believe and have confidence in their power. As I have confessed to you in the past, since the beginning of this attempt I was greatly concerned about the enormous operating expenses of the educational centers. We had been researching the market for over two years to be able to find a solution to the dependence of these businesses on the variable payrolls of teaching staff and to the uncertainty involved in setting up profitable courses. Finally, the fact that we managed a 60% cut-down in operating expenses, besides being an ability, is also certainly a matter of luck and favorable circumstances.

It is a matter of luck because - just when the time was right - I met in Thessaloniki my partners from BRAIN.net, with whom we envisioned and created today’s product and circumstances, because the market was mature enough to accept the great change brought with distance learning and the flexible hours it offers. Almost the same happened abroad. As you know I grew up in Saudi Arabia. After last year’s ΚΕΜ Franchise Exhibition in Thessaloniki, a Greek lady, representing a large Saudi investment fund, impressed by the innovation of the product and the flexibility of hours it offers, approached us and suggested that we contacted them initially for a presentation. It is there where luck and circumstance stop and entrepreneurship starts. Of course, this came after our decision to make a first attempt to expand outside Greece since last year’s World

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ry and its t n u o c ” d e s ia is a “clo «Saudi Arab by building e t a r e p o o c n rarely businessme lationships.» e r l a u t c a r just cont Franchise Exhibition in Athens where we met and talked with our current partners in Kuwait.

Everybody knows what followed. Next came our participation in international exhibitions, in Dubai in March and in Riyadh in May, where we made many and good contacts in the Middle East which we believe will gradually turn into invaluable partnerships. Among the results of these actions stand the first webwonders to this date in Kuwait which will start operating in mid September, the great possibility for exclusive penetration in Saudi Arabia and a threemonth trial implementation of the English version of the main skills platform in New York, by the company of an American Lebanese businessman we met in Dubai.

S.P.: In a recent press release of yours I read that you are currently trying to wrap up a number of legal lose ends in order to make your final step in Saudi Arabia. What is the difference between this case and a usual master franchise relationship?

V.T.: A usual master franchise relationship is built for instance in Europe or the US. Saudi Arabia is a “closed” country and its businessmen rarely cooperate by building just contractual relationships. They require warranties by the participation of the Franchisor in the scheme. A Joint Venture would be a solution. Further, I’m convinced that its selection whether individually or combined - is feasible, both because we gain a larger penetration in the local market and the provided online educational support may be provided by a local teacher desk, at a lower cost. That, in conjunction with the more favorable funding and tax exemptions offered by the government there in order to attract investments, makes a JV particularly attractive solution. The combination of the Master Franchise and the JV is a completely separate case which whilst leading to lower returns on investment ensures better control by providing us with more security in the unknown environment of the Middle East. As I have said before, we have a particularly difficult business and legal algorithm which we are called upon as a company to implement by the end of the summer.

ational c u d e ir e h t portance on im r la , as well y u g ic lo t o r n a h p c e e c t arding high «Saudis pla g e r s e u s is o women» n o t y t ll e k ia r c a e m p s b system, e manding jo e d e h t f o ening as on the op S.P.: All this sounds very interesting. From what you are saying I gather that Saudi Arabia does not limit itself any more to oil production.

V.T.: This is a big truth. In the “Kingdom”, as Saudi Arabia is called in the Middle East, four new metropolitan centers will be built literally on the sand in the coming years, the ulterior goal being to create over one million jobs until the year 2020 and turn the country into a large industrial power. It is the goal of King Abdullah to attract foreign investments. However, in my recent visit in May after having been away for 23 years, I noticed intense changes, mainly at the social and financial levels. Saudis are attempting a financial turn strategically trying to move beyond their oil production dependence and place their economy on a high speed development course through new activities. They place particular importance on their educational system, especially on issues regarding high technology, as well as on the opening of the demanding job market to women. Their population has increased three-fold since 1975 and currently stands close to 25 million. At the same time, almost one half of the population of Saudi Arabia is aged less than 25 years old. As the population is facing a geometric growth their access to the wealth of the country needs to improve. In our study, which we conducted before participating in exhibitions there, we were surprised to find out that in 2008 the per capita GDP in Saudi Arabia stood at just US$ 19,000, as compared to US$ 47,000 in the US and US$ 103,000 in Qatar. The model for the King Abdullah Economy City, the foundations of which were placed at 720 Km. north of Riyadh, shown to us in video by our prospect partners of the investment fund, includes skyscrapers, research centers and modern schools. It then becomes clear from the above that women and young people are a huge target group as regards the educational cooperation we are preparing in the virgin market of the Gulf where the concept of retail educational services does not exist.

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we have y n a p m o c ly «...the on peting” m o “c n e e b really ears has y e s e h t ll a against mpany». b e e n o u r co S.P.: I notice a great passion in this effort of yours to expand abroad. But what do you think of the competition here in Greece?

V.T.: It can be seen on a daily basis that the international financial crisis has affected everybody in all sectors. This situation has defined and distinguished strong from weak players. I never dealt personally with the competitors. Not because I think little of them, but rather because the only company we have really been “competing” against all these years has been our company. What mainly concerns me and my partners is how we can work more productively to create over time unique products that match today’s way of life and meet the current needs of our customers.

S.P.: Are you working on something new in Greece? It has been going around that there is a plan to further increase your partners.

V.T.: From the beginning of the year to this day we have signed five new exclusive rights agreements. Recently, we announced at the Infrapedia Exhibition at Zappion, the beginning of the sale of our products under licensing in non-exclusively committed areas in Greece to existing small or large educational entities. It is a proposal that further enables the product to “open up” and become geometrically known and accessible to the wide business and consumer public. This had been on my mind for quite some time. Now I decided that the time is right to also include licensing in our growth strategy.

h o p o u lo s Va s s il is Tr ic s H e lla s w e b wo n de r

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