4.1. Who may become a KOMANDOR Authorized Dealer?
This area of activity has been designed for the purpose of building a typical family business. An AD should be a person who is capable of getting his or her family involved in the performance of any and all actions connected with or relating to the running of a KOMANDOR agency.
The best candidates for this purpose are persons who have gained a working expertise of the sector and are aware of various issues that may create difficulty in the administration and management of various services. For instance, finding competent installers who know how to install completed units (or, any other persons having to do with carpentry services), persons employed at showrooms, etc.
The ideal AD candidate is a person with ambition who strives for success in his or her professional as well as family life. The candidate must also possess good manners with a courteous and professional approach to business dealings.

Who can become a KOMANDOR Authorized Dealer?
ANYONE WHO DESIRES TO DIRECT HIS OR HER, PROFESSIONAL OR PERSONAL LIFE, IN THEIR OWN SUCCESSFUL PRIVATE ENTERPRISE.

4.2. Legal format
The most effective way to pursue AD activity is to register as a corporation or a Limited company or Incorporate, allowing you to claim receipts/expenditure records. Also, a tax number (GST/PST) should be obtained, in view of streamlining your taxation procedures. However, any other form of conducting business activity is possible as well, such as a private business or contractor.

4.3. Organizational structure

4.4. Where to conduct your business?
Activities performed by AD's are limited to servicing a single showroom or Kiosk.
The showroom should be situated at a location ideally suited for sales, preferably not far from the AD's residence. Yet AD's may be active in the whole country for canvassing orders.
Limits on area of operations is determined by the requirements that the AD offers excellent quality service. In other words, AD's must gain clients by means of quality service instead of by the quantity of exhibit kiosks or locations.

4.5. Terms and conditions for operation.
The following tools or instruments are required by the AD's to perform his or her operations:

4.5.1. Exhibitor's Kiosk (showroom)
This represents the AD location where customer service is performed. Designed for this purpose and specially marked, it must to be in line with the company book of standards, equipped with a stationary computer, a colour printer and 'KOMANDOR Fabricator' software.

4.5.2. AD equipment
The basic AD equipment will consist of:

• a notebook computer with a printer;
• the 'KOMANDOR Fabricator' software program;
• KOMANDOR sample kit;
• mobile telephone.

4.5.3. AD means of transport: Delivery Van
In accordance with the AD Agreement and with the Rules and Regulations of AD Operation, an AD that signs up becomes obliged to use a specific type of canvas covered flat-bed vehicle. The cargo bed is 324 cm long, the required minimum inner length equalling 295 cm (resulting from the length of the transport pallet = 280 cm). The driver's cab and the canvas cover should be yellow. The basic requirement for this vehicle is accessibility for side loading. This requires the cover to open on both sides to allow complete access for the full length and width of the cargo bed. Loops for lacing the hood must be on side supporting studs.
The rear part of the collapsible cover shall open as well. The cargo area must not have walls except in 2 places - one against the rear of the cab and the other at the rear of the cargo bed. The minimum height of the frame that supports the canvas = 180 cm. In the cargo bottom, there should be inserted along the cargo's width, two channel bars (made of a 2-mm-wide metal C-channel). At both ends of these grooves, two iron bars made of reinforced steel (diameter: 12mm) should be welded to allow for the tightening of transportation belts and securing of transport pallets. This will prevent cargo from sliding out of the cargo bay.

The van used by the AD must be marked in a visible and tasteful manner, according to the book of standards (i.e. the logo, fonts used, etc.), as pictured.

The following areas should be covered with company logos:

• canvas cover along both sides;
• rear hood flap;
• the vehicle's front;
• the cab's side doors.

The van must be equipped with at least two transportation belts (for securing loads).
The driver of an AD company vehicle must be dressed in a two-piece blue uniform, bearing the company logo, as described in the Komandor Group's Book of Standards.
The driver should have a mobile phone with him at all times.
The basic tasks for the driver include delivery of the product to the installation crews at the address indicated on a completed order and assisting the installation crew with unloading.
Upon completing the install, the installation crew notifies the company driver that the job has been finished. They then wait until the driver arrives.
The driver verifies the quality of service performed (technical and quality approval procedure).
If installation has been performed properly, the installation team is allowed to leave and the driver executes any final settlements with the client by issuing appropriate documents and collecting any and all balances owing. Afterwards the driver settles the account with the AD.
The driver than gives the customer a self-addressed envelop with a customer satisfaction survey that the customer will mail at his/her convenience.
Other types of vans are also allowed, providing that the conditions for access to side loading are observed.
AD company van drivers should be permanent AD employees, responsible for an adequate scope of duties and financial liability for the equipment entrusted to them.

4.5.4. Installation Crew working with the AD
The installation crew consists of a minimum of 2 (two) persons employed by the AD on a piecework (contract) basis. Their remuneration is 40% of the net amount of the installation cost. All installation teams working for the AD must wear identically labelled uniforms, in line with the Komandor Group Book of Standards, i.e. two piece, blue worker uniforms with the Komandor official logo label. The cap to be worn is a 'baseball cap', also blue and also with the logo label. The uniform must be clean and tidy. It is recommended that each worker has three complete sets of uniforms, all to be cleaned once a week. All installation teams must be equipped with a complete set of tools. The task of furnishing the tools rests with the AD. A typical tool set for one crew consists of the following elements:

In addition, the equipment will also consist of:

The AD is obliged to provide training to installation crews covering comprehensive customer service. How to behave before, during and after the installation; what uniform to wear; how to perform various installations with consideration to aesthetics; how to use household equipment; and how to respect client's property (ceilings, floor, furniture etc.). Also, the AD is bound to periodically oversee all the installation teams to review methods and quality of installation services offered. All persons employed as installers will be obliged to permanently master their services and improve client service standards with the highest regard given to manners and behaviour.
You will obtain everything you require at your KOMANDOR branch. At the same time, you should take adequate care to keep in touch with your customers. It does make a difference that as an AD, driver or member of an installation team, that you carry a mobile phone.

Which tools shall you use?
ANY PROFESSIONAL TOOLS AND MATERIALS YOU MAY EVER NEED TO CONDUCT YOUR ACTIVITY CAN BE OBTAINED THROUGH KOMANDOR.

4.6. What resources must be invested, and what is the expected return?
The numbers used herein below are scores relating to an average order whose value equals 1000 pts. (Appendix 1)
All the values, in case of building a calculation of profitability of a given business, must relatively correspond to one another. A point system is used to represent relative dollar values since an order can potentially vary from $50 to $4,000.
Herein, an order is referred to as a single closet installation. In certain instances, one client may have more than one closet installed. Therefore, we should avoid relating the number of orders with the number of clients.
How do we re-calculate the score value into a monetary value? A sample order may be generated out of the 'Komandor Standard' computer program, and its value identified (Appendix 1).

Definition:

4.6.1. Start-up capital

4.6.2. Fixed costs

Note: Clearly indicate to installation workers to use cell phones once per installation.

4.6.3. Profit
Monthly income of Authorized Dealer:
With 100 orders per month,
order value = material value: 750 pts. + assembly value: 250 pts. = 1000 pts.
Commission: 20% commissions - on product sale
Remainder on services: 60% commissions

The final gross profit result is decreased by the personal income tax due. The tax amount may vary depending on a variety of factors and hence, should be evaluated for each individual employee by the accounting department.