QUALITY POLICY

Section: Merchandise and Trading Page No. 1 of 20

Department
Document No. SIDC-REACH-QPolicy-M&T-003

Revision No.: 02 Date: October 2022

DOCUMENT TITLE FRANCHISING POLICY

REVISION HISTORY

Page No. Details DRN No.

N.A. Initial Issuance 2021-097
Additional Details 2021-115
Additional Details: 2022-128
9 IV. Implementing Guidelines
9-10 #01 REACH QMS (Procedures/Policies/Work Instructions)
10 #02 Operational Manual
10 #2.1 Business Operations
10 #2.2 Customer Service
11 #2.3 Inventory Management
11 #2.4 Finance
12 #2.5 Accounting
13 #2.6 Membership Procedure
13 #2.7 Purchasing Procedure
13 #2.8 Data Privacy
13 #2.9 Marketing
13-15 V. Survivorship
19-20 VI. Mutual Termination; Termination by Franchisee
Deletion of the following in Definition of Terms:
2 #02 Advertising Fee
3 #10 Bookkeeping Records
5 #30 ACU in Definition
8 #51 Retail Method
Deletion of:
1-22 #01 Statement of Intent & Definitions up to
#22 Maintenance & Utilities
3 From #07 Audit to Inventory Count
7 Update #44 Proprietary Products

Prepared by: Reviewed by: Approved by:

Margarita D. Faral Hon. Rico B. Geron Dr. Angelito B. Bagui

AVP for Reach Chief Executive Officer Chairperson of the Board
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Document No. SIDC-REACH-QPolicy-M&T-003

Revision No.: 01 Date: September 2021

DOCUMENT TITLE FRANCHISING POLICY

I. Objective
The Policy provides a clear art features and regulations relative to the operation and
administration of Coopmart Franchising Business of Sorosoro Ibaba Development
Cooperative.

II. Scope
The provisions and rules embodied in the policy shall cover procedures, rules and
regulations in relation to operating the business and serving the members and
customers of Sorosoro Ibaba Development Cooperative.

III. Definition of Terms

 
1. Coopmart Franchising Agreement - refers to agreement between Franchisee and
SIDC for the operation of the Store under the SIDC System and Service Mark.

2. REACH QMS - refers to REACH business group quality manual which includes
quality procedures, quality policy, work instructions and forms.

3. Franchisee - the person/s named as the Franchisee on the signature page and
signing this Agreement as the Franchisee. If there is more than one Franchisee,
they will be jointly and severally liable for the obligations of the “Franchisee” under
this Agreement.

4. Finance Policy - covers the procedures and policy of Accounting, Billing and
Collection and Treasury Department.
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Document No. SIDC-REACH-QPolicy-M&T-003

Revision No.: 01 Date: September 2021

DOCUMENT TITLE FRANCHISING POLICY

IV. Implementing Guidelines

Qualification
1. He/She is a Regular or Associate member of SIDC in good standing.
2. An Employee-Member is also a qualified Franchisee, provided that there
is no clear conflict of interest.
3. In areas with existing Feeds Sales Outlet, the Member-Outlet shall be
offered first the business opportunity, if the Member-Outlet is not
interested, SIDC shall put – up a One-Stop-Shop project in the said area
for the members’ benefit.
4. The applicant must have the financial capabilities.
5. There should be no direct conflict of interest in SIDC’s Financing and
Feeds distribution and other existing business that may affect the
operation.
6. Will operate under SIDC’s policy.

Business Operation & Administrative … will reference to duly signed

Franchising Agreement

All approved Quality procedures, policies and work instructions that has direct
impact a store store shall apply to Franchisee as stated below:

1. REACH QMS
NO. PROCEDURE POLICY WORK INSTRUCTION
1.1 STORE OPENING & PEPTALK
CLOSING SIDC-REACH-WI-M&T-004
SIDC-REACH-QP-M&T-003
1.2 DISPLAY & MERCHANDISE PROPER DISPLAY
STACKING MANAGEMENT
SIDC-REACH-QP-M&T-004 SIDC-REACH-WI-M&T-001

1.3 INVENTORY MANAGEMENT

SIDC-REACH-QP-M&T-005
1.4 STORE SUGGESTED
ORDER PREPARATION
SIDC-REACH-QP-M&T-006
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Document No. SIDC-REACH-QPolicy-M&T-003

Revision No.: 01 Date: September 2021

DOCUMENT TITLE FRANCHISING POLICY

1.5 STOCK REQUISITION

SIDC-REACH-QP-M&T-013

NO. PROCEDURE POLICY WORK INSTRUCTION

1.6 CUSTOMER RETURN AND RETURN AND EXCHANGE
EXCHANGE POLICY
SIDC-REACH-QP-M&T-007 SIDC-REACH-QPolicy-M&T-002
1.7 MEATSHOP PREPARATION MEAT TIMPLADOS,
SIDC-REACH-QP-M&T-009 VEGETABLE AND FRUIT MIX
SIDC-REACH-WI-M&T-002
1.8 SENIOR CITIZEN DISCOUNT SENIOR CITIZEN POLICY AND
SIDC-REACH-QP-M&T-024 PROGRAM
SIDC-REACH-QPolicy-M&T-001
1.9 STOCK RECEIVING FROM
VENDOR
SIDC-REACH-QP-M&T-014
1.10 STOCK TRANSFER
SIDC-REACH-QP-M&T-015
1.11 RETURNED GOODS
SIDC-REACH-QP-M&T-016
1.12 SALES TRANSACTIONS
SIDC-REACH-QP-M&T-017
1.13 EXPIRATION DATE
MONITORING
SIDC-REACH-QP-M&T-019

2. Operational Manual
2.1 Business Operations
 Store Schedule from Monday to Sunday
 Store hours from 6am to 6pm for the Coopmarts and
from 6am to 7pm for Coop Supermarket.
 Coopmarts with meatshop store hours from 6am – 6pm
 Coopmarts without meatshop store hours from 8am – 5pm
 Store closure during holiday season :
1. Good Friday - Whole day
2. Dec 25 - Afternoon
3. Jan 1 - Morning
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Document No. SIDC-REACH-QPolicy-M&T-003

Revision No.: 01 Date: September 2021

DOCUMENT TITLE FRANCHISING POLICY

 Store Schedule on National Election Day:

No. of EMPLOYEES SHIFT REMARKS
11 staff and up 3 shifts 1/2 day duty for each shift
6 to 10 staff 2 shifts 1/2 day duty for each shift
5 staff and below Early closing ex: 7am to 12nn or 8am to 1pm

PRESCRIBED UNIFORM
FEMALE MALE
▪ Prescribed Uniform (no ▪ Prescribed Uniform (no
pockets) pockets)
▪ Open Toe Sandals ▪ Closed Shoes/ Rubber
▪ Neatly combed, with Hairnet, Shoes
minimal accessories and no ▪ Short and clean cuts,
colored hair and no colored hair.
▪ Allowed is small, conservative ▪ No jewelry, watch only
jewelry (ring, earrings) watch. ▪ Short and clean; no
▪ Short and clean; no nail polish. nail polish

2.2 Customer Service

1. Greet the customer with a friendly tone and smile.

2. Assist customer in arranging products in counter.
3. Punch items in cash register.
4. Pack items carefully in shopping bag.
5. Inform customer of amount of purchase.
6. Mention the amount received. Give exact change and receipt.
7. Thank customer and invite him/her back.

2.3 Inventory Management

Determine the FRSN (Fast, Regular, Slow, Non-Moving) items in our

Retail Stores.

FAST High turnover rate, basic goods, produced regularly & competitive.
REGULAR With average turnover rate, basic goods & competitive.
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Document No. SIDC-REACH-QPolicy-M&T-003

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DOCUMENT TITLE FRANCHISING POLICY

SLOW Not shipped in a certain amount of time (90-180 days), low turnover
rate & can contribute to waste of capital and resources.
NON MOVING Not utilized at all over a specific time frame, turnover rate is below 1
& stocked up over a long period of time.
(OPERATIONS MANUAL Rev. 03)

2.4 Finance Policy (SIDC-FD-QPolicy-TR-001)

2.4.1 Change Fund

Franchisee agrees to maintain at all times during the Term Franchise

Agreement a Change Fund of at least two thousand pesos (Php 2,000) to be
used for daily transactions.

2.4.2 Sales Remittance

The FRANCHISEE shall remit all cash sales to the FRANCHISOR

through SIDC Koopinoy Branch. Collections of all accounts receivables shall be
facilitated by the SIDC Koopinoy Branch. Any shortages found in the remittance
shall be charged from the shared profit

2.4.3 Inventory Variance

Inventory shortages found during random inventory count conducted by

the FRANCHISOR shall be deducted from the franchisee shared profit while
inventory shortages found during annual physical count shall be charged against
the collateral of the franchisee.

2.4.4 Profit/Loss sharing

The scheme of profit sharing would be: 60% for Franchisor and 40% for
Franchisee of gross profit. The release of allocated shared profit will be released
every 15th day after a month of operation.
All sales remittance shortages and inventory variances shall be deducted
from the Shared profit prior to the payout.

2.4.5 Control of Cash for Franchising Business (SIDC-FD-QP-TR-013)

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Document No. SIDC-REACH-QPolicy-M&T-003

Revision No.: 01 Date: September 2021

DOCUMENT TITLE FRANCHISING POLICY

2.4.6 Credit Application of Members to Franchisee (SIDC-FD-QP-BC-

007)
2.4.7 Collection of Accounts Receivable (SIDC-FD-QP-BC-009)
2.5 Accounting Policy

 Membership Purchases
 Revolving Fund
 General Fund

2.6 Membership Procedure

2.7.1 Membership Application (SIDC-M&S-QP-MEM-001)

2.7.2 Voluntary Termination (SIDC-M&S-QP-MEM-004)
2.7.3 Claim for Benefits (SIDC-MO-QP-MEM-005)

2.7 Purchasing Procedure (SIDC-FD-QP-PUR-001)

2.8 Data Privacy (SIDC-SS-QPolicy-DPO-001)
2.9 Marketing

2.9.1 Customer Complaint Handling (SIDC-MO-QP-MKTG-011)

V. Survivorship
 

VI. Termination
 
VII. Mutual Termination; Termination by Franchisee

(Reference Franchising Agreement)

Approved per BOD Resolution No. 132-S-2018