A franchise territory could be a region inside that a franchisee has the proper to find his or her franchise unit. you'll decision it the catchment basin for a selected franchise system consumers. If the franchise style is alone, just one franchise unit of a given franchise system are going to be placed inside it. From a franchisee’s point of view, this is often ideal because it implies that there'll be no competitive franchise units to traumatize. From your point of view as a franchisor, it should or might not be ideal, counting on the character of your franchise business and different factors.
As a franchisor, you earn most revenue once the franchise units in your franchise system profit. thus it's in your best interest to envision these units thrive. If you allot every franchise unit a disproportionately massive franchise territory, you may have a lot of potential customers than you'll be able to serve. chances are high that that you simply can find yourself losing them to competitive businesses. this is often not ideal. On the opposite hand, if you allot every franchise unit a disproportionately tiny territory, or if you permit quite one franchisee to line up franchise units in one territory, you'll simply find yourself undermining all of the franchise units. they'll realize themselves competitive for a restricted range of consumers. Sooner or later, a minimum of one in every of them can go beneath as a result of it'll be not possible to pull in enough sales or profits to continue running. Franchise Location In order to avoid future disagreements together with your franchisees over franchise territory, you want to certify that this issue is addressed long and in width within the franchise documents (i.e. the franchise speech act document and also the franchise agreement). most significantly the conversations on the topic ought to occur before any documents area unit signed or transactions between you and your prospective franchisees completed. Hashing out details of this type beforehand is that the best thanks to make sure that franchising is as sleek a method as doable. There area unit variety of details you ought to clarify in your conversations together with your franchisees regarding territories. you ought to confirm to them what the character of the territories are going to be (i.e. exclusive, non-exclusive or non-existent). you ought to conjointly clarify what the method of determinant territories are going to be. If you reserve the proper to work out the placement of the franchise unit, you ought to say thus. If the franchisee is allowed to grant some input into the decision-making method, you ought to indicate this. you ought to even be clear regarding whether or not you may be imposing conditions like minimum sales quotas on your franchisees.
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Is there any certain formula for franchise system success? The safest answer to the present question is “No.” In business, there ar ne'er any guarantees once it involves systems involving discourse factors like others and entities. there'll continuously be some part of the unpredictable concerning them. you'll anticipate, speculate, and verify potential outcomes in your franchise system, and you'll work towards them. within the best case situation, everything can estimate well and you'll succeed on the far side your wildest expectations. within the worst case situation, associate surprising issue will undo all of your well illustrated previews, and if you do not have any plan b, you'll be during a fix.
This is not distinctive to franchising. it's the means of the business world. you'll set up, coordinate and implement arrangements, however there aren't any guarantees that you simply can profit. However, if you're hospitable inventive concepts, and if you're willing to place all told the diligence necessary to urge things started so to sustain them, you have got some hope of achieving success. later on, the key to doing well is to find out what conditions, choices and actions were behind your previous mistakes, so to avoid replicating them. Experience, whether or not direct or indirect, is that the final teacher in business. it's complemented by the bravery to require calculated risks and therefore the prudence to put down a fall-back possibility before time. The Franchisee think about your Franchise System For your franchise system to figure, it'll have to be compelled to reach a balance between meeting your own money goals and ambitions and facultative your franchisees to thrive. because the franchisor, you'll have management over such factors as promoting, franchise style and operation, and products quality. However, you'll not have the flexibility to force your franchisees to figure among the boundaries you have got set. they're going to have to be compelled to be amenable to the terms of your franchise agreement so as for your franchise relationship to figure. they're going to even have to possess social control skills and skills conterminous with the requirements of your specific franchise. it'd does one well to seem into their backgrounds before merchandising franchising rights to them. It is additionally necessary to administer your franchisees a respiration likelihood once distribution them franchise territories. you may assume that putting in various franchises during a explicit territory can maximize your potential revenues. However, if you miscalculate, you'll cause a number of the franchises to travel out of business. this may solely undermine your franchise system. Sector spotlight: pizza pie franchises
From pizza pie Hut to dada John’s, pizza pie delivery account for a few of franchising’s biggest brands. Their stellar success attests to each the product’s soaring quality – the delivery market grew 2 hundredth in between 2006-2011 – and it’s suitableness to the franchising model. Affordable, fast and satisfying the brain’s reward centres, pizza pie is additionally fairly recession-proof – food suited associate degree age of self-denial. As Dominos chief executive officer Don Meij aforementioned when the company’s AGM last year: "In this business, it is not such a lot what happens within the economy, it's very our promotions and something a competition may do this would have a much bigger impact on US. Were you to style the foremost economical style of fast-food from the operator’s perspective you may produce one thing love the pizza pie, variations of that are created for thousands of years. Simplicity Think about it this way: it’s effectively one, massive piece of bread coated in pasta sauce, cheese and alternative toppings. That’s pretty easy very, and fast and straightforward to create in bulk. That customers love the style the maximum amount as operators price its simplicity makes for quite an product. Simple, yes, however not while not selection. On the contrary, no alternative food kind permits such scope for customisation. instead of selecting from a menu of rigid decisions, you'll be able to select no matter combination of toppings you favor. Big players like dada John’s and pizza pie Hut introduce perpetually that the menu ne'er grows tired. simply once you thought they’d exhausted all cheap prospects a stuffed crust, super-thin bases and alternative innovations seem on the menu. “We have a groundwork and development director and obtain plenty of input from our franchisees, our franchise informative council and our national promoting informative council,” he says. “We square measure perpetually innovating and developing new pizzas.” Pizza Hut, therefore named as a result of the initial edifice was formed sort of a hut, is that the most venerable of operators. Launched in Kansas in 1958 and incoming on these shores in 1973, it's restaurants similarly as home delivery shops though the latter element is what franchisees operate. Franchisees So there’s masses to suggest regarding the merchandise. therefore what will it go for succeed as a franchisee? In common with alternative fast-food sectors, pizza pie delivery doesn’t essentially need franchisees with food-service expertise. “It can contribute, as a product if you make good efforts for the thing,” “but you'll simply have expertise in operation the other business or are concerned in business at varied levels – then you bring a distinct outlook thereto. “What we have a tendency to tell those folks is that it’s typically smart to own somebody in your setup with expertise within the fast-food business. However, we provide a comprehensive, three-week coaching programme and current coaching, in order that they will learn the business and operate it while not previous expertise.” It’s not such a lot a cooking background as a robust character that marks you out as franchisee material. “I assume most of all you’ve have to be compelled to be glowing, personable. It’s country business, not solely together with your workers however conjointly with customers; you’ve have to be compelled to be ready to relate to folks.” Your modus vivendi wants square measure another thought. “It’s a seven-day week business, not a Monday to Fri, nine-to-five job,” says Mason. “Our key hours square measure between 4pm and 9pm. “Obviously weekday, Friday, Sabbatum and Sunday square measure the busiest nights of the week, therefore you’ve have to be compelled to be willing to figure weekends.” Insurance has become a part of life, whether or not personal or lay, and franchise operators with locations in high risk areas definitely apprehend the worth of getting a reliable insurance supplier. By assessing the risks of your explicit franchise and considering however insurance may build a cheap investment, future unexpected expenses and ensuing challenges are often discomfited. Consider a number of the subsequent aspects of insuring your franchise: - Franchise speech act Documents embody sections during which franchisees ar created responsive to what their insurance obligations ar before linguistic communication any agreements. Franchisees move to analysis these obligations furthermore as any suggested insurance firms or agents. wherever potential or pragmatic, think about what various choices could exist in terms of insurance suppliers and speak brazenly together with your franchisor concerning insurance needs and your desires or desires. - think about what insurance desires can arise once hiring staff and valuate mandatory amount needs to become well versed in what they mean for your franchise (worker’s compensation, liability, disability). Again, think about what choices exist in terms of insurance and speak brazenly together with your franchisor, furthermore as existing or fellow franchisees. - Become aware of what could cause risks in terms of interruptions to your business operations, those unknowns that might force you to shut your doors. refer to your franchisor concerning business interruptions and the way these matters ar generally handled by outstanding existing franchisees. refer to alternative existing franchisees to search out out additional concerning the way to best handle the unknowns of potential business interruption. This side of insurance is also significantly vital for franchisees WHO don\'t have associate adequate various financial gain supply to fund their expenses and WHO bank totally or a minimum of a good deal on profits from their franchise operation. - Take time to contemplate and list what circumstances may arise within the way forward for your franchise operation that may forestall your location from conducting business, and build a thought to hide these periods to the most effective of your ability. Aim to arrange amount matters before disasters strike and be as thorough in your issues as potential, whereas remaining moderately. Insurance exists to hide businesses and aspects of running a business wherever damages, liabilities, and profit loss will occur. As business, together with the remainder of life, are often unpredictable and even random occurrences will have an effect on operations, franchisees ar inspired to talk brazenly with their franchisor concerning insurance choices, needs, and to debate insurance matters with alternative franchisees. practiced veteran franchisees and people within the same native space is also able to supply valuable insight on the forms of insurance that prove or have proved helpful, furthermore as shed light-weight on potential things that might warrant amount for your explicit franchise construct. It has been ascertained that of all the companies, food business has forever been the useful one as a result of individuals ought to eat despite what their economy appears like. individuals like to eat smart quality food at cheaper costs thus if you target Brobdingnagian individuals traffic and provide them food at low costs there's in all probability no worry for business loss. beginning with a eating house could be a bit troublesome and risky. it's going to be troublesome as a result of you'll ought to write a correct business set up, prepare for loans as they have a high capital for investment and want an honest selling set up for its advertisements etc. and it'll still have a risk of failure if you're unable to draw in enough customers towards your product.
One of the straightforward ways in which to induce in to the food business is obtaining started with a franchise food cart. this concept has already got enough recognition everywhere the globe. several quick foods offer franchise opportunities to those that need to induce into this business. whole recognition is perhaps one in all the foremost vital think about creating a business made and obtaining benefit the registers quicker as a result of you utilize the trademark system of a made business. For such reasons food cart business offers a perfect franchising chance. There ar several positive reasons to take a position during a food cart business as an example it desires majuscule, no business and selling plans required, no ought to pay cash on high-ticket advertisements, doesn't need any space/furniture to produce sitting space, no ought to own/rent accommodation for your business, little menu not like restaurants and is definitely movable in order that if you are feeling your location doesn't offer you expected population of shoppers you'll move your food cart to elsewhere. Food carts business is AN escalating business in Philippines these days. Here ar some tips for beginning a franchise food cart business: • Identify your product or brand: initial of all you must do a look on the merchandise brands accessible within the market and opt for one, that you're thinking that are going to be profitable for you. • Ensure the standard and affordability of the merchandises: the standard target market of food cart aren't terribly specific concerning genuineness or whole names of the product you provide, however the merchandise should be of excellent quality, delicious and cheap. • Choose the proper Franchise: ensure that the franchisor you decide on could be a member of either of the franchise associations within the Philippines. Just ensure to consult a professional before linguistic communication the franchise agreement to avoid complications within the business. • Get an honest beginning location: ensure the placement you choose for beginning you business should have substantial potential market in spite of whether or not you decide on to place your food cart outlet on a residential or industrial space. Location plays an enormous role within the success of your food cart business. • Cart vogue and style: Design your food cart during a thanks to attract the purchasers of all ages. • Ensure smart service and operational system: Most of the days businesses fail attributable to a foul service albeit if they're marketing smart quality merchandise. you wish to spot the customer’s demands and your team should be trained to present higher service to the purchasers to satisfy them. • Securing all necessary permits before obtaining started: before operations, you must register your business by attaining all necessary permits. Your business advisor can cause you to to acquaint with the procedures and needs. Bringing a talent or talent is you’re the primary step to beginning a business is to bring innovation and creative thinking within the ancient manner of doing a business. Food business can ought to embody the private characteristics of AN bourgeois to grow and flourish. Any reasonably business need toil, smart social relations, flexibility and a high degree of commitment that you'll ought to follow in your franchise food cart business also. Most of all, you must love your work and love with full spirit to form your food cart business made. By opting to take a position with brands that area unit established and toughened with what it takes to create franchise ideas fortunate, which have multiple locations over an over sized space either regionally or across the country, franchisees will limit a number of the risks which will return together with a business that's unaccustomed franchising. Franchising is a challenging work and success will depend in time and place. Innovation of franchise and locations are often an honest indication of a resilient business model and construct.
Many businesses unaccustomed franchising area unit still learning from trial and error. in fact even established brands learn a good several things within the realm of business savvy even years when coming into the franchise sector and even businesses unaccustomed franchising can give a stable and fortunate investment chance. however, new potential franchisees will minimize risks once they enter investment arrangements with brands that have established themselves within the franchise world, or at the terribly least provide a portfolio that indicates promise supported alternative factors that indicate the business is capable of franchising success. These factors might embody the very fact that the house owners of the business have expertise franchising beneath another name, or maybe have toughened with success running the business in relevant ways that in numerous markets, therefore adding to the dependability of the brand’s success if it's go by a replacement franchisee in various markets. Research & Investigate (Even More) Know the whole you're fascinated by, as well as however things area unit operated on the far side the plain. By chatting with existing franchisees, each those in your region and people outside of it for the sake of leveling your sources thanks to their potential biases, you'll be able to expand on the image of the franchisor a good deal. Be in expectation and stay unsurprised do you have to notice each happy and sad franchisees, World Health Organization provide variable views on the franchisor. The goal isn’t to find some sad franchisees and decision off all bets. The goal is to create a balanced call supported the data obtainable to you thru the shared statement and to then take into account your own state of affairs, reflective on however possible it's that you’ll finally end up inhabitancy within the glad or discontent heap with time. This conclusion may be a personal one and potential franchisees should decide for themselves. nonetheless speaking with existing franchisees is barely one side of analysis. By deed a revealing document (either Federal Trade Commission (FTC) or Uniform Franchise providing Circular (UFOC) formats) for those franchises beneath review as prospective investment opportunities, potential franchisees will establish additional concerning any former franchisees World Health Organization might have walked aloof from their agreement with the franchisor. By reaching dead set these people to debate the circumstances close this call, analysis covers not solely the prevailing franchisees however people who have since cut off their ties with the franchisor. The revealing document permits potential franchisees to urge a fair additional careful read of however the franchise operation has developed with time and specific events which will indicate warning signs or valuable shifts that serve to strengthen the franchise. Factors like the continuing substantiative role of technology has allowed the franchise trade to expand round the globe in unexampled ways in which. a number of the franchise businesses that have succeeded at reaching this year’s high a hundred world Franchises Report have attained their place supported variety of specific criteria, with every facet light a first enterprise.
This year’s report covers however world franchising is dynamical so far, international markets that area unit experiencing expansive success and interest from investors, also as a number of the most recent franchise industries that area unit creating headway internationally with AN hyperbolic show of prospective franchisee interest. the explanations behind the success of a number of this year’s chart toppers area unit coupled not solely to the quantity of recent locations opened worldwide however additionally to diversifications franchise systems create to stay relevant in AN ever dynamical world. One example of this found within the report is 7-Eleven, an extended standing international franchise that continues to change its stripes to higher mix with the scene of franchising because it changes. per the report, “7-Eleven is withal growing and experiencing sure transitions to change its array of merchandise. Evolving on the far side primary commodities of fuel, cigarettes and snacks, the shop is creating moves to become additional of a destination instead of a stop on the system.” These innovations of a franchise are also the foundation of its operation replicate the innovation necessary to achieve a worldwide market over time. during this case, such innovation reflects a temperament to leap into food service choices for visiting customers to maneuver on the far side the everyday product choice of former years, adapting to demand and a dynamical food industry. The “Honorable Mention” section of this year’s report options franchise systems that fall under the 101-125 bracket, a number of that having improved previous year ranking, and focuses on observance the up and coming back franchises which will alright reach the 1-100 bracket into the long run. the quantity of undefeated franchise systems creating waves in terms of world growth and also the alternative varied criteria may simply move up from this bracket in future years, that indicates the ever dynamical franchise system across the globe and also the opportunities that also exist. although the highest 10 remains mostly unchanged, with 9/10 franchises enjoying identical 1-10 rank as last year, the actual fact that any modification from year to year happens actually highlights the dynamic nature of franchising. As the results of a centered compilation effort going down over many months, the Franchise Direct team delivers this report back to potential and existing franchisees and franchisors, trade professionals, and anyone curious about the worldwide franchise trade. careful info at intervals the report is efficacious to each potential and existing franchisees and franchisors UN agency want to any take into account however internationally undefeated enterprises area unit established and sustained year once year. What makes a undefeated franchise and the way do a number of these franchise systems reside the highest year once year? What will franchising normally learn from reports like this and the way will this contribute to excellence in franchising in spite of the world or country within which franchises operate? Each year the Federal Trade Commission needs franchisors to end any updates to their Franchise speech act Document, which suggests prospective franchise partners have access to associate updated version of the FDD when the top of the franchisor’s year. This demand means that franchisors should give updated FDDs no later than a hundred and twenty days from the top of their year amount so franchisees researching the system will get a contemporary perspective on what’s ahead for the new year.
Though the responsibility remains with the franchisor to implement FDD changes and furnish updates to franchisees, there square measure variety of specific obligations franchisors have in respect to FDD change, yet nearly as good apply actions that potential franchisees will desire defend themselves throughout preliminary analysis. Potential franchisees will think about the following: Timing is Everything Individuals analysising the franchise trade for the correct chance to maneuver into should think about once their research is going on in terms of FDD update obligations. the perfect time to hunt out the foremost up up to now FDD is throughout that post-120 day amount once franchisors square measure needed by the independent agency to form and distribute up up to now info supported gift commercial enterprise info. Access to correct info once considering franchise investments is significant and positioning due diligence analysis around these pointers will create researching easier for all parties concerned. Though changes in terms of the money standing (called Material Changes, maybe involving bankruptcy or legal battles, among alternative situations) of a franchise system should be disclosed by franchisors on a quarterly basis throughout any given year, franchisees had best to think about the precise year dates of the particular franchise systems they\'re analysising and therefore the timeline of their research vs. update needs. Considering speech act and change needs before analysis intensifies may be a wise option to at the terribly least enhance all aspects of remaining sophisticated the maximum amount as potential. Franchisee Update Requests Honored For the foremost half, potential franchise partners square measure able to request up up to now info before creating any lasting commitments. this implies that franchisors square measure still indebted, once affordable requests square measure created by potential franchisees, to furnish the most recent FDD and any quarterly updates, despite the actual fact that a current FDD has already been provided with and a receipt document signed by the franchisee. This generally applies to things wherever a a lot of up up to now version of the FDD is associateticipated to become accessible and therefore the potential franchisee desires to amass the most recent version before linguistic communication an agreement. Such updates square measure generally provided with at some stage before linguistic communication, although there\'s no strict timeline in situ for this, even when a receipt document is signed. Franchisees that favor to wait to sign agreements with a franchisor till the foremost up up to now FDD is provided with could do thus, waiting days, weeks, or maybe months. This strategy, as a way to stay as sophisticated as potential and with smart reason, pays off within the long-standing time if the most recent FDD discloses unsavory info that protects the franchisee from having created a poor investment call. Likewise, {at times|sometimes|from time to time|occasionally|now associated then|every now and then} an updated FDD could disclose new criteria or fees or disadvantages that the previous FDD didn\'t contain, that makes holding out of venture for a few investors. Franchisees should think about initial and foremost however aligned with and interested they\'re within the franchisor’s business model and thought, with tries to stay sophisticated prioritized supported matters and therefore the viability of matters. DALLAS, TX - Dickey’s Barbecue building is not any intruder to growth. The Texas-based quick casual building was recently named the quickest Growing chain by Technomic’s prime five hundred Annual Report. Dickey’s outpaced several larger quick casual building chains to seize the title.
“Our whole is aflame across the US state and chief executive officer of Dickey’s Barbecue Restaurants, Incorporation – our explosive growth over the last 2 years shows we have a tendency to air on the proper track as a whole and there's no stopping our growth potential.” The Techno-mic report highlighted the signs of recovery within the U.S. building business and showed that the highest 10 fastest-growing chains’ sales accounted for $10.3 billion, a twenty two p.c increase over 2011. In 2012, Dickey’s Barbecue additional virtually one hundred new locations, several multi-unit franchise deals and opened in new markets. Dickey’s sealed $1.67 million in new deals this year with many multi-unit agreements together with MN, Washington, Montana, Arkansas and American state. “The variety of multi-unit deals we've signed this year very place U.S. on pace for large growth,” aforementioned Dickey. “People acknowledge Dickey’s as associate energized whole with a powerful presence within the business – I’m excited to point out the business what we've to supply within the coming back months.” About Dickey's Barbecue Restaurants Dickey’s Barbecue was supported by Travis Dickey with the goal of authentic slow preserved barbecue. quite seventy years later, the Dallas-based family run barbecue franchise still offers a high quality choice of signature meats, home vogue sides, sourish sauce and free youngsters meals each Sunday. All meats ar slow preserved on website in every building. The fast-casual family-friendly idea has enlarged to virtually three hundred locations in forty three states and holds the title of the world’s largest barbecue franchise. Nation’s building News named Dickey’s “Top 5 Growth Chains” and that they were conjointly named “Best Franchise Deal” by QSR Magazine. If you'd like a lot of info concerning owning a franchise, attend http://www.franchiseworks.com. About www.FranchiseWorks.com FranchiseWorks.com was established in 1999 with the goal of providing qualified prospective entrepreneurs with the proper franchise or business chance that meets his or her wants. we have a tendency to showcase many franchise and business opportunities in a very form of industries together with new start-ups to established corporations. www.FranchiseWorks.com conjointly has info on franchise funding sources, business chance and franchise trade extravaganza schedules together with the newest franchise news. for added franchise info visit http://www.franchiseworks.com or the franchise web log - http://franchiseworksblog.blogspot.com. For a lot of info visit computer network.dickeys.com by Terry at FranchiseWorks Owning a expert Franchise is very different to being a franchise proprietor, often requiring a much higher grade of dedication but furthermore producing higher outcomes.
"Although the claims on a expert Franchise Owner are much larger than that of a franchise proprietor, there are numerous benefits to owning a expert Franchise including a greater say in the franchise form and ability for enterprise expansion."The firm pledge needed to be a expert Franchise proprietor is much larger than that of a lone unit franchise owner. One of the main reasons for this is that a Master Franchise Owner will own a much bigger business than a franchise owner. while franchise proprietors commonly open one position and will possibly construct their enterprise by unfastening a second unit, a Master Franchise proprietor will own the franchise network for an whole country. To double-check that the proprietor of a expert Franchise is made to launch multiple flats, the franchisor will usually identify a smallest number of positions to be opened inside a exact timescale in the affirmation. Due to the expert Franchise Owner's obligation to open a number of positions, they will commonly own and function a navigate location and then recruit a mesh of franchise proprietors to operate farther locations. The expert Franchise proprietor will be responsible for organising the franchise mesh and will generally have to provide support and training to franchise proprietors (although sometimes this is finished by the franchisor), as well as being to blame for employing value franchise proprietors to the network. Part of the franchisor's function is to ensure that the expert Franchise Owner has all the skills, information and back-up needed to provide productive training and support to its franchise proprietors. To prepare expert Franchise Owners for this, the franchisor usually supplies them with methodical training that double-checks they are competent in all aspects of the enterprise. commonly a expert Franchise proprietor is sought by foreign brands looking to elaborate their franchise into a new country. As a outcome, the expert Franchise Owner will be conveying an entirely new emblem into their market. Before a franchisor makes a expert Franchise available, they will have ensured their concept is effectively franchised all through their own homeland and will sometimes primarily start franchising abroad themselves to double-check the concept works internationally. More often than not, although the basics of the franchise form are kept, when a franchise is going into a new market little adaptations are made to double-check that it suits the market. The Master Franchise proprietor will generally have some leverage on these alterations and, as a outcome, will have more control and state into how the franchise is functioned than a lone unit franchise proprietor would have. Additionally, a Master Franchise supplies more opportunity to establish a growing enterprise. This is because a Master Franchise agreement often only states the minimum number of locations to be opened, which endows the expert Franchise proprietor to establish as numerous positions as they seem will be successful inside their territory. Not only is a Master Franchise more expensive than a lone unit franchise, but franchisors are also more restrictive in the kind of candidates they desire to request. This is because a franchisor will desire to make certain the expert Franchise proprietor has the financial backing, experience and qualifications required to set up and support a growing franchise mesh. The higher buying into levels and ability groups most franchisors look for in expert Franchise proprietor candidates means that they are generally belongs to by currently established businesses, business partnerships or highly skilled entrepreneurs. Although the demands on a Master Franchise proprietor are much larger than that of a franchise owner, there are numerous advantages to owning a expert Franchise including a larger say in the franchise model and ability for enterprise expansion. thus, for the right enterprise or entrepreneur, owning a expert Franchise could be the new business opening they are looking for. Reposted and Reported by Derin Ibrahim Article released on: 18th Mar 2011 |
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