Once an ENOR sells, neither the brand nor the holder can open the business in that territory alone. The holder has no operating right, and the brand no longer holds the territory. That makes the route back to the territory the central question for both sides: it shapes what the brand gives up and what the holder can expect.
There are two routes. The first is fixed in advance; the second is negotiated.
Route one: the repurchase option
A brand can attach a repurchase option when it lists an ENOR. The option has two terms, both set by the brand: an annual rate and a validity period. At any time within the validity period, counted from the sale, the brand can exercise the option at a set price: the amount the holder paid, grown at the annual rate for each year since the sale, plus a 10% exchange fee paid by the brand.
MUTE's Saudi Arabia ENOR shows how it works. MUTE listed it with an option of 10% a year for five years, and it sold on August 19, 2024. Until August 19, 2029, MUTE may buy it back. In year three the repurchase price is 1.331 times what the buyer paid, before the fee; in year five it is 1.611 times.
KEMA Storköksförsäljning chose a longer window for its Saudi Arabia ENOR: 9% a year for ten years from a sale on August 2, 2024. The window runs to August 2034, and a repurchase in the final year would cost 2.367 times the price paid, before the fee.
Exhibit 1Repurchase price as a multiple of the price paid, before the 10% fee
| Annual rate | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| 5% | 1.050 | 1.103 | 1.158 | 1.216 | 1.276 |
| 10% | 1.100 | 1.210 | 1.331 | 1.464 | 1.611 |
| 25% | 1.250 | 1.563 | 1.953 | 2.441 | 3.052 |
Three points are easy to miss. The option is the brand's alone; no holder can force a buyback. It lapses at the end of the validity period. And its terms are open at the point of sale, because a buyer's offer can accept the listed terms, propose different ones or leave the option out, with the brand deciding which offer to accept.
Route two: terms agreed with the holder
Where there is no repurchase option, or the window has closed, the brand and the holder have to agree. They might settle a buyback price, or agree to open the territory together, with the holder taking a role in the local business.
COLIVE's three sold ENORs, for Greece, the United Arab Emirates and Saudi Arabia, carry no repurchase option. If COLIVE wants to open in any of them, it will do so through their holders. COLIVE's listings for the United Arab Emirates and Saudi Arabia also say it is seeking operating partners, which signals the kind of agreement it has in mind.
What each side should look at
- Holders: the rate, the length of the window and when it started. A short window with a high rate can return a holding quickly, or not at all if the brand never exercises it.
- Brands: the year you are likely to want the territory back. A rate you can afford in that year is worth more than a low rate with a window that closes too soon.
- Both: the originator's preference on operating partners, which tells the holder whether a negotiated route is likely to be welcome.
The exchange's calculator on What is an ENOR applies the formula to any price, rate and year.