FRANCHISING

OVERVIEW
 Advantages of Franchise business Module:
Backing of an Established System
Shorter learning curve
Established trade mark or service mark
Economies of scale
Ready Branding and promotion
Transfer of management expertise
Training & support from the franchisor

Franchising
Franchising is a business system. It involves one party (the franchisor) granting
another (the franchisee) a right to handle a brand and use an established
management. In return franchisee commits to paying the franchisor a capital
investment, franchisee fees and complying with franchisee procedure.

Franchisor:
An entity or person owning the rights or license of a business. The franchisor owns
the overall rights and trademarks of the company and allows its franchisees to use
these rights and trademarks to do business.

Franchisee:
A franchisee is an individual or Entity who purchases the rights to use a company’s
trademarked name and business model to do business. The franchisee purchases
a franchise from the franchisor. The franchisee must follow certain business code
and guidelines already established by the franchisor.

Franchise Fee:
The franchise fee is an up-front (one-time) cost that a new franchisee pays to the
franchisor. In the franchise fee will cover the costs for initial training, support and
site selection.

Royalty Fee:
A royalty fee is an ongoing fee that the franchisee pays to the franchisor. This fee
is usually paid monthly and is typically calculated as a percentage of gross sales.

Franchisor’s Support & Responsibilities:

Franchisor’s prime responsibility is to provide Franchisee with Franchisor’s

Business Structure and proven processes
 Initial Support:

Backing of an established system

Franchising Agreement
A Trademark that will distinguish the business from competition
Assistance in site approval and advice on Plan Design
Listing of Licenses & Insurance
Assistance in short listing Vendors
Guidelines on the purchase of standard Equipment’s and Inventory
Guidelines on Standardized Point Of Sale and Software System
Guidelines on Inventory Management System
Promotional assistance in the form of promotional material’s Design etc.
Menu Planning and Pricing
Operational Manual & formats

On-Going Support:
Umbrella Brand Marketing through various avenues – Social media, Tie-ups etc.
Ongoing Training to all departments of Restaurant
Provide Access to all product developments through Standardized Recipes

Franchisee’s Support & Responsibilities

Initial franchise fee

finding locations
Leasehold improvements and equipment
hiring employees and operating the store
Paying royalty to the Franchisor
Execute the franchise business as per the terms laid down in the Franchising
Agreement
Support all marketing plans and execute the same.
Communicate to the Franchisor office of any training needs
Ensure food quality and conduct audits at all times
Leadership and Partnership

One of the most important skills you need to possess as a franchisee is the ability
to be pro-active and take initiative. You should be able to easily assume a
leadership role. You need to be certain that you understand how the entire system
works and not be afraid to ask us questions. It is especially important to
communicate anything that you notice that doesn't seem right to you. After all, you
are basically assuming a role of a brand associate and partner with us. Therefore,
you should be able to work together, share ideas, and resolve issues together. You
may notice something that we may not be aware of since you are much closer to
the business. We would probably appreciate your bringing concerns or
discrepancies to the table, especially if you offer possible solutions.

Communication
With all of the responsibilities that the franchisee holds, communication and
organizational skills are key skills to possess as a franchisee. As mentioned, it is
important to keep in close communication with us. In addition, you will need to be
able to communicate effectively with your customers, employees, vendors, and
other business contacts.

Organization
In your role as franchisee, you should be prepared to wear many hats. In operating
the business, you will most likely have to manage all the daily operations involved
in operating a business, including ordering supplies, meeting with customers and
vendors, preparing payroll, resolving discrepancies, etc. It is essential to be able to
organize all of your responsibilities so that everything gets done accurately and in a
timely manner. In conclusion, as long as you understand your role as a franchisee
and make every effort to carry it out thoroughly, you should be able to manage a
successful franchise.
Before you open:

✔ Training
You and your designee or manager will take part of our Orientation and two-
week training program.
✔ Site selection
You will be assisted in evaluating the location for your business.
✔ Restaurant/Store design
You will be provided with floor plans as per The Fresh Press specifications and
standards for your specific location.
✔ Equipment ordering
You will receive guidance on ordering your equipment’s as per The Fresh
Press specification.

After you open:

✔ Operations manual
The Fresh Press’s in-depth manual covers a full range of topics important to running your
Store operations.
✔ Field support
Our representative will help you get started and provide ongoing operational evaluations.
✔ Franchisee services
A Coordinator will serve as your main contact person, who is just a phone call or e-mail away.
✔ R&D
The Fresh Press product development team is committed to continuously upgrading and
invigorating its’ product offerings.
✔ Marketing
Marketing is crucial to the ongoing success of the Franchise and all franchisees contribute to a
pooled marketing fund which is re-invested into the business.
Location:
Generally, the most important factors for performance are the location of the
potential store and how well it is run. Because these key factors are unknown,
The Fresh Press cannot predict your results.
Considering this fact The Fresh Press cannot provide you with projections as to
potential sales, earnings and profitability. However we would be able to provide
you an illustration of operating costs based on our ongoing stores’ operations,
but this would not be an indication of your store locations performance.

The best way to get this information is to complete an application. After your
application is received, you will be contacted by our representative designated to
your region.

Support
Ongoing supports are provided before and after you open you’re The Fresh Press
store. As soon as you join our Franchise team, you’ll have access to our support
systems to get you started. Once open, systems are in place to help you operate
your location effectively.

FRANCHISING GUIDELINES

In all territories, The Fresh Press provides comprehensive and thorough support
for all franchisees including:
PRE-OPENING
Site selection assistance, Store design, guidelines on equipment, Operational
manual & formats, Initial orientation & training, Store opening promotions through its
common platforms such as Websites, Social media and designs for Local Store
Marketing.

POST-OPENING
Ongoing pooled promotional / advertising activity,
Regular field support,
Online web-based information exchange
Ongoing product and packaging development
Operational audits

FACTS AND FIGURES

INITIAL FRANCHISING FEE:

There is an initial franchise fee charged for all the intellectual property, manuals
and training.
ONGOING FEES:
Franchisees will be required to pay an ongoing monthly royalty fee towards The
Fresh Press brand mark use and for ongoing post-opening support by Franchisor

TRAINING:
At The Fresh Press we place great importance on operational standards and
customer service. You and your designee or manager will take part in our training
program. The success of a The Fresh Press franchise is to a large extent
dependent upon the enthusiasm of individual franchisees and the effort they and
their staff make in achieving excellent customer service and operational standards.
All Franchisees will be provided an Operational Manual, recipe measures, formats
etc. to assist them in covering a full range of topics important to running your
restaurant operations.

STEPS TO BECOMING ‘THE FRESH PRESS’ FRANCHISEE:

STEP 1
Apply
Simply complete the application included in this brochure and mail to;
__________________________

You may also contact us at +91 _________________

STEP 2
Research
Talk to our Franchisee representative to learn more about us. Visit the locations,
enjoy our exciting variety of menu and imagine what it would be like to join our terrific
team.

STEP 3
Join the team
It’s as easy as that. Once you have finished your initial research and have secured
approval to become a THE FRESH PRESS franchise owner, don’t wait. There’s a
world of opportunity waiting for you once you make your decision. We’re looking
forward to hearing from you soon!
 ‘THE FRESH PRESS’ SET UP EXPENSE HEADS
Here is a breakdown of expenses that you can expect to incur during the Franchisee
process. The ranges vary widely, and can be very different depending on condition
of the structure (shell condition or done up), location etc. as well as if, and to what
extent, equipment and fixtures are included in your site, among other things

TYPE OF EXPENDITURE
 Franchise Fee
 Architect Fee
 Property Security Deposit (approx.. 6 months rent)
 Equipment
 Leasehold improvements
 Signage
 Uniforms
 Inventory
 Small wares
 Training Expense
 Insurance
 Furniture
 POS System
 Accounting & Legal
 6 months’ rent (working capital)
 6 months’ Salary (working capital)
 Opening Expenses
 Other Working Capital

EXPENSES BREAKDOWN
1) This is the Franchise Fee to acquire the right to use ‘The Fresh Press’ Trademarks
and intellectual property.
2) The architectural fee covers the cost of a third party architect(s) we select and you
hire to prepare the Restaurants architectural and site plans.
3) You may lease or buy the Store's premises. The table above describes the cost
heads associated with obtaining and developing leased premises for the store. The
store typically is a free standing unit or in a mall or Food court in a commercial area.
It is approximately ____ to ____ square feet. If you lease the premises, rent and
security deposit depend on the site's size, condition, and location and the demand for
the site among prospective lessees. This estimate reflects a possible 6-month range
for rent and security deposit, but your rent and security deposit could be higher
depending on the site's particular characteristics, especially if it is in a large
metropolitan area. A "Shell Premises" means the unfinished retail space typically
provided by a landlord when leasing the premises.
4) Deposit on Leased property due on signing.
5) Required equipment includes but not limited to – Work tables, sinks, Refrigerators,
Freezers, Blenders, Juicers, Shelves and racks, Display counter etc.
6) Leasehold improvements, including wall treatment, floors. Counters, painting,
electrical, carpentry and related work, and contractor's fees depend on the site's size,
condition and location; the build-out required to make the premises suitable for your
Store; landlord allowances; and other factors.
7) Outdoor and indoor signs contracted by third party suppliers.
8) You must have an adequate opening supply of fruits, other food and beverage
products, small kitchenware cleaning, paper and packaging supplies, report forms,
and marketing materials. You may buy these items from us or authorized
independent suppliers.
9) Small wares include all serving utensils, kitchen supplies, and storage crates
baskets. etc.
10) Training: This covers travel, hotel and food, and compensation for our
principals and employees incurred or otherwise earned in the course of
providing your training.
11) Premiums for your Restaurant's insurance coverage depend on the cover
opted for eg. Fire, theft, etc.
12) Furniture includes tables, chairs, Side stations and similar Store items.
13) Point of Sales system for billing that is as per Franchisor specification.
14) Administrative: include utility, vendor and tax deposits, business licenses,
and legal, accounting and organizational costs.
15) Working Capital estimates the funds needed to cover your initial expenses
during the first 3 to 6 month of operation (other than the items identified
separately in the table), including initial advertising. These expenses include
payroll costs but not any draw or salary for you as well as associated tax
payments. This figure also represents additional funds for expenses incurred
with operating a going concern. Remember expense such as rent, utilities,
insurance and inventory occur on a rolling and on monthly basis and some
unexpected expenses will occur from time to time. This is only an estimate,
and it is possible that you will need additional working capital during the first
month you operate your Restaurant, and in order to continue operating prior
to any "break-even" point, and even for a longer time period after that.
Nothing herein should be interpreted to identify a point at which your
Restaurant will break even. We cannot guarantee when or if you’re
Restaurant will break even. Your costs will depend on whether you follow our
methods and procedures: your management skill, experience, and business
acumen: local economic conditions: the nature of the local market for your
products and services: the prevailing wage rate: competition: and your
Restaurant's sales during the initial period.
THE FRESH PRESS STORE OPENING FLOW:

- SENDING OF COMPLETED FRANCHISE OFFER DOCUMENT (FRANCHISEE To

FRANCHISOR)
- SENDING OF LETTER OF INTENT (FRANCHISEE To FRANCHISOR)
- SIGNING OF FRANCHISE AGREEMENT (FRANCHISOR & FRANCHISEE)
- ARCHITECT DRAWINGS / ELEVATION
- LAYOUT PLAN (Civil, plumbing, electrical, equipment)
- SUBMISSION OF LAYOUT PLAN & FIT-OUT SCHEDULE
- SUBMISSION AND APPROVAL OF BOQ
- EQUIPMENT VENDOR QUOTE APPROVAL
- QUOTE FOR ALL DESIGNS & PRINT
- BOARDOUT FLEX DESIGN—FLEX DESIGN TO BE SENT TO FOR APPROVAL.
- STORE SIGNAGE, MENU BOARD & MURALS ELEVATIONS TO BE SENT TO
FRANCHISOR FOR APPROVAL.
- LAYOUT PLAN APPROVAL / MALL PRE FIT-OUT COMPLAINCE –
COMMENCEMENT OF FIT-OUT
- EQUIPMENT ORDERING
- ORDERING OF UTENSILS, SMALL EUIPMENTS, POS, UNIFORM, PACKAGING,
CAMERA
- TRAINING OF RECRUITED TEAM
- SIGNAGE FIT-OUT
- MENU BOARD & WALL MURALS FIT-OUT
- EQUIPMENT FIT-OUT
- FOOD TRIALS
- OUTLET LAUNCH