FRANCHISE OPPORTUNITIES

Transcription

1 FRANCHISE OPPORTUNITIES Donut resist the donut business!

2 Contents Why Donut King? 3 Who is RFG? 4 How the King came to rule 5 Hot diggity dog - more than only donuts! 6 Work for yourself, but donut do it alone 7 Training and support 8 Our store models 9 Investment required 10 Steps to becoming a franchisee 11 What should I do next? 13 Frequently asked questions 14 Donut hesitate to contact us 16 2

3 Why Donut King? Donut King has been serving the Donut King Cinnamon Donut for over 30 years, and is now much, much more than just a donut shop. Our range of donuts, hot dogs, coffee and cold drinks are an Australian icon. Since opening our first store in 1981, we ve been growing steadily. We now have over 300 stores throughout every Australian state and territory and we re still growing. 3

4 Who is RFG? RFG is the owner, developer and manager of the Donut King, Brumby s Bakery, Michel s Patisserie, bb s Café, Esquires, Gloria Jean s Coffees, It s A Grind, The Coffee Guy, Café2U, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza Bar franchise systems. In addition, the Company is a significant wholesale coffee roaster supplying existing Brand Systems and third party accounts under the Di Bella Coffee, Evolution Coffee Roasters, and Roasting Australia brands. A WORD FROM RFG S CEO On behalf of Retail Food Group, I would like to thank you for your interest in the Donut King franchise system. RFG s Brand Systems are market leaders, selling their quality products to millions of customers every year. A franchise with RFG provides not only a highly respected brand name, but the stability, expertise and support of a fully integrated multi-brand franchisor. Through the proven business philosophy of strength in brands, RFG offers franchisees expert training in a world class training facility, ongoing support and development opportunities, barista training and coffee excellence training, strong supply chain relationships and access to superior buying power. Dedicated Brand System franchise support networks provide regular operational support, and best in class support teams continually develop national and local area marketing campaigns to drive customer visitation. With a stylish new store fit out and an array of new products there is no better time than now to become a member of the Donut King and RFG family. Sincerely, Andre Nell RFG Managing Director 4

5 How the King came to rule WE VE GROWN UP WITH YOU For most Aussies, at least once in our lives, we have taken a trip to Donut King for a delicious treat. The Donut King store stood out in the food court, like a giant pink beacon. The brightly coloured iced donuts, the squishy, creamy delights of the cream and jam donuts, experiencing the magic of the warm cinnamon donuts being created, bouncing along that mini conveyor belt and landing in a delicious carousel of cinnamon and sugar, to be eaten fresh and hot. We ve all been there and millions of Aussies have grown up sharing this experience, it s a place for the young and the young at heart. HOW THE KING CAME TO RULE It is amazing to look back at photos of the first Donut King store, which opened in Sydney in 1981 and to appreciate the progression from a rudimentary franchise system to a franchise system with over 300 stores throughout Australia, the vast majority of which are owned and operated by franchisees. The sweet simplicity of producing our donuts means that franchise owners are able to focus on their customers and growing their business. Today Donut King offers its customers both young and young at heart a range of mouth-watering donuts (cake and yeast), espresso coffee, hot and cold beverages, signature Quakeshakes, soft serve ice cream, breakfast toast and hot dogs not to mention hot cinnamon donuts cooked to order. As Australia s largest specialty donut and coffee chain, Donut King serves millions of donuts to Australians every year! As a business package, Donut King provides all support systems, marketing, operations manuals and training along with ongoing field advice and coaching to assist our franchise owners. Donut King is truly an icon in the retail food market, attracting customers from all ages and walks of life and delighting them with a fun experience and delicious treats and beverages. First Donut King store in Bondi,

6 Hot diggity dog - more than only donuts! OUR TASTES HAVE EVOLVED TOO Since the beginning, almost 3 decades ago, we d like to think that Donut King has grown up. Tastes change over time and our tastes have changed too. We still love the old favourites, but we ve also introduced some changes for the better. Your local Donut King now stocks a wider range of snack options, including smoothies and milkshakes. You ll also find Fruit Freezes and some of the best tasting coffees around. If you re looking for something more substantial, you can t go past our gourmet range of hot dogs or our newest addition to the royal family, our Warm Mini Jam Balls, fresh out of our donut making robot! OUR MENU Donut King is all about fun and life s little rewards. It s this philosophy that brings our customers back time after time. Our snack-tastic cake donuts are made with a cake mixture and topped in a range of delicious fondants. Then we finish the job with an array of sprinkles, 100s and 1000s and even a chocolate or novelty topper! It s small in size, but great for that cheeky little indulgent treat. Our classic yeast donuts come in a range of shapes and are an absolute winner. They are also decorated with our very own Donut King fondant, sprinkles and novelties. Our tasty hot dog range starts with our classic Regular Dog through to Hot Dogs with delicious extras, like caramelised onion, tasty bacon, and shredded cheese. Take your tastebuds back in time with our traditional mouth watering soft serves, available in a classic, crunchy cone or a sundae with a burst of flavour. The perfect way to chill out! For our coffee loving customers, Royal Bean is a unique combination of beans sourced from international locations and roasted to perfection to make Royal Bean a rich, smooth and desirable cup of coffee. Fruit Freeze is available in fruiti-licious flavours of mango and strawberry for you to enjoy! 6

7 Work for yourself, but donut do it alone ABOUT RFG Donut King is a much loved brand of Retail Food Group (RFG), Australia s largest multi brand retail food franchise operator. RFG s proven business models and support systems have been perfected over 25 years of operation, and the company has built an experienced and highly skilled support network to ensure the success of our franchise networks. RFG commenced in 1989 as the owner and manager of approximately 50 Donut King and bb s Café stores, RFG has now grown to 11 franchise systems, offering high quality products, innovative store designs and exceptional customer service, RFG s franchise systems are some of the most successful in Australia WHY FRANCHISING Franchising offers business buyers the opportunity to be in business for themselves, but not by themselves.the benefits of being part of a franchise system are significant, with franchisees getting access to : A competitive edge via use of an established well-known brand; Established and proven business systems; Sophisticated supply chain solutions; Enhanced advertising frequency and marketing opportunity; Greater brand awareness through the visibility of the brand; and a broad range of products, services and training programs. 7

8 Training and support Being part of a franchise system means you have full support of tried and tested existing systems together with guidance to help you get into your own business. We give you the tools to grow and run a robust business. Part of our support includes: LEARNING AND DEVELOPING TRAINING People from all walks of life can become successful Donut King franchisees. No prior baking or coffee knowledge is required. A comprehensive preliminary training program is provided for all new owners covering theoretical and practical aspects of coffee making, customer service and operational facets, all training provided in our state of the art, purpose built training academy on the Gold Coast. BUYING POWER PROCUREMENT The experienced Donut King procurement team have a proven track record of managing key supply chains within the food industry. Their focus is on managing suppliers to deliver quality, supply chain integrity, innovation and value. They utilise the strength across all of our brands to manage this process. All of this means greater savings, efficiencies and service for our franchisees. Once your training in the academy is completed, an in-store practical component follows, as does onsite assistance at opening or takeover stage. Our franchisees have access to comprehensive online training programs, Inspire and RIOT, to help train their team. In-store training is delivered on a needs basis by our dedicated Sales and Performance Managers and Barista Trainers at no additional cost. OPERATIONAL ASSISTANCE The Donut King operations team are there to help you, with a dedicated Sales and Performance Manager who will review your profit and loss statement and give guidance to improve your profitability in line with the national average; COGS, labour and sales. Your BDM will help you set daily targets that will work towards achieving your overall goals and assist you with any training you and your staff require to help you get the most out of your business. 8

9 Our store models WHICH STORE OPTION SUITS ME BEST? There are a range of store options available to Donut King franchisees. Talk to our team to discuss the sites that are currently available in your state. Donut King stores are generally located in large shopping centres and smaller busy local shopping centres. Donut King s new store design is available in three formats; Small store layout: 40m 2 60m 2 Large store layout: 60m 2 100m 2 Kiosk store layout: 24m 2 30m 2 STORE CONVERSION Owners of existing cafés and food outlets are offered the opportunity of converting their existing business to a Donut King franchise. In doing so, the business owner then has full access to the significant benefits of being part of a franchise system. Couple this with the combined strength of a multibrand franchisor and your existing business has a whole new opportunity for success. Contact Retail Food Group to discuss whether your existing business would be suitable for conversion to a Donut King franchise NEW STORES The flexibility of the Donut King store design mean that all store formats can be adapted to a broad range of locations. Whether you are interested in a kiosk, small store or large store, we have an option that will suit your operational needs. New Donut King sites are listed for sale on the Retail Food Group website, as well as through various franchising business websites and newspapers both local and national. Contact Retail Food Group for more information. Small store: 40 m 2-60 m 2 Large store: 60 m m 2 Kiosk: 24m 2-30m 2 *Images are for promotional purposes only. Design and layout of the depicted kiosks and shopfronts are subject to amendments at the complete discretion of the Franchisor 9

10 Investment required FOLLOW YOUR DREAMS AND INVEST IN A DONUT KING AND WE LL MAKE THE REST EASY Store costs range from $280,000 $360,000 (depending on the size of store). Additionally, you will need to provide your own start-up working capital costs, rent, bank guarantee, advisor s fees, insurance and on-going operational costs. Becoming your own boss will be one the best things you ever do and we ll be there to support you every step of the way! We have amazing opportunities available nationwide. Alternatively we can find a site that suits you. NEW STORES The investment range generally for new stores is $280k $360k + GST, including the initial franchise fee.** The investment level varies depending on the size of the site, equipment required and the landlord conditions or contributions CONVERSIONS Many factors will determine the cost of converting an existing business to the Donut King franchise system and as such no price range can be offered in this booklet. Please contact Retail Food Group for more information on converting your existing café to the Donut King franchise system. INTERNATIONAL The price of an international Master Franchise Licence will depend on the size and market potential of the country or region being purchased. Please contact Retail Food Group for more information on international master licences. 10

11 Steps to becoming a franchisee NEW STORE AND NEW SITE PURCHASE PROCESS Once you ve decided on selecting franchise, We are there to support you every step of the way through the application process. STEP 1 INITIAL INTERVIEW You make your initial enquiry and discuss your needs with our Franchise Recruitment Executive who will conduct a phone interview and work towards finding a suitable site that meets your requirements. STEP 2 SUBMIT FRANCHISEE APPLICATION You will be provided with a Franchisee Application for completion. A site specific budget estimate is offered. Having received this information, you are now able to consider finance options. RFG will then assess your application keeping in touch with you along the way. STEP 3 FORMAL OPERATIONAL INTERVIEW You will be invited to take part in a formal operational interview with an RFG rep. This report will be added to your application for approval. You may also wish to consult independent legal and financial specialists for additional advice. We also encourage you to visit existing stores and meet with existing franchisees. finance approval, ensuring that the finance allows for the making of progress payments. STEP 6 FRANCHISE DOCUMENTATION EXECUTED RFG now provides you with the formal franchise grant documentation. You will have sought mandatory independent legal advice (it is also recommended that you seek financial and business advice at this time). You execute and return the franchise grant documentation with all of the requested deposits or progress payments. A cooling off period may prevail. STEP 7 TRAINING Your training at the RFG Academy in Southport, Queensland is undertaken. Staged progress payments commence. During this time, the shop fitter s contract is completed and payment of any outstanding balances is made. STEP 8 YOUR OUTLET OPENS! RFG provide you with ongoing support in aspects of your business including administration, financial management, local marketing, coffee, retail operations and customer service. You will receive regular visits from your local Sales and Performance Manager, as well as being provided with newsletters and other communication pieces. You are now part of the network of franchisees and have access to regular franchise group meetings where you can share ideas, discuss problems and participate in the ongoing development of the franchise system. (The foregoing is a guide only. The application process is dependent on individual circumstances). STEP 4 FINANCIAL STATEMENT SUBMITTED If your suitability is confirmed, we request further information on your financial position and ability to open and operate your franchise. A refundable deposit is required on return of this information. STEP 5 CONDITIONAL FRANCHISE APPROVAL If approved, the RFG Legal Department will forward you a conditional franchise approval letter, this should be signed and returned to RFG. Once this is received, RFG will confirm your training intake. At our cost, you are formally invited to our Gold Coast National Training Academy and Head Office to meet your Franchise support team. You will now have obtained 11

12 Steps to becoming a franchisee ESTABLISHED STORE PURCHASE PROCESS Established Donut King outlets are advertised for sale on the RFG website, as well as through independent business brokers and various franchising websites. STEP 1 You make your initial enquiry to either the current store owner or a business broker. STEP 2 Once you are in a position to progress the sale with the store owner, RFG will provide an application form to you for completion and return. STEP 3 You may wish to consult independent legal and financial specialists for additional advice. We also encourage you to visit existing stores and meet with existing franchisees. STEP 4 RFG will assess your application, keeping in touch with you along the way to ensure all necessary information is provided to both yourself and to RFG. STEP 8 You execute and return the franchise grant documentation. Dependent on the country a cooling off period may prevail between (Step 3) and returning the executed franchise grant documentation. STEP 9 Your training at the RFG Academy in Southport, Queensland commences. STEP 10 You graduate from the RFG Training Academy. STEP 11 Your solicitor and RFG legal counsel arrange settlement. You and the outgoing franchisee conduct a stock take the night before settlement the BDM is available to be present at stock take if required. STEP 12 You start trading in your Donut King outlet! STEP 13 RFG provides you with ongoing support in aspects of your business including administration, financial management, local marketing, coffee, retail operations and customer service. You will receive regular visits from your local Sales and Performance Manager, as well as being provided with newsletters and other communication pieces. You are now part of the network of Donut King franchisees and have access to regular franchise group meetings and conferences, where you can share ideas, discuss problems and participate in the ongoing development of the Donut King franchise system. (The foregoing is a guide only. The application process is dependent on individual circumstances). STORE CONVERSION PURCHASE PROCESS Becoming a franchisee with a multi-brand franchisor offers many significant benefits to existing business owners. Please contact RFG to discuss whether your existing café would be suitable for conversion to the Donut King franchise system. *Information contained within is subject to change at the sole discretion of the franchiser. STEP 5 You will be invited to take part in a formal operational interview with an RFG rep. This report will be added to your application for approval. Your communication continues with the broker or franchisee and RFG regarding the process of your approval. Any finance you are obtaining to complete the purchase must be confirmed and sent to us. STEP 6 The RFG Legal Department will inform you whether your application has been approved or declined, and if approved, a conditional franchise approval letter will be sent to you. After you have obtained legal advice, the conditional franchise approval should be signed and returned to RFG Head Office in Queensland. Once this is received, RFG will confirm your training intake dates. STEP 7 RFG now provides you with the formal franchise grant documentation. We request that you seek mandatory independent legal advice (it is also recommended that you seek financial and business advice at this time). 12

13 What should I do next? Contact RFG to discuss suitable sites in your area on , or rfga@rfg.com.au with your contact details and one of our state based Franchise Recruitment Executives will make contact with you. Attend an information meeting with the Franchise Recruitment Executive. Review all information obtained during the meeting and make a decision on your preferred store/site. Request an application form and disclosure document. Confirm your purchasing ability with your bank and with your accountant. Complete the application and post to RFG once completed. Speak to existing franchisees. Seek business advice.

14 Frequently Asked Questions Q: DO I REQUIRE ANY SPECIAL EXPERIENCE? A: No, although having business experience is always an advantage. We provide comprehensive training for all areas of your new store, which covers theory and practical training at the RFG Academy and in one of our operating stores, plus extensive Coffee (Barista) training. Q: WHAT IS THE TERM OF A FRANCHISE AGREEMENT? A:New franchisees are ordinarily granted a five (5) year initial franchise term together with an option to renew for a further five (5) years. This may vary depending upon the term of the lease applicable to the site. Q: WHAT IS THE TOTAL COST OF ACQUIRING AND OPENING A DONUT KING FRANCHISE? A: A new store can range in price from $280,000 to $360,000 + GST. Q: WHAT DOES THE TOTAL COST INCLUDE? A: It includes a fully fitted-out store and equipment, training, manuals and initial franchise fee but excludes a bank guarantee, working capital and GST. Q: DO I HAVE TO PAY A DEPOSIT? IF SO, WHEN AND UNDER WHAT CIRCUMSTANCES WOULD I LOSE MY DEPOSIT OR ANY PART OF IT? A: $3,300 deposit is payable upon application. These monies, less the franchisor s reasonable expenses (to a maximum of $300), are refundable if the application is not approved. Q: WHAT ARE THE ONGOING FEES OF THE FRANCHISE? A: A franchise service fee of 7% (plus GST) of your total gross sales is payable in connection with the Donut King franchise system. A marketing contribution equal to 3% (plus GST) of your total gross sales is also payable into an independently audited marketing fund. This fund is used to collectively promote increased customer awareness and provide each store with promotional material and ongoing marketing services to facilitate constant attraction of new customers, increased average dollar sales and the frequency of purchase. Q:HOW MUCH PROFIT WILL I MAKE? A: This depends largely on several factors such as the value of wages paid, cost of goods and other operating costs and generally how you operate your business. We have identified certain key performance indicators which are monitored in order to maximise your profitability. Q:WHO SELECTS THE SITE? A: Donut King will select the site and secure the lease. Ultimately, however, you must satisfy yourself as to the suitability of the premises. Q: WHAT INITIAL FRANCHISE FEES ARE PAYABLE? A: $50,000 (plus GST) initial franchise fee $13,750 (plus GST) training fee $3,000 (plus GST) initial marketing fee The Franchisor s Disclosure Document provides full details of all fees and costs in connection with the establishment of a Donut King franchise. Q: DO I NEED ANY OTHER MONEY TO START? A:It is recommended that you have money available to be used as working capital and as a minimum we would expect you to have $16,500. For example, this will cover costs such as accounting and legal fees, business and public liability insurance and your first day s trading stock and packaging. You will also need to budget for accommodation and living away from home expenses while at our training academy in Queensland. For a more precise list of costs associated with the acquisition of the franchise, refer to the Franchisor s Disclosure Document. 14

15 Frequently Asked Questions Q: WHAT SERVICES ARE INCLUDED IN RETURN FOR THE FRANCHISE AND MARKETING FEES? A: The services you will receive cover a wide range of management assistance and operational services, including: On-going operational training, tools and support Marketing support including national advertising, public relations campaigns, media selection and national media placement Stringent quality control standards A Sales and Performance Manager to assist franchisees with all aspects of daily operations to ensure appropriate performance levels and quality standards. Q: HAVE YOU GOT ANY SITES READY TO GO? A: Yes. Refer to the Franchises Available section of our website for the complete state based listing of new and resale sites available. Q: WHY SHOULD I PURCHASE A DONUT KING FRANCHISE? A: Donut King has been serving the Donut King Cinnamon Donut for over 30 years, and today Donut King is much, much more than simply just a donut shop. Generations have grown up sharing the Donut King experience; it s a fun place for the young and the young at heart. Franchisees are provided with comprehensive training at our purpose built Training Academy on the Gold Coast with dedicated, experienced and qualified trainers Donut King is a proven franchise operating system Franchisees are provided with field training & ongoing support The Donut King marketing team are focused on national integrated advertising and promotional campaigns Donut King is a cash business offering minimal risk of bad debt Donut King franchisees have the opportunity to become a successful business owner. Q: ARE FRANCHISEES EXPECTED TO ACTIVELY WORK IN STORE? A: Yes. Franchisees are expected to work in store. This is an important factor in the success of our stores. 15

16 Donut hesitate to contact us! If you would like to know more about your Donut King franchise opportunity, have a question or two about anything in this document, or would just like a friendly chat, please get in touch! We would love to hear from you and it would be our pleasure to continue this conversation. Start your journey with Donut King DISCLAIMER: Existing and potential franchisees should note the Average Weekly Sales (AWS) and Average Transaction Value (ATV) for FY2010, FY2009 and FY2008 indicated above is an historical amount provided as a guide only. All AWS and ATV figures are calculated on the basis of source data reported to the Franchisor by franchisees. The Franchisor and its Associates: i) have not audited or verified the source data upon which AWS and ATV are calculated and therefore give no warranty or guarantee as to the accuracy or reliability of the AWS and ATV figures noted herein; ii) do not represent or warrant that the AWS and ATV figures noted herein are indicative of any particular existing or proposed Donut King; iii) advise that the AWS and ATV figures noted herein do not constitute, and should not be construed as constituting, an estimate or guarantee in connection with the historical or potential sales or turnover of any existing or proposed Donut King outlet or Donut King outlets generally. Ultimately, existing and potential franchisees must satisfy themselves as to the historical and potential turnover of any existing or proposed Donut King outlet on the basis of their own investigations and independent advice. The Franchisor recommends that all existing and potential franchisees obtain independent financial and business advice in connection with this issue.*information contained within is subject to change at the sole discretion of the franchisor. Fees and charges are a guide only and may be subject to change. 16