barburrito restaurants inc. franchise information

 BARBURRITO RESTAURANTS INC.
FRANCHISE INFORMATION PACKAGE
LAST UPDATE: MARCH 1, 2013
BARBURRITO FRANCHISE INFORMATION
Thank you for your interest in BarBurrito Fresh Mexican Grill. The following is specific and relevant information about
the BarBurrito system, costs of acquiring a franchise, and our comprehensive franchisee support systems. As you read
on, you will see why so many people like you are excited about this opportunity and what it can mean for your future.
THE F OO D
The BarBurrito franchise system places a focus on making gourmet Mexican food
in a friendly, quick service setting. You will be proud to serve our products. Our
food is so great, in fact, that some of our customers have become franchise owners
simply because they believe in the product.
Here’s what our customers say they like about our food:
• Fast, healthy food. Menu selections that meet the needs of the health
conscious, those with religious or dietary food specifications (i.e., Halal,
Kosher, Vegetarian, Vegan), and those who are just looking for great tasting
food! All of that ensures no customer is left out, and benefits your bottom
line.
• Homemade sauces that make great burritos taste even better.
• Fresh veggies and real Cheddar and Monterrey Jack cheese - not that
processed stuff.
•
Fresh Meats. Our meats arrive fresh several times a week, and are never frozen. They get marinated for a
minimum of 24 hours prior to cooking. No freezers, no microwaves. Now how many other franchise concepts can
claim that?
•
Made to order. Each item is customized just the way our customers want.
•
Variety of toppings. The selection of tasty toppings round out the perfect burrito.
•
It’s not a burrito if it’s not a BarBurrito!
Think about your market area and the consumers who live there. Wouldn’t the quality and variety of the products appeal
to those consumers?
THE S UPPO R T
BarBurrito is proud of the excellent support systems available to our franchisees. Ongoing support is provided before and
after you open your store. In fact, we provide support and guidance every step of the way, from your initial inquiry to the
day you open your store, and during the course of business operations on an ongoing basis. Our real estate depart- ment
will help you choose a location, and negotiate the best possible lease terms. Our business development team will arrange
the construction, purchase equipment, and train you and your staff. Our marketing department will assist you with
everything from signage to our own unique grand-opening festivities, to ongoing advertising for your store.
Here’s how it works:
Before You Open
As soon as you join our team, we begin working with you to help you get started.
•
Site selection. Based on our own formula for assessing the viability of a location, and your chosen area, we
will begin analyzing potential sites. Among other things, we look at; social demographics, household counts and
income, traffic studies, competition, location accessibility and parking, rent cost. The latter refers to a formula
where we divide the rental rate for the location by our sales projections. That number has to come to a certain
percentage, or we will simply not recommend the site to you. Of course, you are welcome and encouraged to do
your own location searches, and bring to our attention any sites you believe are right for a BarBurrito location.
In the end, however, both we and you must agree on the site.
•
Restaurant design and construction. We will construct your store for you in accordance with our new design
criteria, working with one of the top designers in the city.
•
Equipment ordering. We help you order your equipment package for timely delivery, and arrange financing, if
necessary.
•
Licenses & Permits. Because BarBurrito believes in providing full support for its franchisees, we will guide you
through the sometimes confusing process of obtaining all permits and licenses required by the various governmental agencies, including, if applicable, your liquor license.
•
Training. This is where BarBurrito is really different. You will take part in an intensive training program for a
minimum of four weeks that will guide you through everything you need to know about the BarBurrito system, in
addition to comprehensive training in business management, including payroll, bookkeeping, marketing
strategies, and more. We will show you how you can save money on professional fees by doing your own payroll
inputting, daily bookkeeping, and cost controls. We will show you how to control overhead expenditures, while
implementing strategies to deal with a changing economy and seasonal variations in store sales.
After You Open
Once your restaurant opens, we have systems in place to help you operate your business effectively.
•
Operations Manual. Our manual covers a full range of topics and procedures, from store operations and staff
management, to recipes, to marketing strategies.
•
Field Support. Each location will be assisted by a field representative for that particular region to help you get
started and provide ongoing operations support and guidance. The representative’s main job is to help you
run a great restaurant! From advising you on new products or procedures, to assistance in controlling costs, to
marketing initiatives, to answering each and every inquiry you may have, the field representative is there for you
whenever you call. We believe in an open door policy, so make sure to take advantage of it!
•
Marketing. Our marketing program is designed to benefit each individual store, in addition to the BarBurrito
brand in general. Our marketing department sends hundreds of thousands of flyers each year, both through
Canada Post and door to door. We promote chain-wide and individual store specials, catering services, and
seasonal promotions to businesses and private residences alike. Marketing support is available free of charge to
franchisees wising to produce local and regional initiatives. Chain wide marketing initiatives are initiated and
implemented by us and paid for through the advertising fund each franchisee contributes into.
•
Research and development. Our product development team continually strives to make our excellent food even
better. And your suggestions are always welcome, because that’s what partners do; listen to each other.
THE SYSTEM
Over the years, we have painstakingly put together an operating system that will be easy to use, yet flexible enough to
confront any unforeseen challenges. Our system was designed first and foremost to communicate the essence of our
operations so that you, the franchisee, can execute it flawlessly, and secondly, to control overhead. We believe the key to
success in this business is to be able to sustain profit margins in the face of a changing economy and seasonal variations
in store sales. The ability to do that may be the single most important tool a franchisee can master, and we will be right
there by your side to see that you do.
YOUR I N V E S T M E N T
Keeping costs low
By Industry Standards, The initial investment in a BarBurrito franchise is low. Here are some of the
reasons why:
•
Franchise fee. The BarBurrito franchise fee is exceptionally low compared to others in our industry at only
$15,000. The franchise fee is $7,500 for any additional franchises should you be granted the right to
become a multi-unit operator.
•
Compact facilities. The operation is simple, efficient and flexible, often requiring only 1,000 Square feet of
space, minimizing the construction expenses.
•
Flexible decor. The flexible decor further minimizes leasehold improvements.
•
Royalty fees. Industry-low royalty fees at only 5%.
The following chart will give you an idea of what costs can be incurred when opening your own
BarBurrito location. Note the two different investment levels, depending on several factors including
the size of the location and its physical condition.
ESTIMATED COSTS
$$$$$$$$
Lower Cost Higher Cost Method of
Payment
Initial Franchise Fee
Rent Deposits
$15,000
$8,000
Lump Sum
$15,000
$15,000
Lump sum
When Due
Comments
50% When you sign the
Franchise Agreement, 50% when you
sign the lease/sublease
When you sign the offer to lease
Paid to Us
Typically First and Last
Leasehold Improvements
$57,000
$122,000
As incurred
Pro rata during construction
Renovations
Equipment Package (note 1)
$29,500
$35,000
Lump sum
When you order, balance on delivery
Leasing options available
Kitchen Supplies & Utensils
$1,200
$2,000
Lump sum
When you order, balance on delivery
Paid to Vendor
Interior and Exterior Signage
$5,000
$10,000
Lump sum
When you order, balance on delivery
Paid to Vendor
Opening Inventory
$2,000
$3,500
Lump sum
On delivery
Paid to Vendor
Professional Services
$750
$2,000
As Incurred
As required
If required by you
Design & Engineering Fees
$6,000
$12,000
As incurred
Before Opening
Drawings
Training Expenses (note 2)
(if applicable)
$1,350
$2,250
As incurred
During Training
Staff wages (if
applicable), cost of food
Opening Marketing Material
$3,000
$5,000
Lump Sum
Around Opening
Menus, Grand Opening
Advertising
POS System
$0
$0
Free
N/A
Included with Payment
Processing Account
Miscellaneous Expenses
(Business & Liquor
licenses & Permits,
utility deposits,
Insurance,
Uniforms, Phone &
Security System)
$3,100
$8,400
As incurred
As required, if Applicable. For example,
you may choose not to install a security
system, or you may not require a phone
system in most cases. Depending on
your credit history, you may not be
required to pay deposits for utility
accounts, etc.
Various governmental
agencies, utility companies, insurance
companies, other
vendors
Working Capital
$10,000
$20,000
As Incurred
As required
When and if required
TotalEstimatedCost
$141,900
$252,150
And Events (if applicable)
All figures are estimates only. Actual costs will vary for each franchise and each location depending upon several factors.
50% OF THE TOTAL INVESTMENTS ($70,000 TO $125,000) MUST BE AVAILABLE IN UNENCUMBERED CASH.
Note 1. The equipment package can be purchased through our approved equipment suppliers/distributors. You may use
another supplier, provided we approve it beforehand. In addition, you have the option of financing your equipment
purchases, significantly reducing the amount of capital you will have to come up with initially. We work with several such
companies, but you may use different ones, provided we approve them beforehand. Financing your equipment will
reduce the initial investment , but will add to your overhead as you will be required to make monthly payments for
approximately 36 months, at which point the equipment is paid off and belongs to you. We can discuss these options
during our meetings with you.
Note 2. You will have noticed that some of the listed expenses, specifically Training, are stated as “if applicable”. In fact,
if you live in the Greater Toronto Area, they most likely will not be applicable to you. Training is completely free of charge
to you or any staff members you hire during the period. However, you may be required to pay some wages for your staff
during training, and you will incur some costs relating to food during the training period, if done at your store. All training
at our corporate location is completely free of charge. Once you open your location, one of our managers will be onsite
with you, working alongside yourself and your staff for a minimum of 1 week, in addition to the training prior to opening.
RESTAURANT PERFORMANCE
No one can guarantee your store performance (if they do, beware!). This is because the performance of any restaurant
depends on a multitude of factors. The most important factors for the performance of your restaurant are:
•
The location of the restaurant
•
The rent for the location
•
Your involvement in the day-to-day operations, and how well you manage your store.
Since we don’t know where your restaurant will be, or how well you will run it, we can’t predict your specific results. We
encourage you to visit our existing stores, speak to the franchisees, and see for yourself how well they do.
CONSIDER WHAT BAR B U R R I T O HAS TO OFFER YOU!
•
The opportunity to run your own business at reasonable turn-key costs with the assistance of knowledgeable
company professionals
•
Equity for your future
•
Negotiated supply agreements
•
Comprehensive training programs, including practical in-store training, and business management tools
•
Site selection and lease negotiation
•
Field support team that is always available to you
•
Effective and targeted advertising to benefit your store and the BarBurrito brand
•
A great tasting product
•
Access to the best locations
•
The opportunity to get in on one of the hottest fast food concept today!
THE N EX T S T E P S
1. Complete an Application Form
The application form will be reviewed. This information will be kept strictly confidential. Upon preliminary approval, you will
be notified of our interest to meet with you. Each partner must fill out a separate application. An application form is
available on our website, at www.Barburrito.ca, or you may request an application form by sending an email to
[email protected]
2. Visit Us:
A franchise sales representative will schedule an interview with you. During this visit, you will receive an in-depth
introduction to the BarBurrito franchise system, and have the opportunity to ask all of your questions.
3. Receive a BarBurrito Disclosure Document:
The disclosure document contains valuable information to help you analyze our franchise system. You will have over 2
weeks to review it and discuss it with your professional advisors.
4. Franchise Fee Deposit & Approval:
If you are approved, upon a mutual decision to proceed we will prepare a franchise agreement for you to sign. At that
time, 50% of the franchise fee is due and payable, with the balance due upon the signing of the Lease/Sublease.
5. Site Selection and Orientation:
Once we have decided on a site we will work towards negotiating the lease, building the restaurant and will commence
your training program. We will orient you on all of the steps involved in opening your restaurant, including our grand
opening procedures. We will be there every step of the way to ensure a seamless process.
We look forward to hearing from you!