franchise information package - i3edia

FRANCHISE INFORMATION PACKAGE
Table of
CONTENTS
4
About Us
5
Our Mission
6
Our History – Our Exciting Journey
7
Are we the Right Business for you?
8
KEY MILESTONES
9
TRAINING PROVIDED
10
SUPPORT OFFERED
11
APPROXIMATE INVESTMENT AND FEES
12
FAQs
15
Next Steps
Oven to Table
About Us
Every day, in every bakery, COBS Bread bakers
create a range of traditional and gourmet breads.
All products are baked from scratch, fresh daily on
the premises. At the end of each day, most unsold
products are donated to local charities.
COBS Bread bakeries are distinctive in appearance,
branding, product quality and customer experience.
We are committed to establishing and maintaining
mutually beneficial and rewarding relationships with
all our business partners – employees, franchisees,
suppliers, and customers.
4
Our
Mission
Real Bread, Real People, Real Delight
The COBS Bread brand has been built on our commitment to the
quality of our product, the development of our people and the delight
the combination of these two elements brings to our customers.
5
Our History
Our Exciting
Journey
COBS Bread is part of one of the
most successful franchise baker y
networks in the world - Bakers
Delight. An Australian owned
company, Bakers Delight has
been in operation for more than
30 years, with more than 700
bakeries across Australia, New
Zealand, and Canada.
Bakers Delight (trading as COBS
Bread in Canada), Australia
and New Zealand’s largest retail
bakery business was established
in 1980 as a single baker y on
Glenferrie Road in the Melbourne
suburb of Hawthorn. The founders
of that baker y, fourth generation
baker Roger Gillespie and his
wife Lesley have since grown the
company into one of Australia’s
most successful and celebrated
retail operations.
COBS Bread was launched in
Canada on November 13, 2003,
with the first location in Edgemont
Village in North Vancouver. The
family owned business has since
grown close to 80 locations over
four provinces.
6
Are we the Right Business for you?
We see our growth through franchising and are thus seeking the right business partners.
Selection of new franchisees is based on criteria established to maintain the COBS Bread
standards of excellence and ensure the right fit for both parties.
Qualities we are seeking include:
Ask yourself whether
you’re ready to:
Demonstrated team management
and strong leadership skills
Follow the COBS Bread system
Commitment to being hands on
within the business
Work in a physically
demanding environment
Attitude of “doing whatever it takes”
to make the business a success
Be active in sharing your success
and failures to the network
Good business acumen
Get involved with your local community
7
Key Milestones
The COBS Bread recruitment process is designed to assess your suitability for becoming a
Franchise Operator and it is also your opportunity to determine if we are the right fit for
you. It involves the following:
•
Submitting an online inquiry
•
Speaking with our Franchise Manager
•
Attend a Skype interview with our Franchise Manager
•
If pre-approved, attend a face-to-face interview with one of our Area Managers
•
If a possible fit is determined, attend a 2 day Bakery and Sales Orientation
at a local bakery
•
Conduct your own due diligence with existing franchisees
•
Review of candidates qualifications and demonstration of talent during
Orientation will be conducted
If you have been successful with the recruitment process and you are excited and eager to
move forward, you will be “approved for training” and the next step is to commence the
training program
8
•
Successfully complete the training program
•
Purchase your bakery (see Approximate Investment and Fees)
Training Provided
The COBS Bread training program is designed to provide Franchise Operators the tools to
operate their business successfully. It is competency based and generally takes 12-16 weeks
to complete.
The program introduces you to all aspects of running a bakery and covers:
•
Operational management – including baking skills, product knowledge and
handling and production management.
•
Financial management – including purchasing and inventory control
•
Business management – including marketing and promotions
•
People management – including bakery staff development, team training and
customer service
The program is completed on-the-job within an allocated training bakery and includes
online training modules, focused one-on-one training sessions and dedicated courses.
Training bakeries are selected from the existing network based on the location of the
trainee. You will receive training as well as ongoing mentoring and support from a current
bakery franchisee.
Trainees are required to financially support themselves during the training program.
The training program is overseen by a COBS Bread training consultant who is available for
additional support throughout the entire program.
9
Support Offered
COBS Bread offers ‘hands-on’ support and proven business procedures and systems to
assist in managing your business to success.
These systems and policies are continually enhanced to provide franchisees with
streamlined, relevant and timely support in a range of areas.
Marketing
Operations
Strategic marketing support in the areas of
advertising, media, design, product pricing,
public relations, merchandising, local
marketing and market research.
Provide ongoing support and guidance
for effective business management.
Training
Franchisee training program conducted
at one of our training bakeries during a
16 week period. Additional training and
development provided on an ongoing basis
when the need arises.
Locating viable precincts and negotiating
leases directly with landlords.
Purchasing
The necessary economies of scale in place
to offer group purchasing arrangements
at superior pricing and service.
Finance
Point of Sale
Financial assistance including rostering and
payroll systems, disclosure of group reports
and negotiating bakery liability insurance
through group coverage.
Cash flow, reporting and customer
loyalty programs.
Human Resources
Our systems drive best practices and
policies, including information in the areas
of employee relations and other relevant
legislation. At the discretion of the franchise
owner there is an option to take part in the
established benefits program.
10
Property
IT Department
Offer assistance relating to hardware,
software, general administration
and requests.
Network
Providing opportunities to network with
other franchisees and benchmark results
provides an invaluable support system.
Approximate Investment and Fees
When a candidate has been “approved for training”, a decision is required on the bakery
to be purchased. There are opportunities to purchase new bakeries or existing bakeries.
The key will be to match Franchise Operators with a suitable location.
COBS Bread will provide assistance in identifying a suitable bakery, outline the purchase
process and commence the legal settlement process.
The following outlines the approximate investment costs:
N ew
Franchise Purchase Fee
$25,000
Training Fee
$6,500
Bakery Establishment Costs
$475,000 - $595,000
E xisting
Training Fee
$6,500
Approximate Purchase Price
$300,000 - $1,000,000
on- going fees
Royalty Fees
7%
Advertising and marketing
3%
11
Frequently Asked
Questions
Do I need to be a baker or do
I need any previous baking
experience?
No. Our training program covers all
aspects of the business including baking.
Successful franchisees come from many
different career backgrounds.
What is the term of the
agreement and initial fees?
The franchise agreement is a ten year term.
Initial fees equate to $25,000 (equivalent to
$2,500 per year).
Will COBS Bread assist
with financing?
It is the franchisee’s responsibility
to secure financing. We expect all
applicants to discuss financing with their
financial advisor or financial institution.
However, we have established franchise
financial packages with several major
Canadian banks.
12
Am I able to choose
my own location?
What are the typical
hours of operations?
There are new and existing location
opportunities available for purchase and it
is our goal to match the Franchise Operator
with the most appropriate location.
As we expand across Canada, our
experienced brand development team
continues to provide new location
opportunities. They undertake the site
selection process, secure the real estate,
provide and install equipment and
carry out the construction and leasehold
improvements on all new locations.
Store trading hours are typically from
7am-7pm; however, because our products
are baked from scratch daily, the opening
shift can start as early as 1am.
Can I purchase multiple
COBS Bread locations?
COBS Bread currently has Franchise
Operators who own and operate multiple
locations. Typically, following the franchisees
first year of operation, ensuring that the initial
bakery has a successful team in place and that
the franchisee is financially capable, COBS
would consider granting an additional bakery.
What is the average size
of a COBS Bread retail store?
COBS Bread locations typically range
between 900 – 1100 square feet.
Does the Franchise Agreement
include any trade area/territory
protection?
COBS Bread does not offer any territory
protection but it is in our best interest to
ensure that all bakeries are successful.
The COBS Bread team will determine the
optimal locations to open new sites.
How does COBS Bread spend the
3% marketing and advertising
fee collected?
The marketing and advertising fund is
allocated into three categories (examples
of different initiatives are provided below):
a) National – campaign kits, direct mail,
public relations
b) Regional – resources that benefit three
or more bakeries including direct mail,
mass sampling, and large events
c) Local – an equal dollar amount is
allocated to each bakery to spend on
initiatives such as donations, sampling,
gourmet tastings, and community events.
13
What are the staffing
requirements?
Each bakery is typically made up of a
Franchise Operator, Production Leader,
Sales Leader and baking team. The number
of staff per bakery will range depending on
the individual needs and the number of part
time and full time employees.
How long does the process take?
It is our experience that from the time of
application to the time that the Franchise
Operator opens their bakery or purchases
an existing site; the process usually takes
between 4 to 6 month – which includes the
16 week training program. Please note that
this time can vary significantly if suitable
real estate is unavailable.
Does COBS Bread allow
Franchise partnerships or
Outside Investors?
A partnership can only consist of the
franchisee and their respective spouse or
common law partner. No other partnerships
will be granted.
Is COBS Bread a member of the
Canadian Franchise Association?
Yes, we have been a member since 2008.
Additionally, we were awarded the Bronze
Award in recognition of excellence in
franchisor/franchisee relationships in the
category of Traditional Franchises New/
Emerging by the Canadian Franchise
Association in 2010 & 2012. We were also
awarded the Franchisee Choice Designation
in 2011, 2012, 2013 and 2014 by the
Association.
14
Next Steps
Excited to join the COBS Bread Family?...
We are sure that this document will raise a
number of questions and we are excited about
working with you during this due diligence
stage in order to provide the answers needed
for you to make an informed decision.
Please visit www.cobsbread.com/Franchising/
for further details and to apply online.
Thank you for your interest and we look
for ward to receiving your completed
application.
For additional
information
please contact:
Linda Kawasaki
Franchise Manager
844-838-2627
[email protected]
15