BIG AL`S FRANCHISE PROSPECTUS BIG AL`S FRANCHISE P O

BIG AL’S FRANCHISE PROSPECTUS
BIG AL’S FRANCHISE
P O BOX 11272
HATFIELD
0028
[email protected]
www.bigals.co.za
0861 244 257
082 573 9305 (Edward)
Table of Contents
1
BACK GROUND .........................................................................................1
2
PRODUCT OFFERING ................................................................................2
3
FRANCHISE PACKAGE ...............................................................................3
4
FRANCHISE FEES......................................................................................4
5
MARKET INFORMATION, EXPOSURE AND PROMOTIONAL MATERIAL ..........5
6
STAFF ......................................................................................................9
7
SUPPLIERS .............................................................................................10
8
MENU.....................................................................................................11
9
GETTING STARTED.................................................................................16
10 PROSPECTIVE FRANCHISEE PROFILE.......................................................17
11 REFERENCES ..........................................................................................19
Big Al’s
1
Prospectus
BACK GROUND
Big Al’s is a fast-food concept that specializes in Hamburgers, Fish and Chicken with a
menu that includes items such as Chips, Toasted Rolls and a variety of Sausages. We
also cater for the health-conscious consumer with our delicious Salads and Health Roll
Range.
Big Al’s was established in 1989 by Albert Cross and was run as a family concern for
fifteen years. The success of the Famous Big Al’s menu resulted in the opening of five
stores in the Greater Pretoria area.
The Big Al’s recipe for success is based on three main principals: SERVICE, SPEED and
SATISFACTION.
SERVICE: The customer is always king at Big Al’s
SPEED: We put the “fast” into fast food
SATISFACTION: Great food at great prices
These three principals accompanied by our tried and tested recipes have seen the
growth of our customer base and the demand for more Big Al outlets.
Page 1
Big Al’s
2
Prospectus
PRODUCT OFFERING
The Big Al’s menu consists the following:
A full range of Hamburgers
Hake
Fish Cakes
Russian, Frankfurter, Cheese Griller and Wiener Sausages
Rotisserie Chickens
Chips
Our Light Meals comprise of:
Ham & Cheese Sub Roll
Bacon & Cheese Sub Roll
Chicken Sub Roll
Mediterranean Sub Roll
(These are available on White, Whole Wheat sub rolls or as Toasted Rolls)
Russian, Frankfurter, Cheese Griller and Wiener Hot-Dogs
Greek Salad
Coleslaw Salad
Chicken Salad
We have a variety of Combo Meals available
Kiddies Packs, accompanied by a toy, juice and a “mini meal”
Page 2
Big Al’s
3
Prospectus
FRANCHISE PACKAGE
The Big Al’s Franchise is aimed at the middle-income market with the emphasis being on
an Affordable, Profitable and complete Turn Key Business that will benefit not only the
Franchisee but assist in uplifting those in their employ.
Our store size begins at an average of sixty square meters for the standard Big Al’s
Store and can be adapted to suit the requirements of a fully equipped Sit Down
establishment.
The complete (TURNKEY) Big Al’s Franchise package encapsulates the
following:
Full Shop Design and Fitting:
A Modern Fresh New Look Concept and Shop Fit
Internal and External Signage
Fully Equipped and Installed Kitchen
Staff Recruitment and Training:
Food Preparation and Service
Stock Ordering and Control
Information Systems and Management Methods
Information Technology:
Procurement, Installation and Configuration of Point Of Sale (POS) System
Back Office System, LAN and Printer
Starting Stock
Staff Uniforms
Initial Local Marketing Campaign
Comprehensive Operation Manuals
Favourable Supplier Network
24/7 Support
Page 3
Big Al’s
4
Prospectus
FRANCHISE FEES
A Turnkey store of between 60m² - 110m² will cost in the region of R650, 000.00 (excl
VAT) depending on store size, layout and location. A 15% deposit is payable on
conclusion of the Franchise Agreement. The remaining amount will be payable as soon
as a suitable premise has been identified and the lease agreement concluded.
In addition to the above, Franchisees should have in the region of R50, 000.00 available
as starting capital. This would cover instances such as staff salaries during training,
rental and utilities deposits (amongst others).
4.1
MONTHLY ROYALTY/ MANAGEMENT FEE
The monthly Management fee shall be equivalent to 3.5 % of Turn Over (excl. VAT).
4.2
CONTRIBUTION TO MONTHLY MARKETING FEE
The monthly contribution to a Franchise Marketing fee will be set at 1 % of Turn
Over (excl VAT).
STORE PERFORMANCE
•
A store with a turnover of R90,000.00 per month operates at an average net
profit between 15% – 20% : (In the region of R13,500.00 – R18,000.00 per
month)*
•
A store with a turnover of R100,000.00 per month operates at an average net
profit between 18% – 25% : (In the region of R18,000.00 – R25,000.00 per
month)*
•
A store with a turnover of R120,000.00 per month operates at an average net
profit between 25% – 35% : (In the region of R30,000.00 – R42,000.00 per
month)*
* Store performances vary. The above based on performances of existing Big Al’s stores in the Pretoria East area.
Page 4
Big Al’s
5
5.1
Prospectus
MARKET INFORMATION, EXPOSURE AND PROMOTIONAL MATERIAL
Definition of the Industry
The fast-food industry is characterised by fast, convenient and affordable meals.
Trends in the industry are an increased convenience through drive-through and
home deliveries.
5.2
The Market
The earlier mentioned preferred locations are showing a phenomenal growth in the
family unit and therefore a growth in expendable income. We find that there is no
definite seasonal change; however, there is a slight decline of sales over the
December/January period. This is primarily because our target market is away on
holiday over this time.
Big Al’s has seen that customer loyalty is very high and the appeal of the product is
found in each generation. Brand loyalty has extended to the supply of schools, work
functions and ambassadorial functions as well as social events.
5.3
Competition
Competition is great within the fast food industry, but due to our price positioning
and our exceptional value for money, we are able to undercut our competitors.
Our biggest competitive advantage is our “family run” concept, all our staff is made
to feel as ”part of the family” and therefore have a vested interest in the company,
meaning that service is always rendered with a personal touch and at the highest
level.
Page 5
Big Al’s
5.4
Prospectus
Promotion and Advertising
Local newspapers
City-council approved advertising boards
Sponsorships
Radio promotions
Prize sponsorships
Mobile advertising, signboards, car magnets
In store marketing
5.5
Pricing
Increases due to market-related increases and only when necessary.
5.6
Distribution
The Big Al’s Main Kitchen and designated suppliers provide all necessary stock to the
stores.
5.7
Geographic Penetration
Big Al’s will be expanding into markets throughout Southern Africa.
Page 6
Big Al’s
5.8
Prospectus
Sample Promotional Material
5.9
New Store Get-up and Branding
Fig 1.1: Store Front-end showing Get-up (Equestria Store, Pretoria)
Page 7
Big Al’s
Prospectus
Fig 1.2: Store Front showing Signage (Equestria Store, Pretoria)
Page 8
Big Al’s
6
Prospectus
STAFF
6.1 Staff
The average Big Al store will have the following personnel
Big Al’s Store
Managers (optional)
1
Cashiers
1-3
Counter-hands (kitchen)
6
Training
The Big Al’s Head Office trains all staff members. Managers/ Cashiers are taught basic
bookkeeping systems, quality control, customer relations and various other important
issues.
The kitchen staff are trained on site regarding all aspects of food preparation,
production, hygiene and complete store operations.
Page 9
Big Al’s
7
Prospectus
SUPPLIERS
Big Al’s has a registered list of suppliers and as we buy in bulk we are able to pass these
discounts over to you.
Fresh products are ordered on a daily basis, whereas the non-perishables are ordered on
an as-and-when-needed basis.
Full Product and Supplier list available in the Big Al’s Operations Manual.
Page 10
Big Al’s
8
Prospectus
MENU
Page 11
Big Al’s
Prospectus
Page 12
Big Al’s
Prospectus
Page 13
Big Al’s
Prospectus
Page 14
Big Al’s
Prospectus
Page 15
Big Al’s
9
Prospectus
GETTING STARTED
1. REVIEW THE BIG AL’S FRANCHISE PROSPECTUS
2. RECEIVE THE BIG AL’S FRANCHISE AGREEMENT AND FRANCHISE
PACK (you need to provide us with your full contact details)
3. MEET WITH BIG AL’S GROUP MANAGEMENT
4. MAKE AN INFORMED DECISION
5. ACCEPTANCE AND SIGNATURE OF THE BIG AL’S FRANCHISE
AGREEMENT
6. STORE LOCATION PROCESS BEGINS
7. CONCLUSION OF LEASE AGREEMENT
8. STORE CONSTRUCTION BEGINS
9. STAFF TRAINING
10. LOCALISED MARKETING CAMPAIGN
11. OCCUPATION OF STORE AND START TRADING
Page 16
Big Al’s
10
Prospectus
PROSPECTIVE FRANCHISEE PROFILE
The Big Al’s Group seeks franchisees that meet the following profile:
A: Background requirements
The franchisee should be credit worthy and have available financial resources
(The franchisee must be able to personally fund at least 30% of the initial setup
costs.);
The franchisee should be financially sound;
No formal qualification is required although, in some instances, this may be an
advantage.
B: Experience
A franchisee with managerial experience and/or having been self employed is
ideal;
The franchisee should be computer literate;
The franchisee should be a “hands on” person who can pro-actively market his
business, selling himself and the Big Al’s concept. CRITICAL: The franchisee must
be an “owner-operator”.
C: Personal Attributes
The franchisee needs to be an energetic self-starter with a professional approach
to business.
The franchisee must be people orientated with excellent interpersonal and
communication skills.
He/She must have a love for working with people and must be capable of
gaining and maintaining rapport with his customer base through being friendly,
patient and tolerant, yet firm.
He must be able to manage others effectively, have above average motivational
skills and create the personalized friendly and fun environment.
The franchisee needs to share an alignment with the Big Al’s values.
The franchisee should be of respectable appearance and of good physical health.
The franchisee must demonstrate entrepreneurial skills; yet also show the ability
and willingness to be a team player.
The franchisee should be enthusiastic, dynamic and self-motivated. He/She must
be a “go-getter” with a strong will to succeed.
Page 17
Big Al’s
Prospectus
The franchisee must consider his business as a long-term investment. He/She
must show commitment and have a loyal and consistent character.
By the nature of our business the franchisee needs to have stamina and strength
to commit to the hard work and long hours needed when operating a Big Al’s
franchise
Page 18
Big Al’s
11
Prospectus
REFERENCES
Industry Bodies
Franchise Association of South Africa (FASA)
In process of application.
Bankers and Banking Affiliations
Standard Bank:
Branch: Franchise Desk
Contact Person: Anthony Greyling (Manager: Franchising)
Contact Number: 011 636 1959
Email: [email protected]
Web: www.standardbank.co.za
ABSA Bank:
Branch: Franchise Desk
Contact Person: Kobus Snyman (Regional Specialist: Franchising)
Contact Number: 011 290 5645
Email: [email protected]
Web: www.ABSA.co.za
First National Bank:
Branch: Franchise Desk
Contact Person: Ashith Sodha (Regional Specialist: Franchising)
Contact Number: 011 371 3280
Email: [email protected]
Web: www.fnb.co.za
Accountants:
Labuschagne & Co
Contact Person: Jannie Labuschagne
Address: 193 Zambezi Avenue,Sinnoville, 0182, Pretoria
Email: [email protected]
Tel: 012 543 1314
Fax: 012 543 1232
Lawyers:
Bowman Gilfillan Inc (Intellectual Property and Franchising)
Contact Person: Marius Gerber
Address: 165 West Street, Sandton
Tel: 011 669 9000
Fax: 011 669 9001
Email: [email protected]
Web: www.bowman.co.za
Page 19