Baroli Caffe

		FRANCHISE INFO	Becoming a Franchisee Question & Answers Franchise Application

		Question & Answers 1. What kind of assistance can I expect? 2. What is the initial Franchise Fee? 3. How much is the on-going Royalty Fee? 4. How much is the Advertising Fee? 5. What is the cost of opening a Baroli Caffè Franchise? 6. How do I finance the purchase of a Franchise? 7. How much money can a Franchisee expect to earn? 8. What is the initial term of the Franchise Agreement? 9. Is the Franchisee required to purchase equipment, supplies or ingredients directly from Baroli Caffè? 10. Does Baroli Caffè assist Franchisees in acquiring the various permits and licenses required for the opening and running of the restaurant? 11. Once the Franchise Agreement is signed, how much time elapses before the restaurant is operational? 12. Is it possible for several partners to acquire a single Baroli Caffè? 13. Must all partners dedicate themselves to the full-time management of the restaurant? 14. Can a Franchisee own more than one Franchise? 15. May the Franchise be sold at any time? Q. What kind of assistance can I expect? >back to top A. Baroli Caffè provides a complete turn-key package, which includes: Location – A location selected on the basis of Market Analysis by Baroli Caffè. Baroli Caffè enters into the head lease with the property owner; the franchisee signs the sublease with Baroli Caffè. Design and Construction – The design and construction is arranged by Baroli Caffè. The franchisee enters into contractual agreements with authorized contractors, and actual building of the restaurant is supervised by the company. Trademarks – As a Franchisee you will be entitled to the use of the registered Baroli Caffè name and registered trademarks in connection with the operation of your restaurant. Training and Opening Assistance – You will receive four weeks training at our Training Centre, followed by visits from our Field Representatives to assist you in setting up your restaurant and a further one week of intensive on-site supervision to ensure a smooth “Grand Opening”. Purchasing – All goods, services and supplies are provided through an approved central supply network. Manuals – We will provide you with a “Restaurant Operations Manual” and an “Employee Manual” that are a complete guide for the day-to-day operation of the business, as well as the reference for policies and procedures employed by the company. On-Going Assistance – A Field Representative will visit your outlet regularly to offer assistance and review your operation to ensure constant quality control of products, ingredients, recipes, customer service and housekeeping. In addition to its quality control program, the Company also provides continuously updated operations and recipe manuals, as well as centralized control and operating systems. Baroli Caffè also provides its Franchisees with on-going access to supervisory personnel with expertise in areas such as finance, accounting and marketing. Q. What is the initial Franchise Fee? >back to top A. $20,000.00 Q. How much is the on-going Royalty Fee? >back to top A. 5% of gross sales, payable weekly. Q. How much is the Advertising Fee? >back to top A. 2% of gross sales, payable weekly. Q. What is the cost of opening a Baroli Caffè Franchise? >back to top A. The cost of opening a Baroli Caffè Franchise can vary depending on size, location, configuration, differences in construction costs and other factors, however a typical Baroli Caffè ranges between $160,000 and $275,000. Q. How do I finance the purchase of a Franchise? >back to top A. While Baroli Caffè can assist you with submitting an application for financing to a lending institute, there is no direct financing available from Baroli Caffè. Your financial institution will require you to show unencumbered equity for 40% of the construction cost. This can be in the form of cash, savings, chequing or GIC accounts. RRSPs are not eligible. The remaining 60% can be financed. Q. How much money can a Franchisee expect to earn? >back to top A. We cannot predict the ROI of any cafe as there are many variables that can affect the success of a business. Furthermore, in some provinces, we are bound by legislative restrictions which hinder our ability to provide financial forecasts or make any form of income claim. Accordingly, we provide no representations or projections of revenues, costs or return on investment. Q. What is the initial term of the Franchise Agreement? >back to top A. Ten (10) years. The initial fee paid by the Franchisee is applicable to the duration of the original term. Q. Is the Franchisee required to purchase equipment, supplies or ingredients directly from Baroli Caffè? >back to top A. No. However the Franchisee must purchase any equipment, supplies and ingredients from approved suppliers who have demonstrated the ability to supply these items according to Baroli Caffè standards and specifications. Q. Does Baroli Caffè assist Franchisees in acquiring the various permits and licenses required for the opening and running of the restaurant? >back to top A. Yes Baroli Caffè offers its full assistance in helping the Franchisee obtain all permits and licenses. Q. Once the Franchise Agreement is signed, how much time elapses before the restaurant is operational? >back to top A. The restaurant site is the determining factor. Depending upon the prospective location and the landlords work completion, normally a twelve week period is required before opening. Q. Is it possible for several partners to acquire a single Baroli Caffè? >back to top A. Yes, several persons may cooperate and obtain a single franchise. Ideally it is preferable to keep the number of associates to three so as to minimize communication problems and management conflicts. Q. Must all partners dedicate themselves to the full-time management of the restaurant? >back to top A. No, Baroli Caffè reserves the right to free any of the partners from daily management of the restaurant. It is however, imperative that at least one partner dedicate all his/her time to the daily management and running of the unit. Q. Can a Franchisee own more than one Franchise? >back to top A. Yes, provided that the Franchisee has demonstrated to the satisfaction of Baroli Caffè that he/she is financially capable and can properly manage more than one restaurant. Please understand that Baroli Caffè will not make any prior commitment to a Franchisee in this regard, and any opportunity for multiple restaurants in a function of performance at the Franchisee’s existing location over a reasonable period of time. Q. May the Franchise be sold at any time? >back to top A. Yes, at any time during the franchise term, subject to Baroli Caffè approval of the prospective purchaser, who must meet all Baroli Caffè standards at the time. This approval is granted in the same manner as for the original Franchisee, taking into account current operating and market conditions. All information provided will be treated in the strictest confidence, and after it has been studied, the applicant will be contacted so that existing openings for the acquisition of a Baroli Caffè Franchise may be discussed. We have attempted to provide the answers to the questions most frequently asked about Baroli Caffè. Should you require any additional information, please do not hesitate to contact us. We are delighted that you have reviewed our program and look forward to hearing from you. Please note that it is the responsibility of the Franchisee to conduct an independent investigation of the business and to consult with our own Accountant and/or Attorney about the benefits and risk factors associated with a new business. Once you are ready to take the next step, click on submit on-line application and complete the Baroli Caffè Franchise application.
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