CHICKEN & BURGERS in. New Zealand

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1 CHICKEN & BURGERS in New Zealand

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3 WELCOME TO OPORTO At Oporto New Zealand, we are always on the lookout for motivated people to join our existing franchisee team and share our growing success within the dynamic fast food industry. Oporto was introduced in New Zealand in 2001, with it s first store opening in Auckland. Since then, Oporto has had a tremendous growth and it is a strong player within the quick service restaurant (QSR) market. Our growth is set to continue, having established our brand in our customer market segment. We are constantly reviewing new site opportunities and can offer a number of exciting store opportunities including foods courts, street fronts and drive thru locations throughout the North Island and South Island in New Zealand. Oporto s international growth has been very strong, especially in Australia where the group has opened 15 new stores each year. This has been featured in the BRW Fast Franchise (Australian) editions for the past 6 years running. Oporto International also opened its first UK store in October 2008 and plans are in place to open in the United States of America and China shortly. Oporto s success has been its undeterred commitment to its core value of high quality, great tasting, authentic fresh-grilled chicken and burgers for our growing customer segment. We welcome your interest in joining the Oporto New Zealand family and look forward to exploring this exciting opportunity with you in greater detail. Oporto Lawrence Julius Franchising NZ Pereira. CEO. Limited

4 source of the sauce Special recipes, secret sauces, traditional Portuguese cooking methods Oporto s Founder Antonio Cerqueira brought much more to Australia than just his accent, but he wasn t about to reveal the secrets of his unique, traditional chilli sauce to a soul! Instead, he opened his first Portuguese-style chicken restaurant on Sydney s famous Bondi Beach in 1986, stunning the locals taste-buds and quickly gaining an ever-growing army of fans. That first splash of Antonio s now legendary, almost addictive sauce has grown into a wave of great taste that now satisfies over 13 million people a year. Antonio s strict insistence on the highest standards of freshness and quality, his secret sauces and the genuinely relaxed, friendly atmosphere to make Oporto s fresh-not-frozen, grilled-not-fried chicken deliciously irresistible! "I think my favourite's Lemon & Herb, but they're all delicious - really more-ish!" Antonio Cerqueira - Founder

5 THE SECRET So what, exactly, is Oporto s recipe for success? Simple. It s all about the taste and that unique, irresistible Oporto flavour comes from: Our real, authentic-style fresh-grilled chicken. Our secret marinades, used prior to cooking our chicken. Our legendary, irresistible Chilli, Lemon & Herb, Prego, Chillata or Garlic sauces which are available for our customers to apply to our chicken after cooking. Oh, come on - you didn t really expect us to reveal those secret recipes, did you?! "No one does chicken like Oporto. It's the flavour..." THE TASTE OF OPORTO The Bondi Burger Oporto s original Classic - fresh grilled chicken breast fillets, lettuce, cheese, mayo and our legendary Chilli Sauce. The distinctive Oporto fresh-grilled flavour Its starts with our sercret marinade, then all Oporto chicken is cooked Portuguese-style...laid flat, then it's flame-seared on the char-grill to keep the fat out and the flavour in. The chicken portions are then supplied with the customer s choice of our legendary sauces. "Oporto's legendary sucesses of Fresh Grilled Chicken is the reason why it taste better."

6 FRESH FROM THE KITCHEN

7 OUR STORES STORES IN NEW ZEALAND Albany Oporto Albany Oteha Valley rd North Shore Botany Downs Shop D500 Ti-Rikau Drive Botany Downs, NZ Botany Town Centre BTC Food Court 500 Ti Rakau Drive Botany East International stores in Australia - www. qsrh.com.au LynnMall Shopping Centre 3058 Great North Road New Lynn, NZ Mission Bay Tamaki Drive Mission Bay, NZ Pakuranga Westfield Shopping Centre Cnr Tirakau and Pakuranga Roads Pakuranga, NZ Sylvia Park Sylvia Park Shopping Centre Food Court, Shop No. FC Mt Wellington Highway Mt Wellington, NZ Oporto Hamilton FC09, Food Court Centre Place 501 Victoria Street, Hamilton Oporto Manukau Supa Centa 72 Cavendish Drive Manukau

8 RECIPE FOR SUCCESS Since our first Franchised store in Sydney was opened in 1996, Franchising has been a key element in Oporto s success. Oporto NZ's first franchise store opened in Aware that our future depends on the dedication, creativity and co-operation of Franchise owners, Oporto s Management Team gives the Franchise programme its highest priority. Testifying to our enthusiastic support and encouragement of those with high aspirations for success is the fact that many Oporto Franchisees own more than one store. Do you qualify? Whilst previous food industry experience is not seen as a necessity in our evaluation of potential Franchise owners, a commitment to devote your full time focus and attention to your Oporto business is considered essential. Other important factors include: "Being part of the Oporto family has been a great experience" Current financial standing. A willingness to adhere to Oporto s proven, successful operating policies and procedures. An ability to work in a fast-paced environment where customer contact is constant and crucial. Past achievements, no matter how small. An ability to learn quickly and communicate effectively, to operate comfortably in a team-oriented environment and to provide excellent customer service.

9 BENEFITS of BECOMING AN OPORTO FRANCHISEE Whilst most Oporto stores are successful, it is important to understand that with any business there is an element of risk. That said, one of the benefits of a successful franchise concept is that one is investing in a tried and tested model that has proven successful over many years - and in the case of Oporto, this is particularly true. Oporto is an exciting, expanding food operation. As one of our Franchisees, you will have the right to use the Oporto name, systems and trademarks which have been developed over more than 20 years. The Brand s popularity is proven by the everincreasing number of regular customers that visit our stores - well over 13,000,000 internationally every year! Oporto is a new player in the New Zealand so there are still plenty of great opportunities available. Indeed, we believe that our best sites are yet to be found. Sites are available in Wellington, Taupo, Rotorua, Northland and South Island. "I'm my own boss, but the Support Office is always there if I need them...and that's great." You do not need food experience to join the Oporto group, as you will be fully trained by experienced Oporto staff and your store will be fully fitted out by a team of experienced shop-fitters. Oporto s Operations team provides on-going training and management support, ensuring that every Franchise owner understands the operational, financial and marketing aspects of running the business. If you want to expand your business and own more than one store, we will enthusiastically help you - provided, of course, that you are effectively operating your existing store and comply with Oporto s multi-site criteria. You will be in business for yourself, but with our constant help and support, you ll never be alone. Over the years, we have found that a franchised restaurant s success is largely determined by the qualities of its owner. Whilst we are always there to help in any and every way, your degree of success will be determined by your own drive and dedication.

10 STEPS TO BECOMING AN OPORTO FRANCHISE OWNER Start by submitting the Registration of Interest Form on our website: or call our office (09) OPORTO An initial one-on-one meeting will be arranged so you can ask any questions and decide if you want to proceed to the next step. You will be advised to undertake your own research into the Oporto group before making the decision to go ahead. Next, you will be asked to lodge your Franchise Application Form with a fully refundable deposit of $2,500 (plus GST) At a second meeting, you will receive your Disclosure Documents, a copy of the Franchise Agreement and other relevant documents. While you are obtaining independent legal and accounting advice on all documentation, Oporto will be completing credit and reference checks. Next a two-day in-store visit will be arranged so that you can get first hand experience of Oporto s dayto-day operations. This will help you make a more informed decision as to whether you still wish to proceed. Your next step is to complete the Application Agreement and top up your initial deposit of $2,500 to $9,500 (plus GST). When a suitable site has been identified and agreed, you will be required to prepare a brief Business Plan for the location. On acceptance by Oporto, you then pay the $50,000 (plus GST) Franchise Fee, sign your Franchise Agreement and commence Oporto s comprehensive, unpaid ten-week training programme, during which you will learn our systems and methods in detail. Please note:- If at any point up to signing the Franchise Agreement you feel that owning an Oporto Franchise is not for you, you have the right to cease negotiations. You will receive a full refund of your deposit unless we have incurred expenses on your behalf in relation to the application, in which case the expenses will be deducted from the amount refunded. By the same token, if we believe that you will not be able to successfully run your business, then we will advise you of this fact and cease discussions. This is in the interests of both parties.

11 OPORTO support TEAM INITIAL TRAININg Before the opening of their own store, all Franchisees must complete Oporto s initial training programme and be prepared to work in an existing Oporto store for a period of at least ten weeks without pay. Initial management training, provided as a part of this programme can be followed up with ongoing sessions if required. OngOINg TRAININg A range of professionally developed courses is available so that Franchisees, Managers and staff can constantly improve their knowledge in order to strengthen their operational skills. MARKETINg FOR YOUR STORE We also provide consultancy on the use of our corporate logo and guidelines at a local level. All local store marketing activities and initiatives specific to your store are first approved by the Marketing Department before implementation. We actively encourage stores to get involved in local community events. OPERATIONAL SUPPORT Our dedicated and experienced Operations team will visit your store on a regular basis to ensure that you are on top of all procedures and to assist in maintaining the highest standards in product quality and customer service. group AdvERTISINg Advertising contributions received from all stores are used to fund National Brand Building and Promotional campaigns for the benefit all Oporto stores. The group advertising helps increase brand and product awareness in all areas where there is an Oporto store. Franchisee views of our Franchised operators, is encouraged to provide feedback on all Group Marketing activities.

12 FINANCIALS The facts and figures below are described in broad terms only. More detailed financial information will be provided during one-on-one meetings. LOCATIONS AND SET Up COSTS Oporto oversees the construction and fit-out of all stores using approved independent contractors and multiple tenders are received and reviewed for all stores. Oporto currently employs independent contractors to locate sites; however we welcome site suggestions from potential Franchise owners. Oporto stores can either be located in shopping centres, busy shopping strip locations or stand alone drive thru sites. A typical shopping centre location will cost approximately $300,000 to $400,000 (plus GST)* to fit out. The GST portion should be refundable to the Franchisee. A typical strip shop location will cost approximately $450,000 to $550,000 (plus GST)* to fit out and more for a larger location. A typical Drive Thru location will cost approximately $600,000 to $700,000 (plus GST)* to fit out, and more for a larger location. These costs will only be relevant if the owner of the property undertakes significant building works on Oporto s behalf. Fit out costs include, amongst other things, restaurant equipment, architect fees, council fees, site finder s fee, computer hardware and related software, initial training, stock, legal fees and an allocation for store opening promotions. The costs exclude the one off Franchise fee of $50,000 (plus GST). FRANChISE FEE In addition to the store fit out costs, a Franchise Fee of $50,000 (plus GST) covering a Franchise term of 5 years is payable to Oporto upon the signing of the Franchise Agreement. OngOINg ROYALTY 6% of weekly gross sales is payable to Oporto on an on-going basis. OngOINg MARKETINg CONTRIBUTION Currently 3% of weekly gross sales is payable to a group marketing fund for group advertising. This may increase in the future. how MUCh WILL I MAKE? The profitability of an Oporto store depends on many factors such as the store s location and the ability of the Franchise owner to effectively run the business. Oporto does not provide Franchisees with any sales or profit forecasts in relation to Oporto stores. Franchisees should prepare their own financial projections after seeking independent accounting advice. FINANCINg Oporto has arrangements with a few of the major retail banks whereby favourable financing is available for Franchisees who qualify. PLEase NOTE:- The cost of a store's fit out will vary depending on the size and layout of the store.

13 FREQUENTLY ASKED QUESTIONS Q. I want to invest in an Oporto store, but I don t want to work in the store. Is this acceptable? A. Experience tells us that Oporto stores perform significantly better when their owners actively participate in the day to day running of their store. We therefore require that the owner of the business devote his/her fulltime and attention to the business we do however, encourage Franchise owners to employ a store manager, thereby enabling themselves to take regular breaks and to work on growing their businesses. Q. What will it cost me to set up an Oporto store? A. The total cost will vary depending on the size and layout of the store. Typically, stores cost between $300,000 and $700,000 (plus GST) to establish. Smaller stores or stores with existing equipment may cost less and larger stores may cost more. In addition to this you will need to pay the Franchise fee of $50,000 (plus GST). Q. How much money will I make as an Oporto Franchise owner? A. This will depend on numerous factors including the store s location and the way in which the Franchise owner operates the business. Oporto does not provide Franchisees with any sales or profit forecasts in relation to Oporto stores. Franchisees should prepare their own financial projections after seeking independent accounting advice. Q. I don t know anything about running a food business. Is this acceptable? A. Yes. Before you open your Oporto store we will train you for up to ten weeks in one of our company owned stores so that you can learn the Oporto systems and procedures. Q. Do I have to find a site? A. We have agents constantly looking for sites, however they cannot cover the entire region. With this in mind we welcome potential Franchisees who find their own sites to recommend these for our consideration and approval.

14 WITH A LITTLE HELP FROM OUR MATES We couldn t fulfill the Oporto promise of freshness if North Harbour CoolFoods didn t deliver! Thanks to their excellent service, all our dry goods arrive at all our stores in excellent condition. We are proud to work with McCain, one of the world s great food processors and producers and suppliers of our legendary fries. Oporto goes better with Coca-Cola! We re delighted to be associated with such a great beverage company. Ex-Quiz-Eat Foods Ltd in Avondale, Auckland, a long term Oporto supplier, has been with us since the start of Oporto in NZ, providing our fresh, split whole chickens and chicken fillet products. There is no substitute for quality and freshness and Tip Top, one of premier bakers, ensures our buns are the freshest in the industry. Fonterra Foodservices - New Zealand's leading provider of dairy solutions to the foodservice industry. Oporto cheese and other dairy products are supplied by Fonterra. "Our suppliers are just as valuable to us as our customers" Detpak is now regarded as a leading packaging manufacturer globally and we offer an extensive range of paper and board packaging solutions to Oporto in NZ.

15 MAINTAINING OPORTO STANDARDS Oporto is committed to continually improving its high standards of customer service, food quality and store cleanliness. The Operations team is there to ensure that these standards are upheld in all our stores. Their aim is always to assist our stores in improving these standards using the following tools: MYSTERY ShOPPER SURVEYS An independent mystery shopper report is completed for every Oporto store once a month. This report assesses the store from the customer s point of view in terms of how hot, fresh and tasty their meal was, whether they were greeted politely by Oporto staff and if they found the store to be clean and well maintained? STORE RevIEWS The store review is an internal report conducted by our Operations Manager on each of their stores on a regular basis. This report covers all aspects of the dayto-day running of the store including equipment and food safety checks, monitoring food quality and service times. The results for all these reports are compiled by store and are graded for the group, and awards are presented annually for outstanding achievement. The resultant report is used to assess a Franchisee s ability to expand. Franchisees who excel in their store results are encouraged to apply for further Oporto stores, provided they satisfy Oporto s multi-site criteria. FRESH "It's all about people, how they feel, what they want - the key is staying in touch..." CUSTOMER FEEDBACK There are 3 easy ways for Oporto customers to provide feedback and we welcome any comments. They can: 1. Call us on and leave us a message. 2. Visit our website and send us an Complete one of our free post customer feedback cards in store. All feedback received is taken seriously and responded to daily by the Operations team. All Franchisees and Managers are able to access the feedback for their stores at anytime via the Oporto intranet site.

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17 Oporto Franchising NZ Ltd 295 Lincoln Manor, Lincoln Road. Auckland, New Zealand.