BIG AL S FRANCHISE PROSPECTUS

Transcription

1 BIG AL S FRANCHISE PROSPECTUS BIG AL S FRANCHISE P O BOX HATFIELD 0028 info@bigals.co.za (Edward) or (Marius)

2 Table of Contents 1 BACK GROUND PRODUCT OFFERING FRANCHISE PACKAGE FRANCHISE FEES MARKET INFORMATION, EXPOSURE AND PROMOTIONAL MATERIAL STAFF SUPPLIERS MENU GETTING STARTED PROSPECTIVE FRANCHISEE PROFILE REFERENCES...15

3 1 BACKGROUND 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 Big Al s Franchise was officially launched in 2005, the success of the Big Al s concept has led to the opening of eleven new franchised outlets, with a further, eight stores planed for 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

4 2 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

5 3 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

6 4 FRANCHISE FEES A Turnkey store of between 60m² - 110m² will cost in the region of R650, (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, 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, per month operates at an average net profit between 15% 20% : (In the region of R13, R18, per month)* A store with a turnover of R100, per month operates at an average net profit between 18% 25% : (In the region of R18, R25, per month)* A store with a turnover of R120, per month operates at an average net profit between 25% 35% : (In the region of R30, R42, per month)* * Store performances vary. The above based on performances of existing Big Al s stores in the Pretoria East area. Page 4

7 5 MARKET INFORMATION, EXPOSURE AND PROMOTIONAL MATERIAL 5.1 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

8 5.4 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. 5.8 Sample Promotional Material Page 6

9 5.9 New Store Set-up and Branding Signage (University of Pretoria, Pretoria) Store inside (University of Pretoria, Pretoria) Counter (Evaton, Vaal Triangle) Store inside (Evaton, Vaal Triangle) Sit-down area inside store (Tramshed, Pretoria) Store Inside (Tramshed, Pretoria) Page 7

10 6 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 8

11 7 SUPPLIERS Big Al s has a registered list of National 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 9

12 8 MENU Page 10

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14 9 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 12

15 10 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 13

16 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 14

17 11 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: Web: ABSA Bank: Branch: Franchise Desk Contact Person: Kobus Snyman (Regional Specialist: Franchising) Contact Number: Web: First National Bank: Branch: Franchise Desk Contact Person: Ashith Sodha (Regional Specialist: Franchising) Contact Number: Web: Accountants: Labuschagne & Co Contact Person: Jannie Labuschagne Address: 193 Zambezi Avenue,Sinnoville, 0182, Pretoria Tel: Fax: Lawyers: Bowman Gilfillan Inc (Intellectual Property and Franchising) Contact Person: Marius Gerber Address: 165 West Street, Sandton Tel: Fax: Web: Page 15