1. How much is the initial franchise fee?
Cost breakdown (excluding vat)
A. JOINING FEE (Upfront fee)
R125 000.00
JOINING FEE INCLUDE:
Training: Operational Training
Restaurant Management Training
Business Financial Training
Customer Service Training
Point of Sale Training
Cake Training
Psychometric Testing
Travel & Accommodation – outside Gauteng (TBC)
TOTAL FRANCHISE FEE =
JOINING FEE + TRAVEL + ACCOMMODATION
B. BUILDING FEE
All fees relating to the building of the store will be for your own account.
C. WORKING CAPITAL
R 300 000.00
WORKING CAPITAL INCLUDE:
Stock
Contingencies
Liquor License
Trading Shortfalls
D. MONTH ZERO
DEPENDING ON VARIABLES
Staff Salaries
Staff food during training
Deposits
E. MONTHLY COSTS
ROYALTIES 4%
MARKETING CONTRIBUTION 2% of turnover expected to be spend on marketing activities.
2. How much cash contribution do I need to have on hand to invest in the franchise?
You require on average 40% unencumbered cash based and calculated on the average store cost of R 2 200 000.00 which has the above mentioned items included.
For example: 40% of R 2 200 000.00 = R 880 000.00 (R 880 000.00 would then be your 40% contribution that you need available).
3. How much experience do I need in order to start the franchise?
In order for you to own an Isabella’s franchise, experience is not necessary but it would be an advantage if you know how to manage a business and/or acquired skills in your working experience. Industry experience a bonus. However should you not have this experience we do provide training for franchisee’s.
4. What personal capabilities are required from me in order to qualify as a
franchisee?
• Hands on/ owner-operator;
• Compliant Entrepreneur;
• Passion for the brand;
• Business/ financial acumen;
• Organisational skills;
• People person, customer oriented, friendly, approachable
• Sales and customer service orientation
• Proactive;
• Motivator;
• Ethical / honest;
• Character reference;
• Spouse support for the business;
• Industry experience is an advantage
5. How long is the franchise application process including the cooling off period?
Franchisee recruitment process flow
INITIAL
Telephonic / E-mail / Website Enquiry:
• Complete Initial application form;
• Successful Applicant to complete full application form.
DECISION TO PURSUE FURTHER
• First Interview;
• Signing of confidential agreement.
COMMITMENT
• Commitment Meeting;
• Payment of a commitment fee;
• Disclosure Document, Franchise Agreement and a business plan outline to prospective franchisee.
ASSESSMENT OF PERSON
• Psychometric test;
• Business plan (strategy) for the specific area submitted by prospective franchisee;
• Panel interview.
FORMALISATION
• Site approval;
• Sign Franchise Agreement and pay Franchise Upfront Fee;
NOTE: 14 day cooling off period prior to signing and 10 business days post signing.
• Site set up;
• Initial training for franchisee and staff.
7. Do you provide training for successful franchisee applicants?
Training:
• Operational Training
• Restaurant Management Training
• Business Financial Training
• Customer Service Training
• Point of Sale Training
• Cake Training
8. What are the best available locations for opening a new restaurant?
There are available sites in greater Johanesburg Gauteng and as well as in Western Cape. All sites will be discussed in detail once initial application was successful. We are however not limited to these areas.
9. Would it be possible to open a restaurant outside of South Africa?
We, at Isabella’s, have a location plan set out already with sites available for you to choose from. If you have found a location outside South Africa and the feasibility study that you would have conducted on your own shows huge growth potential, than we will look into it and we will discuss the possibilities with you.
10. What contractual obligations would I have to adhere to?
Initial Obligation of the Franchisee:
You’ve decided that you are interested in owning your very own Isabella’s! The perfect Isabella’s Franchisee should keep the initial and ongoing responsibilities in mind when making the decision to own and operate their very own store. Initially, each potential franchisee is expected to manage the set up of the business itself (registration, premises, lease agreements etc), manage the recruitment of staff and of course to attend the required training sessions (brand training, training on the IT and Point of Sale systems etc) which are offered by Isabella’s Head Office.
Also included in the initial responsibilities is the budgeting, securing of insurance (general, business, public liability), the training of vetted staff, commitment to vetted systems, hardware and procedures for IT, Point of Sale and brand rules. Just before the official launch of your very own Isabella’s store, the Franchisee is expected to ensure that the shop is “launch ready” and that the franchisee, the staff and the brand are all compliant with the regulations stipulated in the pre-opening manual.
Ongoing Obligations:
Once your shop is open and running, the Isabella’s Head Office team will be there with you every day to support you during this phase of your shop. Achieving set targets and meeting performance criteria will become a part of your daily thought process. Our new franchisee’s are expected to conform to specified working hours and operating hours (the best run Isabella’s always has a hands-on approach from the owner). Meeting the financial responsibilities to the franchisor is as vital as ensuring that adequate finance is available for the ongoing operation and growth of your
store. Allowing the Franchisor and the Head Office team access to the premises and the management and financial information will ensure that you always have the back up of the Head Office team – allow us to support in every way we can. Ongoing training for the Franchisee (as well as the shop staff) is a requirement at Isabella’s – we keep on getting better! It goes without saying that the ongoing responsibilities of the new Franchisee include marketing and promotion of the store and business using only the material which has prior, written approval of the Franchisor and brand manager. Participation in the national brand activations is also a must.
11. What support will I receive from head office?
Initial Obligations:
The Isabella’s Franchisor (and the Franchise Head Office Team) are very involved in the beginning stages of your new store. We have decision making rights on the approval of the lease and the approval of the arrangement and physical set up of your brand new
store (after all, we’ve done this a few times so we have some experience). The Franchisor will check that all licenses and legal documents are in place and we will be there to advise our new franchisee on all the initial responsibilities expected. The Franchisor will provide the systems and procedures required to obtain and managed the pre-approved IT systems, Point of Sale
systems and brand tools. The Franchisee will also provide all of the necessary training manuals and information required which specify certain policies and procedures. Remember, the Franchisor and the Head Office Team are here to provide advise on all administration, management and accounting aspects of your new business. The Franchisor takes the responsibility of protection of all trademarks, logos, slogans and icons for the business.
Ongoing Obligations:
The Franchisor also has ongoing responsibilities towards the Franchisee. These include the continous availability of support, information and assistance required by the Franchisee to meet the specific criteria in all operational and brand manuals. Continually providing the Franchisee with all new information, improvements, updates, enhancements, modifications and developments to the systems, business model and intellectual property.
The Franchisor will also make available ongoing training programs, regularly measure the Franchisee’s performance, regularly arrange national meetings and assist with the review of financial and management performance. The Franchisor will allow the Franchisee and staff the benefit of ongoing sharing of information, updating of manuals and continually improve and develop the franchise system.
12. Will I have to apply for a liqour license for the restaurant or is there a generic license that is used for all the restaurants?
Every restaurant needs their own liqour license as the store is individually owned and the license is therefore under the owners name and not of the franchisor. If you are buying an existing restaurant, then the liqour license ownership will be transferred into your name.
13. What if I cannot pay the monthly royalties?
The royalties are calculated on the restaurants turnover. If you have not made a turnover in that month, then you will not be reqired to pay the royalties for that month. If you do make a turnover, then you will then be required to pay the set royalties.
14. How involved is the franchise with charities?
Isabella’s is involved does take part in charity events. We have adopted a charity that we make contributions to and there is another where we have allowed the young girls to have their birthday parties at the Petit store. We do also allow our individual stores to come up with their own charity drives.
15. Will I be restricted with the size of the restaurant I open?
Absolutely not. The size of our average store is 250 sq m. Should you want a bigger or smaller store, we will look for a location that will best suit your needs and ours.
16. Would it be possible to aquire more than one Isabella’s?
Yes it is possible. However one of our strict regulations is that the owners of the restaurants need to be at their stores 85% of the operating hours times. It could be possible for 1 person to purchase 2 stores and have the other store run by him, and the other store run by someone who will be at the store for 85% of the operating hours time.
17. How much will I make per month?
This is dependant on the size of the store, the location and the frequency of foot traffic. We will provide you with a projection of income before buying a franchise.
18. Is there a finance plan option available?
Yes there is a finance plan available. Details about it are discussed upon approval of your application.
