BASIC FRANCHISE INFORMATION (MALAYSIA)

Transcription

1 Proudly A Malaysian Discovery BASIC FRANCHISE INFORMATION (MALAYSIA)

2 General Franchise Information on Dave s Deli Food Discoveries (M) Sdn Bhd is the owner and operator of Dave s Deli and all its proprietary rights. We are a member of the Malaysian Franchise Association and fully subscribe to the provisions of the Malaysian Franchise Act, which regulates and seeks to protect all parties involved in franchising business practices. Food Discoveries (M) Sdn Bhd is the franchisor of Dave s Deli in Malaysia. Deli Corporation Sdn Bhd has been given the sole rights to handle all international franchise arrangements. Essentially, here s what you get when you join the Dave s Deli franchisee family 1

3 FRANCHISOR: FOOD DISCOVERIES (M) SDN BHD Whilst most Dave s Deli outlets are successful, the start of any new business is a risk and success is not guaranteed. The success of any Dave s Deli outlet will depend on many factors not the least of which will be the franchisee s commitment, ability and financial resources. 1. COMMITMENT All franchisees must personally devote their full time and best efforts to the day to day operation of the business. We normally favor individuals and you cannot qualify for a franchise if you are an absentee or part-time owner. We also do not normally grant franchises to corporations or partnerships unless there is a specific undertaking by the directors/partners that at least one of them will devote full time to the business. 2. INITIAL FRANCHISE PERIOD The franchise agreement allows you to operate a specific outlet for an initial period of years (usually 6) accordding to the operating and business standards of Dave s Deli. 3. SET-UP COST You equip the outlet at your own expense with kitchen equipment, lighting, renovation works, signage, furniture and fittings, cutlery, cooking utensils, seating and décor. Whilst none of the equipment is purchased from us, they must meet our specifications. An estimated budget of RM750, is required for a store measuring 1800-sq. ft. in West Malaysia. The estimated budget may increase or decrease depending on location, size and renovation complexity. 4. INITIAL WORKING CAPITAL You should allocate a further RM15, for working capital to cover the initial order for stock and food items and for a cash float to start the business. 5. FURTHER FINANCIAL COMMITMENTS Further financial commitments will include pre-rental payments and deposits. 6. INITIAL FRANCHISE FEE An initial Franchise Fee of RM100, per store is payable (less any prepaid depositsthat can be credited) upon signing of the franchise agreement. This fee is subject to change without notice. 7. EXCLUSIVE RIGHT As a Dave s Deli franchisee you will have exclusive rights to use our trade name, trademarks and the Dave s Deli operating system for that particular store. Our highly experienced professionals will assist you on the following: Site evaluation Equipment specifications Customized plans including layout Design and concept Brand building Advertising and promotion Pre-opening support Renovation works and construction review Point of sales system training Training On going visitation and support. 2

4 8. MONTHLY ROYALTY FEE A Royalty Fee is charged monthly and is calculated at a rate of 5% of the monthly gross sales of your outlet. 9. INITIAL DEPOSIT A deposit of RM10, is payable together with a duly completed application form (Confidential Franchise Application & Evaluation Form) upon successful application. The deposit less any out of pocket and incidental expenses incurred by us will be used to offset the Franchise Fee of RM 100, If the Franchise Agreement is not executed within 3 months from the date of application, the deposit less all expenses incurred by us shall be returned to you and all prior arrangements, whether verbal or written shall be considered null and void. 10. RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES You are required to purchase certain sales material, marketing supplies and proprietary items from us. You are obligated to purchase items bearing the Proprietary Marks in accordance with specifications, which we will provide. Specifications include minimum standards for quality, construction, appearance and function. These specifications will be issued to the franchisee after the execution of the Franchise Agreement and may be amended from time to time by us. You are obligated to purchase or lease goods, services, supplies, fixtures, equipment, and inventory relating to the outlet or operation of the licensed business from the suppliers approved by us. We may revise the standards and specifications and the approved supplier list from time to time. NOTE: As of the date of this franchise information bulletin, we have no arrangements whereby Food Discoveries (M) Sdn Bhd, Dave s Deli or its affiliates will derive revenue as a result of purchases or leases by you in accordance with the specifications or standards we prescribe. We may in the future, create a subsidiary corporation or division to lease equipment packages for use in a dave s deli outlet to qualified franchisees. The cost to the franchisee will be competitive in the marketplace. We believe that such programs will serve to facilitate acquisition of restaurant equipment by lowering cash startup costs when compared to purchasing such equipment outright. Food Discoveries (M) Sdn Bhd, Dave s Deli or its affiliates may enter into product distribution arrangements with suppliers for certain proprietary food products, and such arrangements may provide for franchising revenue to Food Discoveries (M) Sdn Bhd, Dave s Deli or its affiliates. We may enter into network wide product agreements for third party labeled food and beverage products which franchisees will be required to offer under the terms of their franchise agreements, and we may receive compensation from the manufacturers or distributors of such products, as well as from approved suppliers and other goods and services. In addition, we may receive rebates or other remuneration from manufacturers and suppliers based upon franchisee purchases or for approval of suppliers products or services. 3

5 11. BASIC FRANCHISE OBLIGATIONS OBLIGATION OF FRANCHISOR FRANCHISEE 1 Site Selection and acquisition/lease Evaluation Approval 2 Pre-opening purchases/leases Negotiate Execute and Pay 3 Site ment and other pre-opening requirements Arrange and Pay Turn-Key and Approve 4 Initial and ongoing training Opening Attend and Participate 5 Opening Arrange and Attend Participate 6 Fees Collect Pay 7 Compliance with standards of operations and guidelines Administer Adhere To 8 Trademark and Proprietary Information Protect and Police Non-Disclosure 9 Restrictions on products Administer 10 Warranty and customer service requirements 11 Ongoing product /service purchases 12 Maintenance, appearance and remodeling 13 Insurance Standards Secure 14 Owner s Participation Opening, Assist Secure 15 Inspection/audits Evaluate 16 Records/Reports Monitor and secure 4

6 Food Discoveries (M) Sdn Bhd ( P) (A member of the Dave's Deli Group) 11A-15, Jalan PJU 1A/12, Taman Perindustrian Jaya, PJ, Selangor D.E, Malaysia. t f e + (60) (60) franchise@davesdeli.com.my

7 8. MONTHLY ROYALTY FEE A Royalty Fee is charged monthly and is calculated at a rate of 5% of the monthly gross sales of your outlet. 9. INITIAL DEPOSIT A deposit of RM10, is payable together with a duly completed application form Franchise Application & Evaluation Form) upon successful application. The deposit less any out of pocket and incidental expenses incurred by us will be used to the Franchise Fee of RM 75, If the Franchise Agreement is not executed within 3 months from the date of application, the deposit less all expenses incurred by us shall be returned to you and all prior arrangements, whether verbal or written shall be considered null and void. 10. RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES You are required to purchase certain sales material, marketing supplies and proprietary items from us. You are obligated to purchase items bearing the Proprietary Marks in accordance with which we will provide. include minimum standards for quality, construction, appearance and function. These will be issued to the franchisee after the execution of the Franchise Agreement and may be amended from time to time by us. You are obligated to purchase or lease goods, services, supplies, res, equipment, and inventory relating to the outlet or operation of the licensed business from the suppliers approved by us. We may revise the standar roved supplier list from time to time. NOTE: As of the date of this franchise information bulletin, we have no arrangements whereby Food Discoveries (M) Sdn Bhd, Dave s Deli or its will derive revenue as a result of purchases or leases by you in accordance with the or standards we prescribe. We may in the future, create a subsidiary corporation or division to lease equipment packages for use in a dave s deli outlet to franchisees. The cost to the franchisee will be competitive in the marketplace. We believe that such programs will serve to facilitate acquisition of restaurant equipment by lowering cash startup costs when compared to purchasing such equipment outright. Food Discoveries (M) Sdn Bhd, Dave s Deli or its may enter into product distribution arrangements with suppliers for certain proprietary food products, and such arrangements may provide for franchising revenue to Food Discoveries (M) Sdn Bhd, Dave s Deli or its We may enter into network wide product agreements for third party labeled food and beverage products which franchisees will be required to offer under the terms of their franchise agreements, and we may receive compensation from the manufacturers or distributors of such products, as well as from approved suppliers and other goods and services. In addition, we may receive rebates or other remuneration from manufacturers and suppliers based upon franchisee purchases or for approval of suppliers products or services. 3

8 11. BASIC FRANCHISE OBLIGATIONS OBLIGATION OF FRANCHISOR FRANCHISEE 1 Site Selection and acquisition/lease Evaluation Approval 2 Pre-opening purchases/leases Negotiate Execute and Pay 3 Site ment and other pre-opening requirements Arrange and Pay Turn-Key and Approve 4 Initial and ongoing training Opening Attend and Participate 5 Opening Arrange and Attend Participate 6 Fees Collect Pay 7 Compliance with standards of operations and guidelines Administer Adhere To 8 Trademark and Proprietary Information Protect and Police Non-Disclosure 9 Restrictions on products Administer 10 Warranty and customer service requirements 11 Ongoing product /service purchases 12 Maintenance, appearance and remodeling 13 Insurance Standards Secure 14 Owner s Participation Opening, Assist Secure 15 Inspection/audits Evaluate 16 Records/Reports Monitor and secure 4

9 13. INDEMNITY Kindly note that as Franchisor, FOOD DISCOVERIES (M) SDN BHD, its appointed agents, 14. ARBITRATION IMPORTANT NOTES: giving advice and information to the Applicant, assisting the Applicant to consider and to operate a FOOD DISCOVERIES (M) SDN BHD /DELI CORPORATION SDN BHD (hereinafter Franchisor and to seek other appropriate independent advice, and that the decision to enter into the 5

10 Food Discoveries (M) Sdn Bhd ( P) (A member of the Dave's Deli Group) 11A-15, Jalan PJU 1A/12, Taman Perindustrian Jaya, PJ, Selangor D.E, Malaysia. t f e + (60) (60) franchise@davesdeli.com.my