An exciting business opportunity supported by an experienced franchisor

Transcription

1 An exciting business opportunity supported by an experienced franchisor Brand Franchise Opportunity

2 Table of contents 1 A message from the Managing Director Mr A.J. (Tony) Alford...3 Introduction to Brumby s GO!...5 Advantages of Brumby s GO!...6 Brumby s GO! support system...7 Brumby s GO! business models...8 Are you ready to take the wheel?...9 Want to join the Brumby s GO! team?...10 Contact...11 Brumby s GO! provides baked-to-go fresh food options everyday for your enjoyment! BAKED TO GO AT Brumby s GO!

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4 A message from the Managing Director Mr A.J. (Tony) Alford 3 Dear Prospective Franchisee, Retail Food Group is the ultimate owner of the Donut King, Brumby s Bakery, Michel s Patisserie and bb s cafe franchise systems throughout Australia and New Zealand. On behalf of Retail Food Group, and the Brumby s franchisor (Brumby s Bakeries Pty Ltd), we welcome the opportunity to introduce ourselves and our franchise systems and thank you for your inquiry. Since its inception in 1989, Retail Food Group has successfully grown from a small franchise system manager with less than 50 stores to one of the largest in Australia. It now boasts four (4) franchise systems and in excess of 1050 stores under its management umbrella. Each of our franchise systems offers an opportunity to embark upon a unique food retailing experience. We are of the opinion and belief that our systems are some of the most respected systems in Australasia, remaining unsurpassed in terms of being fully-integrated franchise systems, all offering quality products and market leadership in each of the brand s four respective target markets. We attribute this to the ongoing dedication and loyalty of our franchisees whose businesses are nurtured by a franchisor who provides business education, marketing and operational systems as well as ongoing, continually improving support systems which have been developed, enhanced and maintained over many years. This development increasingly takes advantage of the group economies and synergies which a large franchise network can command. The commissioning of a retail business is the culmination of an individual or family dream of becoming an entrepreneur and controlling your own financial destiny. Assuming control of one s financial destiny however, also involves a degree of risk which varies according to both the type of business participation as well as the risk aversion profile of the individual. The resolve to become a small business owner involves the consideration of many issues other than purely financial aspects. To profitably and productively conduct a retail business, there are two other important investments, apart from the financial, which require determination: Lifestyle investment the time, commitment and dedication needed to successfully conduct the business; and Emotional investment the investment in such a business will, almost without exception, have an impact upon or effect on more than one person. We are of the opinion that Retail Food Group has assembled four quality franchise systems, where a prospective franchisee can thoroughly investigate the right system and business for themselves, to ensure they; a) satisfy their financial, lifestyle and emotional investment criteria, while b) acknowledging the risk which is present in any business pursuit. From our perspective, we are desirous of procuring franchisees who display a genuine capacity and capability for contributing to the ongoing enhancement and growth of the relative system they join.

5 4 Ideally, a franchisee will possess the following personal attributes: Communication Skills Honesty Integrity Positive Personality Self-Motivation Financial Competence Goal-Oriented Leadership Qualities Team Player If we have just described your personality, outlook and aspirations we seriously encourage you to consider the benefits and advantages of investing in one of our proven-quality franchise systems. Those personal attributes, when combined with our strong group identification, excellent product ranges, comprehensive initial training programmes, access to extensive resource bases as well as the ongoing support that each of our franchise systems offer, provides a substantial platform from which franchisees can strive for and achieve business, financial, lifestyle and emotional wellbeing or success. franchised operation can, and does, assist you in the achievement of your personal goals and aspirations. The majority of people work and become business owners to assist in the achievement of non-business objectives those objectives are usually focused around lifestyle and family. Put another way, the achievement of lifestyle and family goals will almost always be related to the success of your franchised operation. Every person involved in a Retail Food Group franchise system has made a significant investment, whether it be monetary, emotional or other means. We are confident that the systems which Retail Food Group has developed and assembled over the past 19 years can assist you not only in protecting your various investments, but assisting you to prosper in what is a very competitive industry. Finally, we consider that the acquisition of a Retail Food Group franchise is not just a means to achieving lifestyle, financial and emotional objectives it will become part of you. Yours Sincerely Success is a term too often used and, in our belief, neither well-defined nor understood. Success as a franchisee is measured and determined by reference to the degree by which your actual performance matches all those benchmarks previously established for your business. Success therefore, from our perspective, is the degree by which the A J (Tony) Alford Managing Director / Chief Executive Officer RETAIL FOOD GROUP (AUSTRALIA)

6 Introduction to Brumby s GO! 5 Brumby s is proud to have been among the first Australian companies to successfully embark on a franchising program not only when franchising was in its infancy, but during a period when the speciality bread market was just beginning. Brumby s GO! represents an evolution of the Brumby s Bakeries franchise system and was developed in order to meet consumer demand for single serve, ready to eat, freshly prepared snacks on the run. Utilising the strength of the Brumby s brand, including traditional products and business principles, the Brumby s GO! concept opened its first store in Since that time, the concept has grown to incorporate over 10 stores throughout Australia as a sub-group within the 300 plus outlet Brumby s system. In 2007, the Brumby s system was acquired by ASX listed Retail Food Group Limited who is also the ultimate owner of the Donut King, bb s café and Michel s Patisserie franchise systems. With flexible business models to suit different locations, and a innovative approach for consumers seeking convenient, fresh, fast food solutions, Brumby s GO! is a modern take on the traditional Brumby s Bakery. To sum up, the Brumby s GO! concept offers baked ready-to-go products made daily onsite, utilising Brumby s GO! tried and tested recipes. Brumby s GO! keeps you GO-ing!

7 Advantages of Brumby s GO! 6 Brumby s GO! is an eat now single serve business. Our focus is on product, retail and operational excellence. Our innovative grab and go product range is constantly reviewed to meet customers needs. For us, retail excellence means a commitment to the customer. Unique shop fit, signage and merchandising ensure we stand out in the retail environment; while training, constant consumer marketing and review of all retail activities keep us informed. Brumby s GO! has a unique range and variety of products that satisfies the trend of fresh snack items for consumers on the go. Benefits of joining Brumby s GO!: Being your own boss in a successful retail franchise system Utilise Brumby s Bakery reputation and brand awareness Buying power with key suppliers Economies of scale in marketing functions and administration Hands on support and business advice Occupational Health and Safety system One stop shop for all products, dry and wet, into store Ongoing product development and launches Training and development Retail corporate image A good track record of performance by franchisor A unique product range which is growing in demand Comprehensive operations manuals A thorough training programme Dedicated and competent franchisor support Food Safety System Staff Training System

8 Brumby s GO! support system 7 Here at Brumby s GO! we have the resources to support you. Our objective is to build sales in existing stores by focusing on building brand awareness. Brumby s GO! People. Our company is structured to support franchisees, both existing and prospective. Behind every franchisee is a professional support team in all aspects of the Brumby s system. Brumby s GO! Service. Brumby s GO! prides itself on its customer service. Customers not only like our fresh products, they like our staff too. Brumby s GO! Culture. Becoming part of the Brumby s GO! team is like joining a family. Brumby s GO! enjoys a hard-working, yet friendly and relaxed style of culture. Regular meetings with franchisees are times to enjoy as well as being a time to explore ideas and provide feedback to the franchisor. Established franchisees welcome the opportunity to help those new to the Brumby s GO! system. Brumby s GO! supports our local community. The Brumby s GO! system supports the community. Social responsibility is very important to our franchisees and we are proud to support our local community. Brumby s GO! Training. Brumby s GO! philosophy is that successful businesses are built on a foundation of well-trained operational and management staff. Initial training is provided in preparation and retail operations. Topics include employee recruitment, sales techniques, stock control, financial management and most importantly, the finer points of maintaining good customer relations that are essential in securing repeat business. Modules cover food preparation techniques, customer service, stock and cost control, purchasing and local store marketing. Brumby s GO! Marketing. Our tiered marketing programme is strategic and focused to promote the corporate brand at national, state and local levels. Our marketing team is dedicated to drive customer count, sales per customer and total sales in your store. Local area marketing support is available to all franchisees and is a key element to each store s success. Local area marketing is important to build community relationships and also the local profile of each store. National in-store promotions occur regularly throughout the year. These national promotions are supported by additional advertising in mediums such as radio, magazines and newspapers. Our national promotions aim to increase brand awareness, customer count and total sales.

9 Brumby s GO! business models 8 There are three different business models available to ensure an appropriate design is established to suit the location. Option One - Stand Alone Kiosk This kiosk model uses a frozen dough principle, allowing for ease of preparation. This allows for a reduced preparation time frame and offers the bonus of consistency of product with ease of preparation. The product range includes single serve items, both hot and cold plus a range of freshly made lunch offerings filled rolls, baguettes and hot & cold beverages. Franchise cost: $323,000 - $359,000 this is an indicative range only; this price includes shop fit, equipment, fees and $15,000 worth of working capital. All figures are ex GST. No bakery or retail experience required. Ease of preparation prove and bake product range. 4 week training provided at purpose built training academy. No need for standard bakery hours. No qualified baker required. Baked-to-go products made fresh daily on site. Suitable for a kiosk location. Option Two - Stand Alone Location This model has a broader offer versus model one as it allows you access to more of the traditional Brumby s range and sells bread. The product range includes single serve items, both hot and cold, plus a range of freshly made lunch offerings filled rolls & baguettes and hot & cold beverages. This model requires slightly larger floor space and increased bakery equipment. This option is suitable to an (inline) shop location. No bakery or retail experience required. Bread and dough based products are made on site (lower cost of goods than option one). Bakery and business training is provided. Baked-to-go products made fresh daily on site. Suited to an (inline) shop either internal (shopping centre) or external (shopping centre and high street position). Trade qualified baker required (employed by the Franchisee) Option Three A stand alone full bakery concept retailing Brumby s Bakeries traditional bread lines in addition to the GO! offerings. This model offers the full Brumby s range of bread products as well as all of the products referred to in model one and two. This concept will require a trade qualified baker and has the highest entry costs due to bakery equipment. Franchise cost: $474,000 - $505,000 this is an indicative range only; this price includes shop fit, equipment, fees and $15,000 of working capital. All figures are ex GST. No bakery or retail experience required. Bread and dough based products are made from scratch on site (lower cost of goods than option one). Trade qualified baker required (employed by the Franchisee). Complete initial bakery training is provided for the incoming franchisee. Baked-to-go products made fresh daily on site. Brumby s traditional range of bakery items. Suitable for regional locations. On site seating for a coffee offer should be considered. Franchise cost: $452,000 - $472,000 this is an indicative range only; this price includes shop fit, equipment, fees and $15,000 worth of working capital. All figures are ex GST.

10 Are you ready to take the wheel? 9 Ultimately your destiny is in your hands! The success of the Brumbys GO! brand depends on our franchisees. If you possess the following skills; Self motivation, Strong desire to achieve and succeed, Have a positive attitude, Strong communication skills, A genuine interest in people, The ability to deliver outstanding customer service, Able to relate well to employees, Have a high level of enthusiasm and energy, Wish to be actively involved in your own business, Are willing to work the necessary hours, Will be comfortable working within a franchise system, Are willing to comply with stringent operating standards, and Have a passion for retailing? Then you meet the initial criteria of a successful Brumby s GO! franchisee.

11 Want to join the Brumby s GO! team? 10 Once you ve committed to selecting a Brumby s GO! franchise, we support you through a structured application process, openly exchanging information and forming a pro-active, positive relationship from the outset. STEP 1 ENQUIRY AND INFORMATION PACKAGE IS RECEIVED STEP 7 APPLICATION APPROVAL OR DECLINE STEP 2 FIRST INTERVIEW COMPLETED WITH STATE CONSULTANT STEP 8 COMPLETE FINANCE STEP 3 STEP 4 APPLICATION FORM COMPLETED DISCLOSURE DOCUMENT PROVIDED SEEK INDEPENDENT LEGAL AND FINANCIAL ADVICE (OPTIONAL) STEP 9 STEP 10 FRANCHISE AGREEMENT ISSUED SEEK MANDATORY INDEPENDENT LEGAL ADVICE (IT IS ALSO RECOMMENDED THAT YOU SEEK INDEPENDENT FINANCIAL AND BUSINESS ADVICE AT THIS TIME) STEP 5 STEP 6 STORE VISITS MEET EXISTING FRANCHISEES INTERVIEW WITH RFG REPRESENTATIVE MEET YOUR REGIONAL BUSINESS DEVELOPMENT MANAGER (BDM) PROSPECTIVE FRANCHISEE CONSIDERS FINANCE OPTIONS STEP 11 STEP 12 STEP 13 STEP 14 SIGN AND RETURN FRANCHISE DOCUMENTATION SHOP FITTER S CONTRACT COMPLETED IF APPLICABLE TRAINING STORE OPENING The foregoing is a guide only. The application process is dependent on individual circumstances.

12 Frequently Asked Questions 11 Q: Do I require any special experience? A: Having business experience is always an advantage. We provide comprehensive training for all areas of your new store. Q: What is the term of a franchise? A: Franchisees are ordinarily granted a five (5) year initial franchise term together with an option to renew for a further (5) years. This may differ dependent upon the lease term applicable to the site in question. Q: Do I have to pay a deposit? A: A $3,300 (including GST) deposit is payable upon application. These monies, less the franchisor s reasonable expenses (to a maximum of $300), are refundable if the application is not approved. Q: What are the ongoing fees of the franchise? A: A Franchise Service Fee equal to 7.5% (plus GST) of your total gross sales is payable. A Marketing Contribution equal to 2.5% (plus GST) of your total gross sales is payable into an independently audited marketing fund. This fund is used to collectively promote increased customer awareness and provide each store with national promotional material and ongoing marketing services to facilitate constant attraction of new customers, increased average dollar sales and the frequency of purchase. Q: Who selects the site? A: Our dedicated leasing team throughout Australia is continually in contact with major shopping centres and leasing agents to secure sites for Brumby s GO! stores. Franchisees must ultimately decide for themselves, after they have had the opportunity to consider all the relevant information, whether to proceed with a particular site. Q: What services are included in return for the franchise and marketing fees? A: The services you will receive cover a wide range of management assistance and operational services, including; On-going operational training and support. Marketing support including national advertising, public relations campaigns, point of sale material and media selection and placement. Stringent quality control standards. Business Development Manager (BDM) to assist franchisees with all aspects of daily operations to ensure appropriate performance levels and quality standards. Q: Do I need any other money to start? A: In addition to the cost of acquiring a Brumby s GO! store, you need to budget for stamp duty in relation to the lease and your own professional advisors costs and working capital. For a more precise list of costs associated with the acquisition of the franchise, refer to the Franchisors Disclosure Document. Q: What initial Franchise Fees are payable? A: The following GST exclusive initial franchise fees are payable: $15,000 - Initial Franchise Fee $6,000 Initial Training Fee $2,000 -Initial Marketing Fee Prospective franchisees should refer to the Franchisor s Disclosure Document which provides a full range of all fees or costs payable in connection with the establishment of a franchise. Q: Can I get any special finance? A: We are an approved franchise system with ANZ, Westpac, and Commonwealth Bank of Australia - this means that potential franchisees that achieve bank approval may be able to borrow between 50% - 65% of the total establishment cost on the value of the business.

13 12 Q: Have you got any sites ready to go? A: We are always on the lookout for new sites. Speak to one of the team to find out what s available or go to Q. What detail can you provide in gross profit, expense items and turnover that will help me prepare budgets? A. It is inappropriate for us to make any representation to you regarding the potential levels of sales and profitability of any existing or new store. We will provide proforma budget layouts that you can test and budget for the various levels of sales that you decide are appropriate. You should also obtain independent financial advice in connection with these matters. Q. Where are Brumby s stores currently located? A: Please visit: or for an up to date listing of store numbers and locations. The Franchisor s Disclosure Document also provides information regarding existing stores. Q: Further Information? A: We can offer you a great business model in a growing industry. We will work with you to help you do. Please contact RFG for further information. Brumby s GO! has been a great addition to the Spotless food and beverage portfolio here at the Brisbane International Airport. The strength of the Brumby s brand together with an extensive range of high quality, freshly baked products have made Brumby s GO! a favourite place to visit for both passengers and airport staff alike. Brumby s GO! has been operating since 2007, it continues to provide a niche product and quick service that fits perfectly into the fast paced environment of the International Terminal. Scott Harris Spotless Operations Manager.

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15 14 Thank you for taking the time to read this document. If you are interested in taking the next step please call the Brumby s GO! Franchise Recruitment number for further information. Retail Food Group Key Personnel Gavin Nixon Head of Strategy - Emerging Markets Greg Masterson National Development Manager Faith Manning National Sales & Leasing Co-ordinator Franchise Information Free Call Aust: Free Call NZ: rfga@rfg.com.au Web:

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