Franchise Info Pack 2016 [J25/16]

1 of 22 Franchise Info Pack 2016 [J25/16]

2 of 22 Contents A Letter From The Franchisor 3 Your Foundation For Success 4 Your Own Successful New York Minute Business What We Do 5 Our Company 6 New York Minute Franchising Pty Ltd The New York Minute Mission Statement 7 What Makes New York Minute Different? 8 Our Business System Our Business Concept Our Products: Burgers Our Consistency Our Range of Products Our Opportunities For Growth Our Professionalism The Business 10 Our Market 10 Business Resources 11 Territories 12 Ongoing Support and Training 13 Putting You In Control Of Your Business Training Business Analysis Negotiating Group Purchase Agreements and Contract Marketing and Advertising Clarification Training 14 How Does Franchising Work? 14 A Typical Day For A Franchisee 15 A Typical Day at New York Minute 15 The Investment 16 Initial Investment Package Ongoing Costs 17 Estimated Establishment Costs 17 For A New York Minute Franchise Ten Good Reasons To Join Us 18 Frequently Asked Questions 19 How To Get Started 21 Important Privacy Information 22 Form 2 Deed Of Confidentiality

3 of 22 A Letter From The Franchisors Welcome to New York Minute Franchising Pty Ltd business opportunity. This Information Kit introduces our business and its strengths, and outlines the dynamics of our Franchise System. New York Minute is proud to offer franchises throughout Australia and to encourage you to share in our success as Australia s premier gourmet burger and fries franchise systems. Applications to become a New York Minute franchisee are welcome from people with a passion for business and customer service. We re looking for applicants with customer service and/or hospitality experience especially in food and beverages, or people with management or sales experience who have a desire to build their own successful businesses. The New York Minute brand demonstrates our accomplishments, our pride and our exciting plans for the future in the fast food industry. It signifies our commitment to quality and teamwork and in the ways we communicate with our customers, our team, our suppliers, our community, other stakeholders and each other. Our New York Minute franchisees are a key part of our team! While each retain an independent business, we will benefit together as a single strong, Australia-wide brand with group buying power, rather than a series of small unrelated businesses. After you read this Information Kit, you may have some questions. If you want to be part of an exciting growth industry, we want to hear from you. Antony Crowther New York Minute

4 of 22 Your Foundation For Success Your Own Successful New York Minute Business Successful businesses require foundations that are both strong and flexible enough to change and grow with the times. New York Minute has built a unique burger concept. When you create your own New York Minute franchise, you can count on a number of special ingredients that have made New York Minute successful today. This Australian owned and operated franchise is a strong margin, fair return, business opportunity that is backed by a franchisor with years of food experience and construction expertise. The franchisor can help you to establish your own New York Minute business and provide you with every opportunity for success. The products and services are backed up every step of the way with sound knowledge and experience in business operations, marketing, training and product development. Franchisees are ambassadors of the brand, and are expected to deal with customers in a friendly and honest manner. They must consistently provide client satisfaction as well as value for money. Franchisees are expected to perform their work cleanly, efficiently and professionally, and to acquire their product knowledge through our operation & procedure manuals and training. If you re looking to build your business on strong foundations, owning your own New York Minute franchise may be the answer.

5 of 22 What We Do New York Minute will supply a complete range of Burgers, fries, sauces and desserts. The Franchisor has Approved Suppliers and is able to pass considerable cost savings on to Franchisees. The range includes: BURGERS ORIGINAL SAUCES FRIES DESSERTS DRINKS Our purchasing power is one of the keys to our success. We have built strong relationships with our Approved Suppliers over the years, who benefit from our high volume of ongoing retail sales.

6 of 22 Our Company New York Minute Franchising Pty Ltd The New York Minute burger concept was borne of founder Antony Crowther s goal of marrying local Australian produce with traditional New York style street cuisine. After having worked in a range of short order restaurants, from kitchen hand to owner, Antony wanted to create a brand that would allow other passionate people to share in his unique vision. Today, New York Minute honours its beginnings by fixing a firm focus on providing the best quality burgers in Australia, and supporting franchisees to follow in Antony s footsteps by creating their own successful businesses. The New York Minute difference is that every member of our team, from wait staff to franchisee owners, knows and understands the local origins of every ingredient that goes into creating the food that we prepare. Sourcing bespoke local produce makes our burgers taste great, but it also ensures that New York Minute is supporting local producers and businesses. In the increasingly corporatised and impersonal world of burger chains, Australian consumers have voted with their feet, and supported New York Minute s focus on premium local ingredients, and passionate, present, and involved store owners. Having grown from one store in 2011 to 6 stores in 2016, the New York Minute team is ready for you to start writing your own chapter in our brands story as our newest franchisee and team member.

7 of 22 The New York Minute Mission Statement New York Minute s primary goal is to create Australia s best gourmet burgers at a price all Australians can afford. We strive to achieve this goal through the marriage of two simple philosophies; creating burgers using traditional New York recipes and; using only the best quality local produce sourced from the farm gate. Just like our traditional recipes and bespoke ingredients each have their own story, so to, do our franchisees. New York Minute views our franchisees as individuals and family. Your success is our success, and so we strive to help you, as a franchisee, to write your own chapter in the New York Minute Story.

8 of 22 What Makes New York Minute Different? Our Business System The New York Minute business system is built on the following: High quality convenient fast food Unique cooking style Variety of individual sauces Great customer service, offering respect, enthusiasm and honesty Consistency in striving to delight customers with a high level of products and service Team work, ownership, fun, common sense and planning Profit for Franchisees that follow the system Providing support to help our Franchisees succeed

9 of 22 Our Business Concept New York Minute is a unique concept with a committed focus on the quality of the product that has been operating successfully for 8 years. Our Products: Burgers, Fries, Sauces and Desserts The Franchisor has substantial purchasing power and as the franchise and company outlets increase in numbers, so to, will the prices savings and benefits. Our Consistency To provide consistency and continuity of the New York Minute experience, we have a detailed and documented system & training to follow. Our Range of Products New York Minute offers a range of competitively-priced products to the retail customer. Our Opportunities for Growth New York Minute provides advice, documentation and support to assist Franchisees to pursue marketing initiatives in their areas, or participate in nation-wide marketing, promotion &advertising to help grow the New York Minute brand. Our Professionalism New York Minute prides itself on quality one-on-one customer service.

10 of 22 The Business Our Market To service the great demand for the our products and services, New York Minute intends to establish company owned and franchised stores all over Australia, in particular expanding initially across Melbourne. It is a company objective to expand to all capital cities in the not too distant future. A New York Minute franchise will be basically a burger operation which will sell a selected food and beverage range. The Franchisee will combine a sales orientation with a sound business and creative mindset & following the proven system. While there is not one single demographic of people who purchase burgers, it is possible to better understand the profile of customers who visit New York Minute stores. As short order food sits within the convenience food profile, each of the stores vary significantly in terms of key demographics. However, the high quality and artisan nature of New York Minute s ingredients, coupled with a low price point, ensure that we sit squarely within the affordable luxury profile. The affordable luxury segment of the burger industry has been steadily growing over the last decade, and represents a high potential for revenue and profit growth as traditional junk food consumers transition to higher end short order quality food.

11 of 22 Business Resources Our business systems are documented in comprehensive franchise operation and procedure manuals specifically designed for New York Minute company owned and franchised stores. These include: New York Minute Operations Manual New York Minute Branding and Standards Manual New York Minute Business Training Manual The Franchisor is the term used to refer to the owner of the Franchise System. At New York Minute, the Franchisor is New York Minute Franchising Pty Ltd, shareholders are Antony Crowther & Sam Leech.

12 of 22 Territories Franchise territories will be allocated on a site by site basis. There are currently six stores trading: Carlton East Brunswick Highpoint Shopping Centre Moonee Ponds Thornbury Williamstown

13 of 22 Ongoing Support & Training Putting You in Control of Your Business New York Minute offers ongoing training and support to help Franchisees in both the day-to-day operation and long-term development of their business. The support services include the following: Training Providing detailed training to assist Franchisees to run profitable and professional businesses. Business Analysis and Advice Support Office is available to answer your questions and also carry out regular business analysis of Franchisee operations. Negotiating Group Purchase Agreements and Contract New York Minute will negotiate with Approved suppliers to obtain the best possible prices for group purchasing benefits. Marketing and Advertising New York Minute s marketing strategy is nimble, aggressive, and often guerrilla. We tailor make our advertising campaigns in house to ensure that we are constantly engaged in conversation with our clientele across traditional and emerging social media. The centralised advertising structure allows us to keep the cost of creative strategies low, ensuring franchisee investment in the Marketing Fund delivers maximum exposure. Clarification Support Office staff are on hand during normal business hours to clarify and explain any aspect of the franchise manuals and business systems.

14 of 22 Training How Does Franchising Work? Your New York Minute training starts soon after you sign your Franchise Agreement and Disclosure Document. During training the Franchisor will assist you to launch your new franchise. Franchisees will spend two weeks at a designated company owned New York Minute store, where they will receive training in all aspects of operating the business. The franchisee is expected to successfully complete all the training modules and also obtain a Food Handling Certificate from a recognized institution. The extensive training program has four components: Franchise business training Helps you operate your own successful small business. Franchisee technical training Comprehensive technical training will be conducted, where you will be taught the art of cooking the perfect burger & fry. Franchise in-house training By a New York Minute field supervisor. Franchise account management By a New York Minute account manager to ensure the smooth running of the organisation and operation. Each Franchisee will own their own independent business. You are not a partner, employee or shareholder in the Franchisor s business. Whilst the Franchisor cannot guarantee a given level of turnover in your business, he will offer you all reasonable support, including advice and mentoring, to help you succeed. Follow Our Guidelines Under the terms of the Franchise Agreement, Franchisees are obligated to use the business systems documented in the franchise operation & procedure manuals. The Franchisor provides both training and ongoing support, and it is conditional that Franchisees shall operate in accordance with the Franchise Agreement and the operating & procedure franchise manuals. Our Franchise System The New York Minute Franchising Pty Ltd franchise system ensures that each Franchisee works in collaboration with other Franchisees. The health and prosperity of each business strengthens the New York Minute brand and this benefits each and every franchise. A growing number of successful franchises mean greater marketing and advertising power, more brand awareness and market penetration, new and improved systems, and more team members to share knowledge, ideas and strategies.

15 of 22 A Typical Day for a Franchisee A Typical Day at New York Minute The working hours for a New York Minute Franchisee are dependent on the location of the store, but a typical week would consist of hours of : Street Locations Monday to Thursday 9.30am to 10.30pm. Friday and Saturday 9.30am to 5am. Sunday 10.00am to 10.30pm. Shopping Centres Entertainment precincts. Monday to Thursday 9am to 10.30pm Friday, Saturday and Sunday 9.30am to 10.30pm, or later to coincide with the picture theatres hours. Shopping Centres Food courts Monday to Wednesday 9am to 5.30pm. Thursday & Friday night 9am to 9pm. Saturday & Sunday 9am to 5pm. The aforementioned hours of operation are only a guide, as shopping centres in different states or territories may have alternative trading hours. Servicing our valued customers Checking what orders are due, meat, dry goods, vegetables etc Ordering any depleted stock and maintaining par stock levels Preparing food, vegetables Storing deliveries Preparing all visual displays and general tidy up Cleaning, cleaning and cleaning Throughout the day, the Franchisee will be receiving customer orders and preparing food and the usual restaurant type duties. What Does a Franchisee Do? As a franchisee, your first responsibility is to yourself, your investment, and your business. Becoming part of the New York Minute family as a franchisee ensures that you will receive every reasonable assistance to help you achieve these aims, and build a successful business just like our founder Antony Crowther.

16 of 22 The Investment Initial Investment Package The financial requirement to set up your own New York Minute franchise varies from operation to operation. The price depends on the location, size, and layout of your store. The initial cost covers the majority of the elements required to get the business established, including: The franchise - by becoming a Franchisee you are entitled to use the valuable New York Minute Intellectual Property (IP) and trading name, as well as being granted access to the management and product systems developed by New York Franchising Pty Ltd. Estimated Establishment Costs for a New York Minute Franchise The New York Minute Franchise investment ranges from $399,500 to $635,200 plus GST This can vary to some degree and depends on the location, size and layout of your store and what existing Lessor works and services are in place. The Rights to use relevant materials, intellectual property and business systems. The establishment of the system - this includes a full set of franchise operation manuals and initial training. The exact costing (Fit-out and construction) will vary from site to site and will depend upon, area of the store, lessor works and the existing condition and services available at the Location.

17 of 22 Ongoing Costs Ongoing costs A Royalty Fee of 5% and Advertising Levy of 2 % are payable weekly on Gross Sales, exclusive of GST. Return on investment Operating profit is determined by many factors, including operation, location, gross sales, occupancy costs, wages &other miscellaneous costs and most importantly, the commitment of the Franchisee. Estimated Establishment Costs (Based on a 120m to 200m store) FRANCHISE FEE Site Selection Fee Training Fee Opening Promotion Stock purchases Packaging Memberships & subscriptions UTILITIES, etc. Electricity Gas Telephone & Fax lines Printing and Stationery Licensing costs PREMISES COSTS Rental in advance Bank Guarantee 3 months gross rental Other Uniforms VEHICLE COSTS Signwriting FITOUT& CONSTRUCTION Design fee & Drawings ) Fitout of Store ) Equipment RISK MANAGEMENT Security Premises & equipment Insurance PROFESSIONAL FEES Accounting Legal Patents Company Formation Expenses PROFESSIONAL TRAINING OWNERS Professional development Staff training - Salaries WORKING CAPITAL Low $ 40,000.00 $ 8,000.00 $ 10,000.00 $ 5,000.00 $ 6,000.00 $ 1,000.00 $ 3,000.00 $ 9,000.00 $ 2,000.00 $ 213,000.00 $ 85,000.00 $ 500.00 $ 1,000.00 $ 2,000.00 $ 1,000.00 $ 3,000.00 $ 10,000.00 Medium $ 40,000.00 $ 8,000.00 $ 10,000.00 $ 7,500.00 $ 8,500.00 $ 1,000.00 $ 6,500.00 $ 19,500.00 $ 2,000.00 $ 280,000.00 $ 92,000.00 $ 600.00 $ 1,250.00 $ 2,250.00 $ 1,000.00 $ 3,500.00 $ 15,000.00 High $ 40,000.00 $ 9,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 1,000.00 $ 18,500.00 $ 55,000.00 $ 2,000.00 $ 350,000.00 $ 100,000.00 $ 700.00 $ 1,500.00 $ 2,500.00 $ 1,000.00 $ 4,000.00 $ 20,000.00 TOTAL $ 399,500.00 $ 496,100.00 $ 635,200.00 The above figures are excluding GST

18 of 22 Ten Good Reasons To Join Us 1 You are instantly buying into a successful operating business with over 8 years of experience in the fast food industry. 6 New York Minute already has a well-established brand name and strong reputation. 2 New York Minute have well tested Marketing and Advertising strategies to increase awareness of your franchise, as well as access to information relating to new products and opportunities. 7 New York Minute provides each franchise group purchasing power, business systems, and professional assistance with every aspect of developing and growing your own successful business. 3 New York Minute provides a quality product with a high demand, good margins and good returns. This is a great chance to build your own business and create wealth. 8 The New York Minute Franchising Pty Ltd is unique in the fast food industry. 4 New York Minute is based on the Franchisor s extensive restaurant background, with sound principles and practices. All products are being continually tried and tested. 9 Anthony Crowther is passionate about the success of your New York Minute store. The better you do, the stronger the New York Minute brand becomes. Franchises generally have a greater success rate than most independent small businesses, and it is normally easier to gain access to capital for a franchise. 5 10 New York Minute provides comprehensive training, operation manuals and ongoing support to Franchisees.

19 of 22 FAQ s Do I need previous experience in the hospitality industry? Yes/No. While it is beneficial to have some hospitality and or customer service experience, it is not essential. People from all backgrounds can become successful Franchisees as long as they have the passion to succeed and an interest in great quality food. New York Minute provides comprehensive training and support, so all you need are people skills, financial stability, a willingness to learn, enthusiasm for the concept and a real commitment to succeed. If I take up a New York Minute Franchise, what will the initial start up cost cover? The initial cost covers most things required to get your business up and running, including the Franchise fee, plant and equipment to New York Minute specifications, rights to use relevant New York Minute trademarks, materials, and training. Information is provided on page 17 of this document. What other costs will be involved? New York Minute will provide you with a comprehensive schedule of estimated costs, which will vary depending upon the location. How many hours a day will I need to work? Your New York Minute franchise Agreement requires your business to operate on a full-time basis, but the amount of time you put in will determine the level of reward. Initially, as with any small business, more time is needed to set up and become familiar with the operation. Usually within six months, the hours become more regular. Should I be involved in day-to-day operations of my business? Yes, all New York Minute franchisees need to be owner operators. What if I need assistance with something? New York Minute has an experienced management support team to assist you with any queries or problems you may have. The Franchisor will visit you regularly to provide product updates and any reasonable assistance you may need. Assistance is only a phone call away. Am I responsible for employing staff? Yes. Your Franchise Agreement gives you the opportunity to employ your own staff, but if you have any problems, the Franchisor can offer advice. Feedback from present and past team members is generally obtained to maintain good staff relations.

20 of 22 FAQ s cont... What about training staff? New York Minute provides each Franchisee with full training detailing products, the business concept, and business systems. There is excellent ongoing Franchisee training programs and comprehensive, easy-to-read operation manuals. What about advertising and promotional programs? In addition to the Advertising Levy used to benefit all Franchisees and the brand, each Franchisee is expected to spend approximately 1% of their turnover on local self-promotion and marketing. New York Minute management can advise and assist with campaigns and strategies. How does New York Minute assist in site selection? New York Minute has appointed a retail expert with ongoing relationships with real estate and shopping centre developers and who assists with location identification. They provide tools for reviewing sites formulated with experiencebased criteria; provide consultation regarding location, visibility and demographics. What about the design and set-up of the business? The store will be designed by New York Minute Designer or Architect, based on previous experiences with store construction. Several quotations will be obtained from Approved experienced Shop fitters for the fit-out works, prior to any works being approved. The franchisee will be involved in the process & selection of the Approved Shop fitter. Is financing support available? Yes. While New York Minute does not offer financing themselves, they are pleased to discuss third party financing recommendations and can provide much of the documentation about the business opportunity to support your application. What about the term of the franchise agreements and franchise fees? The standard New York Minute franchise term is 5 years with one additional option term of five years; however this could vary because of Lease terms negotiated with Landlords. Franchise Royalty Fees are payable weekly and are used for ongoing support of New York Minute franchisees by New York Minute head office.

21 of 22 How To Get Started Purchasing a small business is one of the biggest decisions that most people will ever make. We re happy to provide information about our business system and concept so that you can see what is involved in becoming a Franchisee. Your next step is to request the Disclosure Document. Because it contains sensitive commercial information, you ll need to first sign a Confidentiality Agreement. 1. Complete the two forms in this franchise kit: Complete the Franchise Application. This form requires some personal details so that we can assess whether a New York Minute franchise is the right option for you. Your personal details are protected in accordance with the Privacy Act 1988. Complete our Confidentiality Agreement. This form protects the New York Minute franchising system and the investment made by other franchise owners. These documents allow us to provide you with confidential information and assess your suitability to become a Franchisee. It does not commit you to buying a New York Minute franchise. 2. Return both completed forms to Rori Kokken of McDonnell McPhee and Associates PO Box 2087, Camberwell West, Vic 3124 We will then contact you and arrange to provide you with a more detailed business overview. Email: ramcdonnell@iprimus.com.au 3. A meeting will then be arranged to meet the Directors for an informal chat. 4. When you have paid a refundable deposit, You will receive the Franchise Agreement and a Disclosure Document that contains details about the franchising opportunities available and the company. We can provide information and estimated costings for the particular area/outlet of interest and other information. 5. We recommend that your solicitor and accountant look over the relevant documents so that all questions are answered and the potential for misunderstandings is eliminated. We invite your solicitor and accountant to contact us directly regarding any queries. 6. Execute the Franchise Agreement and Disclosure document, pay any outstanding fees and arrange initial training. Email: Rori.mcdonnell@gmail.com Web: www.franchiseconsulting.net.au

22 of 22 (Read only) Important Privacy Information Please read this information prior to completing the Franchise Application Form and Deed of Confidentiality. New York Minute Franchising Pty Ltd supports the Privacy Act 1988 and the associated National Privacy Principles. You have various rights under the National Privacy Principles, including the right to access any information provided to New York Minute. This information is being collected only for the purposes detailed and implied in the New York Minute Franchising Pty Ltd Franchise Application and Deed of Confidentiality. By completing this initial Franchise Application and/or Deed of Confidentiality, you consent to this use. This information will not be used for any other purposes without your full consent. New York Minute Franchising Pty Ltd will not divulge any personal information to any person or organization unless we are obligated by law to provide that information. Anthony Crowther New York Minute Franchising Pty Ltd This confidential information will be used to assess your suitability as a franchisee. This information will not be used or disclosed for any other purpose without your prior approval and at your request will be destroyed or returned to you if your application is unsuccessful. This application does not oblige either party in any way. Please complete these forms neatly in your own handwriting in black ink. In addition, please attach a current resume for yourself and Partner(s). New York Minute Franchising Pty Ltd is selected on the basis of experience, character, integrity, financial stability and general suitability. Please make sure all information is accurate and truthful. Append further information if required.