Initial assistance provided by Broccoli Pizza & Pasta will include the following franchisee training programs:

 

Phase I — Training provided at a location designated by Broccoli Pizza & Pasta: It is expected that Broccoli Pizza & Pasta Management will provide franchisees with approximately 10 to 14 days of initial training at Broccoli Pizza & Pasta headquarters or at a location designated by the Broccoli Pizza & Pasta Management, beginning approximately 6 to 9 weeks before the franchisee is scheduled to open for business. Phase I instruction will pertain to administrative, operational, and sales/marketing matters; it will also include a liberal amount of on-the-job training. This training will be provided for the franchisee (“or” manager) and one (1) to two (2) designated attendees.

Phase II — Training provided at the franchisee’s location: On-site training typically takes place when the franchisee commences operations. Experienced trainers from Broccoli Pizza & Pasta will provide on-site training for a period of 3 to 7 days to assist the franchisee in the commencement of operations.

Broccoli Pizza & Pasta : the franchisee and one (1) designated attendee are getting trained for 10 days at Broccoli Pizza & Pasta training center. franchisee and two (2) designated attendee are getting trained for 14 days at Broccoli Pizza & Pasta training center requiring air travel, food, and lodging and the franchisee paying a training salary to the employees.

No franchisee should be allowed to commence operations until the franchisee has successfully completed Phase I of the initial training program. The franchisee should not be permitted to continue operations until successfully completing Phase II of the initial training program. If the franchisee fails to meet the initial requirements specified by Broccoli Pizza & Pasta Management, Broccoli Pizza & Pasta Management may, at its option, require the completion of additional training or may cancel the Franchise Agreement.

Franchisees may be required to attend up to 3 days of refresher/update training per year in 2 sessions for restaurants outside UAE and monthly for entire restaurants. Space permitting, Broccoli Pizza & Pasta Management should provide the opportunity for franchisees to send additional personnel to refresher training. This training should be provided at no cost, but the franchisee must pay for all applicable travel, lodging, and out-of-pocket expenses.

A member of the Franchisor’s field support staff will visit each franchisee according to the following schedule:

First Year:

Once to twice every month

Thereafter:

Once every month

A member of Broccoli Pizza & Pasta Management field support group should visit each franchisee on regular basis according to a preset schedule. It is estimated that Broccoli Pizza & Pasta Management will need to hire one field supervisor for every maximum 20 units in the field. Broccoli Pizza & Pasta Management should incorporate a formalized mechanism for ensuring quality control among franchisees that will be implemented by these field supervisors. Designated staff members should perform supervision of field support duties.

In addition to field support, members of Broccoli Pizza & Pasta organization should provide the services listed below. Broccoli Pizza & Pasta Management should assign a specific person to cover each of these support areas (one person can be assigned to more than one task). The names of support staff members who are officers, directors, or have significant management responsibility in conjunction with franchisees should be disclosed. Broccoli Pizza & Pasta Management has the responsibility to assign a person/people to each task during the development of the franchise program.

A member of Broccoli Pizza & Pasta Management field support group should visit each franchisee on regular basis according to a preset schedule. It is estimated that Broccoli Pizza & Pasta Management will need to hire one field supervisor for every maximum 20 units in the field. Broccoli Pizza & Pasta Management should incorporate a formalized mechanism for ensuring quality control among franchisees that will be implemented by these field supervisors. Designated staff members should perform supervision of field support duties.

In addition to field support, members of Broccoli Pizza & Pasta organization should provide the services listed below. Broccoli Pizza & Pasta Management should assign a specific person to cover each of these support areas (one person can be assigned to more than one task). The names of support staff members who are officers, directors, or have significant management responsibility in conjunction with franchisees should be disclosed. Broccoli Pizza & Pasta Management has the responsibility to assign a person/people to each task during the development of the franchise program.

  • Operational Support Broccoli Pizza & Pasta Management should provide ongoing training and support in many areas critical to the success of the franchisee’s business, including unit operations and maintenance, customer-service techniques, product ordering, suggested pricing guidelines, and administrative procedures. “Training Manual”

  • Site Selection Prior to approving a site for Broccoli Pizza & Pasta outlet, Broccoli Pizza & Pasta Management should provide franchisees with clear guidelines for a suitable location. Broccoli Pizza & Pasta will require franchisees to follow these instructions to ensure that an appropriate site is located.

  • Marketing Support Broccoli Pizza & Pasta Management should coordinate development of advertising materials and strategies for the benefit of all members of the franchise network. It should also supply franchisees with consumer marketing plans and materials for use at the local or regional level, and retains the right to approve all local advertising materials that the franchisee chooses to develop.

  • Purchasing Broccoli Pizza & Pasta Management or its affiliate should negotiate quantity discounts on behalf of all of its members, passing some or all of these savings on to the franchisees.

  • Accounting/Audit/Legal Reporting directly to administration, this department is responsible for the financial and legal oversight of franchisees.

  • Internal Support The functional areas of training, purchasing, franchisee communications, and research and development are typically included in such a department.

  • Ongoing Research and Development Broccoli Pizza & Pasta Management should continue to research methods and techniques for franchise operations (including purchasing and promotional schemes) that enhance unit-level profitability.

  • Overall Program Oversight  Broccoli Pizza & Pasta Management should provide the overall coordination and planning for the Broccoli Pizza & Pasta franchise system.

Required Business Opening Schedule

It is expected that a typical franchisee will require an average of four (4) months to implement and open for business once the location has been secured.

It is, however, expected that the entire process from the date of signing the agreement to take a total of six (6) months due to location scouting and securing of operating permits, and other factors not in full control neither of Broccoli Pizza & Pasta Management or the franchisee.

DESCRIPTION LOW HIGH
400 sq.ft @ 200.00 /sq.ft 1,500 sq.ft @ 400.00 /sq.ft
Real Estate/Rent (Based on 6 months) 40,000.00 300,000.00
Utility Deposits 1,000.00 5,000.00
Leasehold Improvements 120,000.00 375,000.00
Furniture, Fixtures, Equipment, and Décor 210,000.00 350,000.00
IT & POS Hardware & Software 10,000.00 20,000.00
Vehicle 18,000.00 27,000.00
Initial Inventory 15,000.00 30,000.00
Insurance 2,000.00 5,000.00
Signage 23,000.00 40,000.00
Office Equipment & Supply 3,000.00 5,000.00
Grand Opening 5,000.00 10,000.00
Licenses & Permits 6,000.00 17,000.00
Dues & Subscriptions 1,000.00 1,000.00
Legal & Accounting 6,000.00 10,000.00
Others (staff visas) 21,000.00 28,000.00
Working Capital 100,000.00 150,000.00
TOTAL BEFORE FRANCHISE COSTS 581,000.00 1,373,000.00
= =
AVERAGE 977,000.00
=
Training 16,000.00 29,000.00
Franchise Fee 45,000.00 45,000.00
TOTAL WITH FRANCHISE COSTS 642,000.00 1,447,000.00
= =

Each franchisee will be required to commence operations within a maximum of six (6) months of signing the Franchise Agreement. Broccoli Pizza & Pasta Management will reasonably extend this limit based on individual circumstances.

INITIAL INVESTMENT

Individual Broccoli Pizza & Pasta (subsequent outlets)

  • Real Estate/Rent: The high end of the initial investment represents a 6 months rent payment at an approximate lease rate of AED 400 per square feet for a 1,500 square feet outlet. The low end represents a 6 months rent payment at a lease rate of AED 200 per square feet for a 400 square feet outlet.

  • Utility Deposits: A utility deposit may typically be required only if the franchisee is a new customer of the utility company.

  • Leasehold Improvements: A range from AED 120,000 to AED 375,000 were used as the low and high costs of leasehold improvement for a Broccoli Pizza & Pasta outlet; including outlet, painting, plumbing, carpentry, electrical work…etc.

  • Furniture, Fixtures, and Equipment: Although very little of these items may be leased, the range shown represents the actual purchase price.

  • Vehicle: This represents the costs of cars.

  • Initial Inventory: This represents the initial inventory required for a single outlet. The range shown represents the costs of 3 months operation when it comes to food items. Non-food items and printed materials were considered a batch delivery.

  • Insurance: An annual premium for general insurance costs is included.

  • Signage: The range of costs represents the outright purchase of all signage on the franchised locations.

  • Office Equipment and Supplies: There is a range of expenses that will be incurred when purchasing office equipment and related supplies. Both the low end and the high-end numbers represent a straight purchase of all supplies and equipment.

  • Grand Opening: Franchisees will be required to spend around AED 5,000 to AED 10,000 on grand opening advertising.

  • Licenses and Permits: It is expected that expenses for licenses and permits will range between AED 6,000 and AED 17,000. Annual cost of registration and trade license is considered 5% of rent.

  • Legal and Accounting: Professional fees are estimated to range around AED 6,000 to AED 10,000.

  • Working Capital: The low number given represents estimated expenses to maintain minimal operations without any sales for two months. The high end represents estimated expenses for three months.

  • IT& POS Hardware & Software: A POS system for a food service operation will be required, in addition to an accounting program.