What is Franchise Agreement?

This contract details the relationship between the franchiser and franchisee and their obligations to each other and to the business.

The franchise agreement is a document that lays down the terms and conditions ofthe franchise and the obligations of the franchiser and franchisee to each other and to the business. There is no legislation governing franchises so far, and this means the terms set out in the contract are all that the parties have to go by in determining their relationship.

Nature of the contract. The contract begins by describing briefly the nature of the franchise, its trademarks, know-how, copyright, and who owns them. While the franchisee is the legal owner of the business, the franchiser retains control over the way the product or service is presented to the customer and, quite possibly, over the day-to-day procedures in running the business.

Term or duration of the franchise. There is no specific time required to operate a franchise, but it is ordinarily long enough to allow the franchisee to recover his or her initial investment. There is also usually an option to renew the contract when it expires, but the franchisee is usually expected to agree to the same terms being offered to new franchisees at the time of renewal.

Territorial rights. It is quite common for franchisers to offer exclusive rights to a territory to give the franchisee an incentive to exploit a promising market.

Fees. The franchise agreement sets down how much a franchisee pays for the package-including the management fees or royalties-and what he or she gets in return. The timing of these payments and how the payments are calculated should be stated plainly in the agreement.

Obligations of the parties. This section of the agreement sets down the do’s and don’ts governing the relationship between the franchiser and the franchisee. Typically, the franchiser is obliged to train the franchisee’s staff and to provide equipment, manuals, advice and help. On the other hand, the franchisee is obliged to protect the franchiser’s reputation and goodwill, hence the agreement lays down the standards expected of him or her in operating the franchise.

Termination. Though both parties will set out to see the contract through to its full term, circumstances may force either to terminate the agreement. In case the franchisee violates any of the terms of the agreement, the franchiser may terminate the agreement for cause by giving a written notice to the franchisee-usually not less than 30 days before the date of termination-and stating the reason for the termination. If the cause of termination can be remedied, then the franchisee may do so within the 30-day notice and expect the franchiser to withdraw the notice of termination once he or she has done so.

In case either of the parties decides to end the agreement for any reason, theagreement should provide for a refund of the initial investment in whole or in part and to compensate the franchiser for the trouble caused.

Dunkin' Donuts

Dunkin Donuts have no doubt become one of the most successful and patronized donutfranchise Philippines. Serving both Coffee and Baked Goods since 1950’s and originated in Massachusetts. The famous Dunkin Donuts was founded by Bill Rosenberg which succeeded so rapidly that it now serves more than 3 million customers per day, and what’s even more amazing is that they’re now open for Franchise here in the Philippines.

The brand had been so successful here in the Philippines that it became quoted as the “Pasalubong ng Bayan” it got engraved in the minds of Filipinos and most especially to the kids who couldn’t resist those sweet and delicious donuts that they offer. They serve over 52 varieties of donuts and more than a dozen coffee and beverages as well as breakfast and sandwiches that are sufficient enough to satisfy their customer’s needs. One of their popular flavor is the Bavarian which tastes so well that it became one their most selling product.

Why Dunkin Donuts?

Not just because of their untainted success in the Philippine Market, it is also best to invest in the said Franchise because it is cheaper than any other Franchises out there, having the lowest cost of P200,000 it is perfect for those who are just starting out with very limited budget at hand. Not to mention that they really made it cheaper to Franchise here unlike in America where you’ve got to have $250,000 liquid assets and $500,000 net worth to open your own branch.

Who owns and runs the Dunkin Donut Empire?

Golden Donuts Inc. is actually the one who executes all Dunkin Donuts Franchises, they have been doing so well enough that the brand is growing more and more popular and competitive at the same time. The experience they’ve gained throughout the years have made them more reliable that they are confident enough to teach on those who are willing to join their business venture. Franchisees are ensured with the warmest support they can offer, they will provide you with trainings so that you will be successful like them.

Here are the things that they will offer you upon transacting with them:

Training Program

This is how they will prepare you before you actually run your own store, this will include trainings such as Production training wherein you will be taught how the product is made, Store Operations Training wherein you will be tested and train on how to handle the daily operations of your franchise, Local Store Marketing Training wherein they will teach you business strategies you can use to improve your business and sales.

Quality Assurance Assistance

They will guide you throughout the entire phase of you starting business; provide you with great support that you will never feel left out or alone in running the newly established business.

Site Selection Assistance

If you don’t have any site in mind yet but really into starting your own Dunkin Donuts Franchise, don’t be alarmed for they will also help you find a suitable spot for your business.

Marketing and Promotional Support

-Aggressive National and Local Marketing Efforts
-New Products
-Grand Opening Assistance

Continuing Guidance from Consultants

Feel at ease because they will never leave you, their consultants will check up on you and your sites progress from time to time, giving out tips and pointing out things that can improve your business further.

Requirements:

- Letter of intent containing full contact details and address of the proposed site you have in mind.
- Vicinity/Site Map of the area of the said Site
- Photos of the Site for review and assessment purposes

Upon completion of these requirements, send them to Business Development Division, Golden Donuts Inc.

Frequently Asked Questions

Q: How much do I need in order to start my own Dunkin Donuts Franchise?
A: As stated above, you only need as low as P200,000 to start your own Franchise but bear in mind that it varies depending on the stores concepts.

Q: Do I automatically get approved once I’ve submitted the required documents?
A: No, because they will still review the documents you submitted and they will still have to evaluate whether your proposal is feasible. Factors that might affect your approval will be the Site/location of the prospective outlet and the level of its competitiveness, Personal qualifications of the applicant in terms that will he be able to comply with the Franchisor’s demands and expectations.

Q: Are they also the ones who would hire employees for my Franchise?
A: No, it is the franchisee’s duty to hire his employees for the franchise but Dunkin Donuts will assist him in recruiting them, they will also provide necessary training programs for your employees to ensure that they would meet the Dunkin Donuts Quality Standards.

Q: What are the terms of agreement?
A: This also varies from one franchise to another, though contracts are renewable in a term by term basis upon the Franchisee’s compliance with renewal criteria and how well he manages and operate the certain Franchise prior to its renewal.

Q: Will they also be the ones in charge of the construction of the building?
A: No, it is the franchisee’s duty to prepare the building plan upon approval, he must consult and look for an architect and construction should be discussed by the contractor and the Franchisee only. Golden Donuts Inc., who owns the Dunkin Donuts Franchise will provide them guidelines in which they should follow for the building plan. Golden Donuts Inc., however if the franchisee couldn’t find any architect or contractor the corporation might lead him to their own and trusted contractors just as long as they make sure that they meet the standard constructions guidelines of Golden Donuts Inc., but bear in mind that the Franchisee should have enough budget to cope with the construction of the Franchise.

So what are you waiting for? Be a part of their successful business venture and apply for a Dunkin Donut Franchise now. Have one set up in order to boost your income and provide the people around you with a box of Dunkin Donuts which surely will be able to provide them satisfaction and delight.

Since it opened its doors to the Philippines in December 2000, MINISTOP has always envisioned becoming the leader in theconvenience store industry. MINISTOP has made its presence felt by being the community’s warmest and friendliest modern combo store. It takes pride in its wide range of quality products, at affordable prices and value-added service.

Merits of MINISTOP Franchise System

• Small capitalization required
• Independent entrepreneurial management
• Business experience not necessary
• Full Franchiser’s support thru training programs, advanced business systems,distribution center and store operation guidance
• MINISTOP assists by investing key equipment and operating cost.

How to Franchise

1. Send a Letter of Intent .
2. If you have a proposed site, fax a vicinity map or sketch of the site with details, i.e store size, for a feasibility study.
3. Email and/or Fax these documents to:

Franchise FAQ

Q: How much is the initial investment?
A: The initial investment varies form Php 1.4 to 3 Million depending on the business package. The different business Packages are the STANDARD TYPE, STANDARD LEASE TYPE (SL), and MASTER LEASE TYPE (ML).

Q: Who chooses the location?
A: Ministop chooses the locations and offers them to the Business Partner according to the latter’s area or residence. The Business Partner can suggest sites, but these must first undergo a feasibility study by our Store Development Division.

Q: What is the ideal requirement of the store?
A: Ministop works better in a 100 to 120 square meter area, given our tested functional and practical aspects of store size.

Q: What makes a viable location?
A: A viable location is near offices, condominiums, universities, hospitals, residential areas, and main roads with high pedestrian foot traffic and beside tricycle, jeepney, or bus terminals.

Q: How long is the contract agreement?
A: The contract agreement between Ministop and the business Partner is 10 years.

Q: How long is the Return on Investment (ROI)?
A: The ROI is dependent on the sales, location, and management of the Business Partner. Based on the experience of our existing Business Partners, the average ROI is 3 to 4 years.

Q: What training do I receive?
A: Ministop will provide a one-month initial training program for the Business Partner. This program includes the managerial, operational, and accounting standards of Ministop.

Q: Who hires the store personnel?
A: the Business Partner gets to hire his/her own store personnel, preferably people whom the Business Partner knows and trusts personally. Should there be problems in completing the standard 9-personnel team, the Business Partner can seek assistance from Ministop’s Human Resource Division.

Pizza Hut Franchise

Pizza Hut Franchise came to be when two enterprising college students named Frank and Dan Carney borrowed $600 from their mom in order to open a small pizza restaurant in their hometown in Wichita, Kansas during 1958. The two focused their attention and time to their newly established business, making sure that they only use the freshest meat and vegetable as toppings in every pizza they serve. It wasn’t long that they’re efforts were rewarded, they were able to open another store by December and by 10 years time, they were able to reach over 300 restaurants under their name.

As of today the Pizza Hutfranchise brand serves over a million pizzas for each day and has more than 12,689 restaurants in over 88 countries which made them the No.1 Pizza Brand in the world.

By the time of 1984, Pizza Hut’s rapid expansion has reached the Philippines. Starting to fill in the great demand of Filipinos craving for good quality Pizza, Pizza Hut was able to rise as the most popular Pizza Chain in Manila and its surrounding provinces and later on expanding to other regions such as Visayas and Mindanao.

Perhaps Pizza Hut’s success can be attributed to its unique concept of casual dining yet classy theme rather than sticking to the typical plastic and tiles fast-food theme, using sleek wooden furniture, ambient lighting, and providing a warm and very sophisticated atmosphere which gives you a one of a kind experience.

Pizza Hut’s pizzas are made with fresh dough which are baked in a daily basis, a special and secret blend of tomato sauce, fresh and tender meat toppings, crunchy and healthy vegetables, not but not the least a double layer of imported Mozzarella Cheese. During the recent years Pizza Hut has also made a great innovation to their menu, now being able to serve soups, appetizers such as ribs, smoothies, pastas, desserts and other more dishes that are sure to satisfy your cravings.
Pizza Hut had been very strict in implementing their standards to ensure that every customer gets the best value out of their money, emphasizing product quality, good service, cleanliness and value. They have also allotted vast amounts of money to ensure that every single one of their crew members are trained to make the customers feel well appreciated, they enforce them with courtesy, attentiveness, respect, and enthusiasm to serve.
There is no doubt that Pizza Hut is had become one of the largest and most famous Pizza Serving Restaurants all over the world. Being a part of the famous Yum! Brands, they’ve grown more and more successful as the years pass by.

Multibranding

Yum! Brands is the leader of multibranding, which offers cosumers more choice, convenience and value all at the same time by combining two of any of their brands under a single establishment. Multibranding has changed the landscape of fast food service in the United States having more than 3,900 company and franchise-owned multibrand restaurants worldwide. Multibranding allows you to combine two of their brands in a single franchise, for example a Pizza Hut + WingStreet. This strategy has been proven to increase the profit of the Franchisee than that of a normal franchise with a single brand.

What benefits would I gain upon joining Yum! Brands?

Having many other Franchising options and companies out there, finding one which a provides real value is quite a difficult task. Here at Yum! Brands, we assure you that you’re in good hands, we will provide you economic stability in terms of the brand recognition and growth opportunity that gives back to the community. Upon signing up with us you will be accredited and given rights of by the following:
Brand Recognition Customer Attraction to boost your sales performance Competitive Advantage upon bearing our brands which are very well known throughout the whole world Franchise Value System Multi-Unit Growth Economic Stability Brands that give back to the community, be it in terms of charities, foundations and other more Development Expertise which are based from handling different successful brand names all at the same time Access to Financing Solid Business Support to make you feel more secured Quality On-Boarding & Training Reliable Supply Chain Return on Investment What Yum! Brands is looking for in Franchisees?

Yum! Brands had been so successful yet wishes not to stop there, they are offering every individual who meets these requirements to join their business venture and look for better ways to improve. See for yourself if you’re the one they’re looking for:
Has passion and determination to start and run a hands on business which requires certain amount of attention and time. Should be committed to finding ways for further innovations and improvements Posses great leadership skills and knows how to motivate his team/staff to be more productive. Should be Business Minded Should be Success Driven, and Goal Oriented Has the Capability to Fund his own Franchise Understands the risks yet has a firm determination to proceed with running his own Franchise How Much will I need to open up a Franchise?
Details are to be further discussed if you were chosen to be a part of their growing empire after application, but do note that you should have at least $360,000 in liquid assets to be able to start your own Franchise.

Does Yum! Brands allow corporations to Franchise?

Yes they do, but you should have the majority share of the said corporation and the minimum liquid asset requirement should be met.

Can I apply for a Pizza Hut Franchise even if I don’t have any experience in running a restaurant?

Yes you can still apply for a Pizza Hut Franchise, they will train you before actually letting you run and manage your own store. The training should be enough to let you know and have you learn what is needed to run your own Franchise. It will include various types of strategies and tips so that you’d be off to your own feet in no time, but do note that the Yum! Brands will always be there to back you up in terms of their 24 hours Support Team in which you can freely consult for your worries.

Common Frachise Problems Today

      Franchising is said to be a partnership between the franchisor and the franchisee. Like any other relationship, problems do exist, so with franchise. If will not be solve the problem immediately, it may worsen.

Not because franchising is less risky, you will no longer experience problems with it. Michael Hemenway, founder and CEO of brand EXPANSION (a United States-based firm that deals with all aspects of franchising) says “Everyone buys a franchise with the ultimate aim of succeeding as a franchisee.” In fact, most people thought that franchising is a quick-money return business and has the assurance of success rate. Which simply shows that some people still don’t understand franchising even though they already have it. Keep in mind, the key to have a successful business is to work hard, and being optimistic.

Some entrepreneur says that franchising is like a marriage that bind with at contract. I agree with it! In marriage you have to be loyal, and respect each other. However in franchising, the contract binds the franchisor and franchisee, with respect, trust and loyalty as a business partner. If one of these quality break down, problem begins.

One common problem in franchising is the communication. “Communication is at the core of every franchisor-franchisee relationship,” says Steve Whiteside, an entrepreneur and consultant for franchise organization. If one will not communicate well with his partner, probably this can cause problem, especially if its a business matter. And so, most franchisors try to build a rapport the moment they meet their franchisee for the first time. Communication barrier sometimes a hindrance to build a good communication and work together effectively.

The Expectations and Perceptions

What do you expect in putting a franchise business? Or what are your expectations about your franchisor/franchisee? You may think of so many expectations in your mind, but the real expectations of the relationship start to form at the first meeting between the potential franchisee and the franchisor.

Some people expect that franchising can make them rich in just a short period of time. I may say that there is no assurance on that. Once you expect for something, it must be in a positive side. Partnership works at this time. Communicating with each other and both aiming high for the business is useful. As long as you are with a good franchisor, and you are doing your part as a franchisee with focus, so no reason to fail, just be optimistic.

Communicate Effectively

Communication barrier arises when franchisees feel they are not on equal footing with franchisors. Things are always unequal if one party feels that its input has no sway or power to influence. Poor communication cause trouble between franchisee and franchisor. It is very important that both parties receive what each other wants to say. Even in franchisee-staff relationship, communication is very essential. You better prioritize the information going in and out. If problem occurs between you and your franchisor, try to discuss it formally and be professional.

Building Trust

Before signing in a franchise, always remember that you are entering a relationship with your franchisor, which trust is required. If there so many hidden agendas or your instinct tells you that something is wrong, you might be a victim or franchise scams. However,trust is earned and not comes naturally in each and everyone of us.

Trust is one of the most important element in a relationship to work, without it, there is no way to ground the relationship, and so communication may break too. In franchising, trust is important not because of the money involve, but its your passion or willingness to put a business.

It all starts from the first meeting between the franchisor and the franchisee. Once trust is applied to the relationship, effective communication follows and so on. Together with a proper support from the franchisor, hands-on franchisee, focus, patience and being optimistic, then your franchise will somehow be successful. Just bear i mind that, “never break the trust that you earn.” Once it break, it is difficult to bring it back, and conflict may occur if trust is missing in a relationship.

What is Franchising?

      One of the best business opportunity. Franchising is the business practice of using one company's successful business model. It means, taking advantage of a business that's already proven to profit and have been tested in the real world. The word 'franchise' is of Anglo-French derivation - from franc- meaning free, and is used both as a noun and as a (transitive) verb. For the franchisor (original owner of the business), the franchise is an alternative to building 'chain stores' to distribute goods and avoid investment and liability over a chain. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.