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| Q: |
What are your expansion plans for North America?
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| A: |
We presently have 11 locations in Canada—9 in Quebec, 2 in Ontario. We have 4 locations in US and 2 in India. Our aim is to have at least 200 locations in the next 10 years. |
| Q: |
What are your criteria for a potential franchisee?
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| A: |
Obviously, we look for individuals with sufficient capital to invest. We also look for entrepreneurs who want to get involved in their business, and definitely have a passion for people and food.
Food service and/or retail experience though desirable, is not mandatory.
One must keep in mind that a potential franchisee should qualify with both lenders and landlords.
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| Q: |
Who is your prospective customer?
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| A: |
The Eggspectation restaurant concept has proven attractive primarily to moderate and upper income individuals, ages 18-45, and families. Our restaurants have broad appeal and research has demonstrated that our customer mix is approximately 60% female and 40% male—a very desirable blend. We are known for our upscale casual dining experience and our unique style. Our Customer surveys indicate that distinctive décor, atmosphere, service and variety as well as quality of food are the right ingredients that appeal to most customers. We strive to excel in all these factors and appeal to all. |
| Q: |
What financial assistance is provided?
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| A: |
We do not offer financing. |
| Q: |
Can someone manage the restaurant for me?
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| A: |
Ideally no. However in case of multiple partners, we would prefer that at least one of the partners goes through our training program or a qualified manager approved by us is engaged. The manager will have to undertake our training. |
| Q: |
Who builds the restaurant?
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| A: |
Once the complete design drawings have been approved by us, the tendering process and construction management are the responsibility of franchisee’s approved contractor. During this interim period, we do assist in providing professional consulting in aiding and facilitating this process.
We recommend the services of Andres Escobar & Associates (New York and Montreal), http://www.escobardesign.com, to ensure our standard design for your chosen site. They can collaborate with your architect. |
| Q: |
How long does it take to build a restaurant unit and start operating?
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| A: |
Once an agreement has been signed and a location identified, leased and landlord’s work completed, a minimum period of 4 to 6 months can be expected for obtaining all permits and complete fixturing of the restaurant unit. |
| Q: |
Who does the site selection?
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| A: |
We do the site selection; nonetheless franchisees can propose specific sites for our final approval. We are open to suggestions. Our selection is based on competition, demographic studies, entrance and exit considerations, local traffic counts, site accessibility and visibility. This should also be combined with cost versus expected return.
Our targeted five-mile trade area characteristics are as follows:
- Population 125,000 or more;
- 50,000+ households or more;
- Average household size of 2.5 or more persons;
- Median household income of $50,000 or more;
- High density of office workers (for the lunch trade);
- Strong regional shopping draws; and
- Upscale, premium co-tenants.
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| Q: |
What financial information can you provide regarding a typical restaurant unit?
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| A: |
During the approval process for qualified future business partners, we provide a Franchise Disclosure document that contains information on various matters including investment costs. Though we provide general statistical information regarding sales, we do not and cannot assure a prospective franchisee of specific expectation of sales, expenses or profits, as many variables can affect the financial performance of any Eggspectation franchisee including the state of the market and the efforts and abilities of the franchisee.
We can provide you with a detailed listing of our current franchisees and developers, whom you may contact directly to discuss sales figures or earnings.
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| Q: |
How much does a single restaurant unit cost?
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| A: |
The construction/establishment cost of a restaurant to be built in accordance with our specifications runs between $650,000 and $1,500,000, depending on the size (between 3,500 and 5,000 sq. ft.). The cost varies due to factors like size of the restaurant, whether the site being considered was a restaurant before or not, landlord’s contribution towards leasehold improvements, local labor and material costs as well as the general condition of the site under consideration.
Cost may also vary according to region or country. |
| Q: |
What is the initial franchise fee?
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| A: |
$ 50,000 (USD) in United States.
$ 50,000 (CAD) in Canada
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| Q: |
How much are the on-going royalty and franchise fees?
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The royalty fee is 5% of gross sales. A marketing fee of 2% on a national basis and 1% locally at the restaurant level is standard. |
| Q: |
What on-going support do I get for these fees?
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Our disclosure and/or franchise agreement documents deal with the subject in more depth. In general we provide assistance in the following areas :
- Use of our trade dress and known nationally registered trade marks
- Confidential operating manuals, HACCP training program and field support.
- Plus
- Site selection.
- Onsite assistance prior to and during restaurant opening.
- An initial training program as defined in the franchise agreement.
- Regular visits, evaluations of the Restaurant, products and services provided at the Restaurant to ensure that the high standards of quality, appearance and service of the System are maintained.
- Our prototype restaurant design and consultation provided during restaurant construction.
- With available marketing funds, we plan marketing campaigns on regional or national level.
- Assist in local marketing and advertising for your restaurant unit.
- Advice and written materials (including updates to the Manuals) concerning techniques for managing and operating the Restaurant, including new developments and improvements in equipment, food products, packaging and preparation.
- Training programs, seminars and other related activities regarding the operation of the Restaurant as we reasonably deem necessary or appropriate.
- Certain on-site remedial training when requested and found appropriate.
- The use of our established supply sources, including negotiated prices that could not likely be attained by an independent operator.
- Merchandising support programs, product tie-ins and seasonal promotions to attract new customers, enhance customer loyalty to maximize the frequency of visits.
- The benefit of our Research and Development team that is constantly testing new products and searching for new ideas and better ways to serve customers.
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| Q: |
Are multiple restaurant opportunities available?
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We prefer area development agreements in the United States. On an international level, we are interested in master franchise agreements for a region or a country. For qualified candidates/franchisees who will like to acquire the right to develop multiple restaurants within a designated territory, we offer the opportunity to enter into an area development agreement with us where you agree to develop a mutually agreed upon number of restaurants in accordance with a specified development schedule.
Factors such as population density, demographic data, the number of potential locations for restaurants, and the presence of competition will dictate the number of restaurants to be opened in a particular area.
International master franchise agreement for a given region or country (territory) allows a master franchisee to open and operate multiple restaurants with the additional possibility of sub-franchising within that defined territory. |
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