ANSWERS TO IMPORTANT QUESTIONS ABOUT OUR FRANCHISE OPPORTUNITY
Q1 What is the minimum Equity / Capitalization ratio?
The normal ration is 50%. This means the franchisee needs to come up with his own capital equivalent to 50% of the total investment needed. The other 50% can be from borrowings from the normal sources.
Q2 Do you have an F&B supply house?
In many states of Malaysia, we have F&B supply house except for supply of certain controlled items and proprietary products.
Q3 What is the duration of the Franchise?
A Franchise Agreement is issued on each unit for 15 years, with an option to renew for another 5 years. A renewal fee of 2.5 percent of the average annual gross sales of the 14th and 15th year of the franchise will be required to help cover our legal costs, and other costs.
Q4 Will SugarBun provide site and construct the building for me?
Each Franchisee responsible for securing his or her own land and building. All potential sites must be submitted to SugarBun for written acceptance. You may choose or purchase or lease the land and construct the building. Or you may secure a lease in which the landlord construct the building for you to our specification.
Q5 How much is the initial franchise fee?
The Franchise Fee for a single unit is RM60,000.00. For multi-unit franchisees, the initial franchisee fee will be decided by the Franchisor and the same goes for area development franchise.
Q6 Is there any fees involve?
Yes, there will be an Initial Advertising Fee of RM15,000.00 for Pre and Post Opening activities. Monthly recurring fees to be paid to the franchisor:
(i) Royalty Fee of 4% of Monthly Net Sales (excludes 6% GST).
(ii) Advertising Fee of 3% of Monthly Net Sales (excludes 6% GST).
Q7 Is the Franchisee required to purchase all his equipment and supply needs from SugarBun?
SugarBun has approved equipment suppliers which are based on their ability to offer competitive pricing, service and support for our corporate-owned locations and franchisees. The Franchisees, may, of course, choose to purchase equipment from other approved sources. Quality specifications on equipment are provided to allow the Franchisee to purchase goods meeting these standards and specifications in the open market.
Q8 How much money can I expect to make from a SugarBun Franchise?
Many factors must be considered in determining potential earnings and profits. No warranty is implied in any projections or estimates when given by any SugarBun personnel. Prospective franchisees are advised to do their owkn study and evaluations before maling any commitment.
Q9 Is expensive in the food or restaurant industry required to become SugarBun franchise?
No. Although a food service background is always helpful; however, if you're inexperienced SugarBun has complete training programme for Franchise and management personnel. We also povide proven, successful operating procedures for you to follow.
Q10 What type of training do I receive?
Because of our commitment to your success, SugarBun has designed a thorough franchise training programme. This programme consist of both classroom training at our Corporate Training Center and on-the-job training at one corporate owned restaurant. We also provide on-location opening assistance at the restaurant. These training and assistance are included in your initial franchise fee. However, you are responsible for any expenses incurred for transportation, food, lodging and employee salary, if applicable.
Q11 How many people can I send and for how long?
SugarBun requires the Franchisee or the managing principal (in the case where the Franchisee is a corporation) and 2 designated managers and 2 supervisors ( who must pass Franchisor selection citeria) to attend and complete the training programme for a minimum of 3 months and maximum period of 6 months.
Q12 Some companies place limits on the number of franchisees each can open What's the SugarBun policy?
Normal approach would be thropugh the establishing of single unit restaurant. But SugarBun encourages the ownership of multiple unit concept through which territoral rights are granted. Upon successful development of the single unit franchise, Franchisee can apply for area development franchise.
Q13 Will SugarBun franchise to corporation?
Yes. SugarBun will franchise to corporation and individuals as well. Franchise principals must own at least 75% and personal guarantees will be required.
Q14 When should I sign the Preliminary Agreement?
When you have decide that a SugarBun franchise is the right business venture to go in, the commitment entails an initials payment of RM10,000.00 (Non-Refundable) upon signing of the Letter of offer and balance of RM50,000.00, upon signing of the Franchise Agreement respectively. The franchise agreement is normally signed one month before the restaurant opens for business.