There are a lot of things to consider before becoming a franchisee. Do you believe in the direction the business is going and are you confident you will get an adequate return on your investment? Is there a natural fit between the culture of the company and your own personal views and beliefs? To help kickstart yourresearch we've put the spotlight on the following franchise.
Crust Gourmet Pizza Bars
How would you define your brand? Crust
fast food pizza franchise provides a consistently healthier, higher quality pizza, delivered on time, every time. From day one, we've been about giving our customers healthier choice and are also committed to using only the freshest ingredients.
How old is the company and when did you start franchising?
Crust was founded in 2001 by Costa Anastasiadis, with the first store opening in Annandale, Sydney. We officially became a franchise business on 1 July 2007.
How many franchises do you have? The company currently has 17 established stores (as at end Feb 2008); 10 in Sydney, six in Melbourne and has recently established a foothold in Queensland with the launch of the first store in Brisbane.
How are you going to grow the business in 2008?
We plan to launch another three stores by June this year, and are currently researching sites for an additional seven stores to be launched by the end of the year. This year, we've firmly established our healthier positioning with the launch of a range of six pizzas which have earned the Heart Foundation Tick of approval.
Where do you expect the business to be in 2010? Within the next two years we expect Crust to have a national presence and solidifying its position as the leading gourmet pizza delivery chain in Australia.
What do you expect from a franchisee?
Franchisees must possess a variety of entrepreneurial skills, be passionate about the Crust brand and products, and have the ability to closely follow the franchise system.
What are the start-up costs for a franchisee and what working capital should they have?
Start up costs vary according to site size and existing infrastructure. Indicative costs are in the vicinity of between $250,000 to $350,000. These figures include $20,000 of working capital.
What is the length of agreement?
The Crust
take away franchise agreement has a total duration of 15 years, comprising three 5 year terms.
What sort of hours will the franchisee have to work to get the business established and how long should that take? Depending on the franchisees level of previous experience, most new franchisees will work between 50 and 60 hours per week, during the start up phase (first three months).
What profit can a franchisee reasonably expect to make after two years?
Crust franchisees have an average profit of 20 - 25 per cent of turnover.
This article appears courtesy of Franchising Magazine.
27-Jun-2008