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Burger Franchises

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by

Nina Gardiner

on 26 May 2013

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Transcript of Burger Franchises

Burger Franchises Decision smallest royalty fees
best management support
even though establishment fees are high, everything is included (turn-key business) and there are lots of options available for franchisees - better value for money
marketing fees are high - its larger corporation compared the other two, its expected that there is to be higher quality and quantity of marketing required Royalty Required to pay a 6% royalty fee which is reasonably low in comparison to competitors Grill’d at 8% and Urban Burger at 7%.
Continually expanding company that operates across both Australia and New Zealand.
The corporation is so large, it is expected that the operations run by franchisees may vary
It can be clearly said that Oporto obtain the best value royalty fee. Marketing Levy Management Support
The management support in Oporto comprises of multiple aspects
- Initial 10-12 weeks of training in an established store
- Each store is fitted out and designed by independent contractors that oporto hires to oversee the construction of each store
- Provides on-going support to managers
-Group marketing fee that each store contributes to funds Oporto’s national campaigns which gives each franchise recognition. Oporto has the highest marketing levy of all the franchises
This is expected and accepted because of the size and frequency of their marketing campaigns.
Current marketing levy is at 4% of total sales paid weekly but could rise to 6% within the year. Oporto is introducing new digital marketing campaign
Release of a new and improved website as well as social networking and promotional materials.
May push the market levy up
End up being more beneficial for the franchise as it will created further brand awareness. Establishment costs Royalty Fee Establishment costs Support Company Overview Marketing Fee Royalty Fees Marketing Fees Management
Support Company
Overview Establishment
Costs Estimated $200, 000 to $400 000
Depends on store type
Includes lease, design, construction & use of UB intellectual property. A Royalty and Marketing fee paid weekly
7% sales paid royalties
3% sales paid marketing
Maximizes product volume, training opportunity & marketing benefits 4 weeks training provided
Store design/supply tips
Dedicated operations manager for continual support
Basic business plan given to you on purchase
Team selection/training provided
Brand awareness training Established in & franchising since 2003
First gourmet burger bar on Bay Street in Melbourne, Victoria
Now have 6 VIC stores and 4 QLD stores
Gourmet Grrrilla Guarentee - Fresh product, great quality
21 burgers, salads & wraps in beef, chicken or vegetarian No extra marketing fees apply except for the 3% deduction from weekly sales. - Establishment costs

This is the initial costs needed to establish the business (e.g. lease, construction and stock), capital costs (e.g. equipment, plant and machinery) and operating costs Royalty Fees

-This is usually a percentage of the overall revenue of the franchisee which is paid to the franchisor for the ongoing training and service and support provided Marketing fees

- These are the fees that the franchisee has to pay for the marketing material supplied by the franchisor Management Support Criteria - This is the support provided to the franchise (e.g training, annual meetings, business support and advice) Royalty Fees Marketing Fees Management Support Company Overview Establishment costs Established in 2004 franchising commenced 2005
First store was in Hawthorn, Victoria
23 lean burger choices or a choice of salad and steak sandwiches
50+ Restaurants over QLD, NSW, ACT, VIC, WA
Half of the restaurants are company owned and the other half are franchised
Average annual revenue $6.8 million
Mission Statement: to provide healthy burgers - Initial investment around $450,000-$550,000 but may vary depending on location and size of restaurant
- Includes capital and one off franchising fee - Royalty fees are 8% of total sales made - Marketing levy of 2% of total sales Training Provided
- Ongoing (initial 6 weeks) Kate, Nina, Jackson yeah its good, and yeah probably •Portuguese-style chicken restaurant
•Established in 1986 on Sydney's Bondi beach
•Satisfies the taste buds of over 15 million customers a year
•Opens an average of 15 stores every year •Current marketing fee is 4% of weekly gross sales that is payable to a group marketing fund
•Fee may increase to 6% in the future • 6% of the stores weekly gross sales are payable to Oporto
•On-going basis •Establishing a store costs between $450,000 and $500,00 for a typical shopping centre store and $600,00 to $700,000 for a typical drive through location
•Smaller stores with existing equipment may cost less and larger stores may cost more
•Franchising fee of $50,000 (plus GST) •Oporto provides ongoing training and support
•Before establishing a franchise the owner has intial training of 10-12 weeks without pay in an existing Oporto store
•Group advertising
•Oporto ensures that every owner understands the operational, financial and marketing aspects involved in running the store OPORTO . - The cost to establish an Oporto store: $450,000 to $700,000 plus an additional once off $50,000 franchising fee.

- The fit-out costs include: the restaurant equipment, architect fees, council fees, site finder’s fee, computer hardware and related software, initial training, stock, legal fees, an allocation for store opening promotions.

-Establishing a store with Oporto was considerably easier due to the ease of the construction phase 5 point scale
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