Franchising Max's restaurant

Q: How much will it cost to own a Max's Restaurant franchise?
A: The size and type of the Max's Restaurant will determine the cost of the investment to own a Max's franchise. A prospective franchisee is expected to spend anywhere from P 12-20 million in order to start operations of Max's Restaurant.

Q: What is the term of the Max's Restaurant franchise?
A: The term of the Max's Restaurant franchise is six (6) years with the right to renew 3 additional terms; total of 24 years.

Q: What fees are paid by the franchisee?
A: The franchisee shall pay Max's Inc. an Initial Franchise Fee. This fee is non-refundable. Upon approval of the franchise application, the franchise owner will have the right to use Max's Restaurant System, including proprietary marks, under a specific condition for a six (6) year period. The franchise owner pays Max's Inc. an On-going Royalte fee based on monthly gross sales of the restaurant. Gross sales shall mean and include the aggregate amount of all sales of food, beverages and other products and services performed in connection with the Max's Restaurant, wether for cash or credit sales.

Lastly, an "Advertising and Development Fund" (Advertising Fund) is the amount based on the gross sales of the Max's Restaurant that will be remitted to Max's Inc. This Advertising Fund will be used exclusively in the formulation, development and production of advertising and promitions program designed to enhance the Max's Restaurant quality image. Administration of the Advertising fund is solely under Max's Inc.

Q: Who will look for the site?
A: The prospective franchisee will look for the sites based on our site selection criteria. Max's will assists a advice you in evaluating your prospective location(s). Our experienced staff in Max's will conduct a feasibility study on the Market Trade Area to validate your initial assessment of the location(s). To ensure the success of the franchise restaurant, our recommendation will be on a "best site/location" basis.

Q: What are the criteria in selecting a site for Max's Restaurant?
A: The space requirement floor are for a Mall restaurant is 375 sqm. and for a Free Standing restaurant is 576 sqm. with a lot area of 1200 sqm. with provisions for parking space. It should be located preferably in high traffic commercial/residential areas accessible for both pedestrians and motorists.

Q: Can a franchise lease a site?
A: Yes, the franchise can lease a site where the proposed Restaurant will be built. We recommend that the franchisee enter into a long term lease agreement.

Q: How much money will I make? How long will it take to recover my investment?
A: Net income realisable from a Max's Restaurant venture will depend on how efficient and aggressive your operations will be and how good the site is. Expenses are relative to sales. On the other hand, sales is the result of hardwork, perseverance and business acumen. It is however estimated that within 3-5 years, your total investment should have been recovered.

Q: How many employees I have to hire? Who does the hiring?
A: A typical Max's Restaurant will have at least 43 employees including the Management Team. We will furnish the franchisee with a set of qualifications of the employee to be employed in the restaurant and will assist in the screening of the members of the Management Team.

Q: Do I have to put up a company to own and/or manage a Max's Restaurant franchise?
A: You can operate your Max's Restaurant either as a sole propreitor, with your associate in a partnership or set up a corporation duly registered with the Securities and Exchange Commission. However, more than the ownership of the franchise, at Max's we expect the franchisee to be actively involved and participate in the management and operations of the restaurant.

Q:I already own another franchise operations, can I still apply for Max's Restaurant franchise?
A: Yes, subject to Max's Inc. franchise agreement. As the principal/majority or owner of the Max's franchis, you cannot be involve in direct competition.

Q: Is the franchise required to purchase any of the euipment and supplies from Max's Inc.?
A: The supply requirements of the Max's franchise Restaurant will be supplied through the commissary. However, other items can be purchased from Max's sub-contractors and/or accredited suppliers.

Q: Who will provide the building plans? Who will do the construction?
A: Max's Franchising, Inc. through our recommended architect will provide the franchisee the guidelines for the building plans. The franchisee however has the option to use/contract a Max's recommended contractor or their own contractor duly accredited by Max's Franchising Inc. The restaurant will be constructed at a cost to be borne by the franchisee. Cost to acquire building permits, professional fees and other incidental cost will also be shouldered by the franchisee. During the construction, Max's Franchising Inc. will monitor and supervise the development of the project.

Q: Is the training for the franchisee and for his employees provided?
A: Yes, the franchisee as well as his managment team composed of the Branch Manager, Kitchen Supervisors, Dining Supervisors and Master Cooks will be provided with a comprehensive training for 3-4 months. Training will be a part of the Max's franchise package to ensure the delivery of consistent and standard high quality products and services.

Max's Inc. also conducts seminars and training programs to supplement manpower development. These programs include equipment maintenance, sanitation, customer service, inventory and const control, local store marketing, accounting and administration among others.

Q: What marketing and advertising support will I receive?
A: Max's marketing and advertising professionals continouslly conduct research/studies to help improve each restaurant's image in particular and the Max's Restaurant brand in general. Sales and sales trends are being analysed on a wider perspective. Systemwide and local store promitions and advertising campaigns are being planned to provide maximum impact in a limited budget. They also monitor ever-changing customer preferences through surveys and other research methods beneficial in the formulation of promotional programs and the introduction of new products.

Q: What other support and services will Max's Inc. provide its franchisee(s)?
A: Through the Quality Assurance Department, the quality of each Max's Restaurant product being served is monitored. We will also develope new and exciting products based on research and customer's perceived needs.

Q: What are the qualifications required for a Max's Restaurant franchisee?
A: We require our franchisees to be business oriented. They do not necessarily have to have experience in managing a food business, however they should possess the capability and willingness to learn the business. Their active involvement in the operation of the restaurant is critical. They are the entrepreneurs who enjoy working, communicating and relating with employees and customers.

Q: How long will it take to get a Max's Restaurant operating?
A: Once the site has been approved, the franchise agreement signed and all the related fess paid. it takes a approximately 6-9 months for the Max's Restaurant to be reay for operations.

Q: How does one get started and what are the next steps?
A: The first pre-requisite is to ask all the questions and be satisfied with the answers. Upon receipt of the Max' Franchise Evalution Form. Together with a location map of your prospective site, we sill contact you to arrange a meeting to discuss your area of interest and the franchising systems of Max's Restaurant. All necessary and pertinent information will be discussed with you relative to your interest in the Max's Restaurant Franchising Program.

How To Apply

Submit the following:

Letter of intent
Location of vicinity map
Franchise evaluation form
Detailed bio-data

Contact details:
Max's Franchising, Inc.
Roxas Blvd. cor A. Guarra St.
Baclaran, Paranaque
Tel: 832-1991/92 loc. 145/150
Fax: 511-4722
Web: www.maxschicken.com

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