Franchising Orange Drew juice drink
The juice drink of ORANGE DREW is a great tasting, healthy alternative to soft drinks or pre-packed juices and is retailed at a lower price.
ORANGE DREW started 2004 in Cebu City and became an instant hit with consumers and distributors and the Company achieved their investment payback time in six months only.
In the Franchise system of ORANGE DREW, Franchisees are operating a plant producing the juice. It is required to utilize only water supplied from a water station or Franchisee has to set up a water system. The ORANGE DREW mix is added to the water using the plant’s equipment, and then the juice is filled in 5-gallon containers.
Upon purchase of a Franchise, Franchisee is awarded an area, in which he has to set up the plant. A representative of Franchisor supervises the plant equipment installation and Franchisee receives technical and marketing training onsite.
Franchisees are required to set up a distribution network to deliver and sell the juice to retail outlets such as schools, market places, terminals, convenient and sari-sari stores and other businesses. Franchisee can utilize independent distributors within their assigned area for that purpose.
Retailers then sell the juice in 7 and 12 ounce cups with ice cubes to the consumers.
At the moment only orange flavor is sold, however in due time more flavors will be added. ORANGE DREW is BFAD approved.
Franchise Fee: Depending on Area between Pesos 75,000 to 450,000
- Use of proprietary Trade Name
- Utilization of ORANGE DREW business system
- Procurement program
- Marketing assistance
- Opening assistance
- On-going operational support
- Capital requirement: Pesos 700,000 to 1 Million depending on plant size and availability of vehicle by Franchisee, and Franchisee’s investment in a water station if needed or preferred.
- Training: onsite at Franchisee Location
- Training Fee: P 25,000 per Franchise
- Franchise Agreement: 3 years
- Renewal term: 3 years each
- Royalty: none
- Space requirement: 150 square meters minimum
STEPS TO AN ORANGE DREW FRANCHISE
1) Write LETTER OF INTENT and fill up CONFIDENTIAL QUESTIONNAIRE, then either fax to our Manila Franchise Office at (02) 912-2946 or 912-2973 or send by Courier addressed to: Franchise Division, ALTERNATIVE FOODS MANUFACTURING CORP., 968-Q V. Rama Street, 6000 Cebu City.
2) The Corporate Company of ORANGE DREW, AFMC, will evaluate your application.
3) You will be invited to discuss the franchise details either in our Cebu plant or Manila Franchise Office.
4) Receive Franchise Offering Circular (Financial details and copy of Agreements).
5) Sign Franchise Agreement and pay Franchise Fee.
6) Set up of the plant.
7) Undergo Training and Receive Opening Assistance.
8) Grand Opening!
FREQUENTLY ASKED QUESTIONS
Q: To whom do you award Franchises?
A: To people with preferable with emphasis on people handling skills and management. Franchisee should be motivated to succeed and be outgoing persons with entrepreneurial spirit. It is important that Franchisee accepts the pros and cons of Franchising, those who desire total control are not suitable to be Franchisees.
Q: How big is one Franchise Territory?
A: Depending on the population density, one area consists of a 100,000 to 2.500,000 people living, working or attending school in the area.
Q: What does the Training Fee contain?
A: The training fee is for the supervision of the technical plant set-up with equipment training and for the marketing training concerning distribution and retail. Two Franchisors representatives will be going to the plant and stay for one week each to conduct the proper training. Not included in the training fee is the transportation and lodging of Trainors, which has to be provided to Franchisor by Franchisee. Even if Franchisee purchases several territories, which are served from the plant, the Training Fee has to be paid once only, unless each additional territory has a plant.
Q: How do we set up our plant?
A: Equipment have to be purchased is from certain authorized suppliers and during the setup week a representative of Franchisor will be with you. You will have to provide carpenters and a few workers to assist in setting up the plant. Beside of the plant you have to purchase a minimum number of containers and tabletops for the retail outlets.
Q: Will you provide the site and construction of the building or outlet?
A: Each Franchisee is responsible for securing his own location. All potential sites must be submitted for approval. Construction or renovation is entirely at the expense of the Franchisee.
Q: Will you design the plant layout?
A: We will furnish you with a floor plan, sketch and basic specification. Each Franchisee is responsible for customizing the basic plan to the dimension of the proposed location.
Q: How does the distribution system work?
A: If you have delivery vehicles you may do all deliveries by yourself. We require Franchisee to have at least one vehicle. In addition, you may engage independent distributors, who do the product delivery to retail outlets.
Q: What about the water source?
A: You may tie-up with a water refilling station initially or construct one on-site. Only filtrated water is allowed to be used in the plant and for the ice cubes, which retailers need to sell the juice in cups. Therefore this business is ideal for any water station owner or Franchisee.
Q: Who are retail outlets?
A: School canteens, Company canteens, market stalls, sari-sari stores and convenience stores and many other kind of businesses.
RK Franchise Consultancy
Ground Floor Minnesota Mansion, 267 Ermin Garcia, Cubao
1109 Quezon City, Philippines
Manila (02) 912-2946, 912-2973, Nationwide Tollfree: 1800-10-88888RK