INITIAL REQUIREMENTS

• Financial Requirements & Start-Up Costs
As of 2019, the initial investment varied from just above $1,3mln to 2,1mln USD plus $0,3mln for initial operating ramp up.

• Location: ability to find a location suitable to franchisor business model compliant to local regulations and licensing requirements

• Significant Business Experience: Individuals who have demonstrated successful ownership or management of multiple business units or have managed multiple departments

• Business Plan: The ability to develop and execute a business plan

• Manage Finances Well: Ability to manage finances including a thorough understanding of business financial statements

• Good Management Skills: Commitment to personally manage the day-to-day operations of the restaurant business.

• Training: Willingness to complete an extensive, comprehensive, training program, to become proficient in all aspects of operating a CulianryON Franchising

• Exceptional Customer Experience: The capability to effectively manage an organization that recruits, trains, and motivates employees who deliver exceptional customer experience.

• Good Credit History: You must have an acceptable credit history

SUBSIDIARY MANAGEMENT

• Initial Construction and business set-up
Lead the construction process and initial business set up according to the standards set by the franchisor

• Local management
The franchisee manages the local subsidiary independently and punctually reports operating results and eventual difficulties to the franchisor

• Finance
- Manage local subsidiary cash-flow
- Pay franchising dues
- IT licensing fees (e.g. CRM system)

• Sales management
- Build a strong customer base
- Manage active sales team
- CRM system management

• Marketing & PR
- Manage local marketing and PR
- Protect and develop franchised brand in the territory

• Operations Management
- Manage local operations in compliance with operating standards, including event management team, F&B department, cleaning, etc

• HR management
- Ensure a committed, capable and well trained team
- Ensure high employee satisfaction
- Ensure efficient staffing according to standards

• Legal Compliance
- Compliance to Franchising contract agreement
- Compliance to local laws and regulations

ONGOING FEES
During the term of the franchise, the franchisee pays the franchisor the following fees:

• Service Fee:
- A quarterly fee based on the business sales performance (a service fee of 5.0% of monthly sales)

ROLES & RESPONSIBILITIES

• Partner selection
Select qualified franchisees who understand the franchise's concept and have the capabilities and commitment to operate the system according to the established standards.

• Legal rights
- Guarantee to the franchisees geographical exclusivity and usage rights for Franchisor's brand & trademarks

• Business advisory and support role
- support the franchisee with business advisory services including all aspects of business

• Construction
- Layout definition & standards
- Construction & materials guidelines

• Operations
- Operating standards
- Quality audits
- Guest satisfaction tracking system
- Operating benchmarks across locations
- Business process management software (BPM)

• Sales
- Proprietary CRM system
- Sales techniques and training system
- Blueprints for commercial offers
- Cross-location benchmarks
- Yield management recommendation
- Centralised lead generation system (from QIII 2020)

• Commercial controlling
- Centralised commercial controlling
- KPI definition and tracking
- Cross-location benchmarking

• Experiences / event formats
- Provide a differentiated range of experiences including
> 1. Culinaryon: Cooking events
> 2. PaintON: Art parties
> 3. WineON Las Vegas: WineOn Casino
> 4. ShakeON: cocktail masterclasses
> 5. QuizOn: Intellectual games
> 6. KidsON: Parties for kids

Marketing
• Product development & innovation
• Digital marketing support
• Social media marketing support
• Best practice sharing among markets
• Blueprints for sales & commercial materials
• Brand books and marketing guidelines
• Assistance in developing local commercial strategy
• Web site infrastructure
• Brand reputation management

• Kitchen and Bar
- Recipies and menus
- Training for executive chef
- Operating standards
- Quality and safety audits
- Food cost benchmarking

• HR management
- Job descriptions & organisational charts
- Staffing standards
- Employee happiness tracking
- 360 degree employees performance assessment
- Standards for Employee KPI and performance appraisals

• IT Management
- Access and training for business process management and CRM system (Creatio)
- CRM system training

• Partners
- Support franchisee during the negotiation with eventual partners (Kitchen manufactures, Alcohol producers / distributors, Food suppliers)

COMPANY GOVERNANCE

• Shareholder agreement
The joint venture is ruled by the articles of a share holder agreement, that define the scope of the partnership and the way the company will be managed

• Board of directors
Members of the board of directors are appointed by the JV partners and oversee the work of the management team, finance and company strategy

• Decision making process
The Shareholders shall have voting rights and number of votes corresponding to their shareholding in the Company. Reserve matters require unanimous vote guaranteeing the rights of the minority shareholders

FINANCING

• Financial Requirements & Start-Up Costs
As of 2019, the initial investment varied from just above $1,3mln to 2,1mln USD plus $0,3mln for initial operating ramp up.

- Financing is provided by shareholders in form of loans (90% by the investor and 10% by the brand owner)

- Before the dividends are paid on a pro-rata basis, all profits of the Joint Venture shall be used to repay the loans proportionally to the loan amounts (90% / 10%)

SUBSIDIARY MANAGEMENT

• Initial Construction and business set-up
Lead the construction process and initial business set up according to the standards set by the franchisor

• Local management
The local partner manages the subsidiary independently and punctually reports operating results and eventual difficulties to the franchisor

• Finance
- Manage local subsidiary cash-flow
- Pay franchising dues
- IT licensing fees (e.g. CRM system)

• Sales management
- Build a strong customer base
- Manage active sales team
- CRM system management

• Marketing & PR
- Manage local marketing and PR
- Protect and develop franchised brand in the territory

• Operations Management & IT
- Manage local operations in compliance with operating standards, including event management team, F&B department, cleaning, etc

• HR management
- Ensure a committed, capable and well trained team
- Ensure high employee satisfaction
- Ensure efficient staffing according to standards

• Legal Compliance
- Compliance to Franchising contract agreement
- Compliance to local laws and regulations
- Reporting

ROLES & RESPONSIBILITIES

• Partner selection
Select qualified partner who understand the concept.
Partner can choose to be either engaged or silent partner

• Legal rights
- Guarantee to the joint venture geographical exclusivity and usage rights for relevant brands & trademarks

• Business advisory and support role
- support the franchisee with business advisory services including all aspects of business

• Construction
- Layout definition & standards
- Construction & materials guidelines

• Operations
- Operating standards
- Quality audits
- Guest satisfaction tracking system
- Operating benchmarks across locations
- Business process management software (BPM)

• Sales
- Proprietary CRM system
- Sales techniques and training system
- Blueprints for commercial offers
- Cross-location benchmarks
- Yield management recommendation
- Centralised lead generation system (from QIII 2020)

• Commercial controlling
- Centralised commercial controlling
- KPI definition and tracking
- Cross-location benchmarking

• Experiences / event formats
- Provide a differentiated range of experiences including
> 1. CulinaryON: Cooking events
> 2. PaintON: Art parties
> 3. WineON: WineOn Casino
> 4. ShakeON: cocktail masterclasses
> 5. QuizOn: Intellectual games
> 6. KidsON: Parties for kids

Marketing
• Product development & innovation
• Digital marketing support
• Social media marketing support
• Best practice sharing among markets
• Blueprints for sales & commercial materials
• Brand books and marketing guidelines
• Assistance in developing local commercial strategy
• Web site infrastructure
• Brand reputation management

• Kitchen and Bar
- Recipies and menus
- Training for executive chef
- Operating standards
- Quality and safety audits
- Food cost benchmarking

• HR management
- Job descriptions & organisational charts
- Staffing standards
- Employee happiness tracking
- 360 degree employees performance assessment
- Standards for Employee KPI and performance appraisals

• IT Management
- Access and training for business process management and CRM system (Creatio)
- CRM system training

• Partners
- Support franchisee during the negotiation with eventual partners (Kitchen manufactures, Alcohol producers / distributors, Food suppliers)