For a franchisee to acquire and develop successfully a CCH franchise in a given Territory, the indicative steps listed below, as preliminary & general guidelines, must be carefully applied:
Start:
Potential Franchisee decides to acquire CCH Franchise in the territory
Potential Franchisee accepts the terms of the Franchise specified by CCH for the territory as reflected in the CCH Pre-Franchising agreement
Franchisee & Franchisor sign the Pre-Franchising agreement where by both parties declare their willingness to enter into a formal agreement and to eventually sign a Franchise Development agreement for the territory & a Franchise opening & operation agreement per shop
Franchisee pays a minimum of 50 % of the Territory fee.
Franchisor Delivers to Franchisee copies of the Franchise Development agreement & Franchise opening & operation agreement
Lawyers of the Franchisee & Franchisor go over the details of the Franchise and Development agreements (This usually may take up to 3 months)
Franchisee signs the development agreement, which specifies the territory, the territory fees and the number of shops to be opened –developed – operated by the Franchisee, directly or indirectly, within the life of the Development contract , as well as standard copy of the franchise opening and operation agreement.
Franchisee pays the remaining % of the Territory fee
Franchisee starts looking for a SHOP.
Franchisor sends Franchisee a list of items needed by the Franchisee to prepare CCH End- products (drinks, Food, etc…) or for direct selling in the shop (Retail Products), including kitchen equipments as well as hardware and barware items, and requests from the Franchisee to send back a comprehensive list of potential local suppliers (names, prices, product, specifications) for eventual evaluation by the Franchisor.
Franchisor also sends Franchisee a list of financial parameters to be completed by the Franchisee based on the local market (cost of labor, residency, cost of rent, prices of competitors, etc…)
Upon receiving the data, Franchisor & Franchisee prepare a preliminary Financial performance evaluation taking into consideration the parameters of the suppliers as initially estimated by the franchisee
Franchisee selects a shop.
Franchisee invites the Franchisor to visit the territory and approve the Shop
Once approved, Franchisee & Franchisor sign the Franchise opening and operation contract for that particular Location
Franchisee pays the Franchisor 50% of the PER SHOP opening and operation Fee either upon submission by the Franchisee of the official request for the new Coffee House or , at the latest , upon signature of the Franchise opening and operation contract , as determined by the Franchisor.
Franchisee selects interior designer
Interior Designer sends to Franchisor's Interior Designer the dimensions of the Shop
Franchisor (through its Interior Designer) sends the Franchisee's Interior designer the general layout proposal of the Location, the CCH Interior Design Guidelines manual and the shop design step by step approach.
Franchisor sends to Franchisee as well the Technical design guidelines manual (Type of material, cables, lighting, wood, ceramics, etc….)
Franchisee’s Interior designer proceeds with the interior design as per the General guidelines of the Franchisor and the shop design step-by-step approach.
In parallel, Franchisee sends to Franchisor an updated list of potential product suppliers (refer to points 10 and 11 earlier) together with their corresponding item details (Prices, quantities, sizes, delivery periods, etc…
Franchisor visits Franchisee and conduct on-the –ground visits to these selected suppliers for product evaluation
Franchisor & Franchisee agree on the Product suppliers
Franchisor & Franchisee prepare an adjusted Financial performance evaluation taking into consideration the selected Product suppliers which replaces the earlier financial evaluation conducted (refer to point 12)
As decoration proceeds in the Shop, Franchisee starts completing his choice of Staff inside the Coffee House (barista, Supervisors, managers) as well as completing his choice of staff in the back office of the Operation (Operations Manager, Public Relations Manager, Accountant, personnel manager, Store keeper, Secretary, etc….) as well as choosing his consultants (auditors, lawyers, etc….)
Franchisor supplies the Franchisee with the Communication Guidelines Manual
Franchisee starts preparing with his advertising agency the communication strategy and visuals, inspired by CCH guidelines.
Franchisee starts buying the supplies needed for the proper opening of the house (Refrigerators, coffee machines, blenders, etc…
Franchisee starts committing with the local food, beverage & disposable suppliers.
Franchisor visits Franchisee to review, audit and approve the franchisee staff and local suppliers.
Franchisee arranges with the Franchisor to start the Training of the Selected staff (Usually 15 days before opening date)
Franchisor delivers to Franchisee the Menu manual as well as the General Management manual
Franchisor proceeds with the training at a location selected by Franchisor.
Franchisee would be completing, in parallel, the preparation of the CCH outlet, including setting up all FF&E (Bar, Chairs, tables, TVs, Music, Internet, reading corner, magazines, stands,etc.)
5 business days before the effective date of opening and start of trading of the coffee house, Franchisee pays the Franchisor the remaining 50% of the PER SHOP opening fee.
At the First day of the outlet's soft opening, Franchisor is present in the shop doing continuous – on site - training
Approximately 15 days to one month later, as determined by the Franchisor and approved by the Franchisee, the Shop official opening is a success and the Franchisor ‘s leaves the Franchisee's shop.
All above steps are repeated per shop or as needed
Franchisor visits Franchisee regularly throughout the year (at the Franchisor discretion) to insure that the Franchisee is abiding by the Guidelines of the Franchisor and to bring the Franchisee up to date with new developments, improvements and new products.
Franchisee pays royalty to the Franchisor on a monthly basis as reflected in the Franchise Development and Franchise opening and operation contracts.
