Franchising Manual

1 | L e t b e y o u r f a v o r i t e b e i n o n e c r u s t !

CHAPTER 1: EXECUTIVE SUMMARY

A. Company Name

Pick-A-Pizza

Contact Persons

Karl Nietes

Edriel Jhon Ceniza

Location

JC Aquino Avenue Street in front of BDO, Butuan City

Contact Number

(+63) 997 402 7791

(+63) 948 323 9966

(651) 826-9065

B. Type of Business

Food Service business offering customized pizza by the customers

Partnership

C. Mission, Vision, Core Values, and Goals

MISSION

Pick-a-Pizza’s mission is to provide and serve fresh pizza ingredients and

great tasting of customers’ personalized pizza at reasonable prices in a clean,

convenient and friendly environment.

Pick-a-Pizza also aims to provide a warm welcome among the staffs and

strive to become the first destination of choice for those in our neighborhood and

community.


VISION

Pick-a Pizza aims to be the no. 1 in pizza and in the hearts of people. It

seeks to earn customers’ loyalty. It also seeks to expand its business not only

locally, but also internationally.

CORE VALUES

Goal Setting

Aiming to meet organizational goals through meeting customer’s

satisfaction by providing their needs and wants with the best customer service.

Recognition

Aim to recognize each customer’s preferences and wants by providing

their very own customize pizza with fresh and good quality ingredients and best

customer service.

Reliable

Reliable in providing promised good customer service and accurate in

promised time.

Unity

Aiming to unite different preferences and wants in one store by giving

each individual (customers) the same quality of service and product.

GOALS

To satisfy the customer’s needs despite of their differences.

To build customers loyalty and create customers commitment.

To provide convenient and friendly place.

To maintain competitiveness, advancement, and to adapt towards the

changing environment including the needs and wants of the customers.


To expand and establish more reputable franchise units to reach more

customers in different areas.

D. Key Personnel

Personnel Function Qualifications

Assistant Manager Assisting the manager in organizing, planning and implementing strategy, coordinating operations, ensuring schedules and objectives are met, supervise and motivate staffs, monitor operating costs, budgets and resources, communicate with clients and evaluate their needs and specifications, create reports, analyze and interpret data, drive recruitment process and training & development and secure adherence to company’s policies and guidelines.

23-30 years old

Proven experience as assistant manager or similar position

Experience in recruiting and performance evaluation is an asset

Familiar with financial and customer service principles and practices

Knowledge of data analysis procedures

Proficient user of MS Office

Leadership and organizational abilities

Analytical mind with good math skills

Interpersonal and communication skills

Problem-solving

Chef In charge of kitchens, overseeing the preparation and cooking of food at restaurants, diners, and other operations.

28-35 years old

With experience

Culinary Arts diploma

Familiar with safety requirements, health regulations pertaining to food preparation and service

Attended professional training, on-the-job and apprenticeship.

Creativity

Time management skills

Multitasker

Kitchen Assistance Responsible for carrying out basic food preparation tasks, such as washing and measuring the ingredients. Also likely to organize the store room, as well as being responsible for unloading deliveries from suppliers. They will also collect and dispose of waste.

19-28 years old

carry out tasks quickly and competently

getting detailed instructions quickly and follow them closely

good spoken communication skills

Waiter/Waitress Greets customers, take food orders, bring food and drinks

18-22 years old

Good communication skills


to the tables, cleans tables and maintains the cleanliness of the dining.

Highly skilled in taking orders and attend to customer’s needs

Hands-on experience in setting tables and placing the food appropriately

Cashier Receive and disburse money. Usually involves use of electronic scanners, cash registers, or related equipment. Often involved in processing credit or debit card transactions and validating checks.

21-25 years old

Highly skilled in providing a timely, efficient, and considerate customer service

Well-versed in collecting payments for customer purchases

Proven ability to operate cash register and manage drawer

Demonstrated ability to respond and resolve customer’s requests and concerns

Experienced in displaying and restocking merchandise

Special talent for ensuring employer’s safety and sanitation expectations

Excellent written and verbal communication skills

Ability to develop long-term rapport with customers to ensure repeat business

In depth knowledge of operating cash register and maintaining cash drawer

Knowledge of gift cards, traveler’s checks, processing coupons and refunds

Security Guard Primary job duties revolve around protecting customers and staffs property. He also greets customers.

18 to 30 years old

Undergo 40 hours of classroom training

High school diploma, postsecondary degree or certificate recommended

Not have been convicted of a felony or violent crime.

Be mentally, physically, and emotionally competent.

Be able to complete and pass any state required guard training or guard training exams.

Delivery Driver Deliver food to people's homes, take money and make change. Part of your paycheck will come from tips, so you'll want to be fast and friendly

Driver’s license

Clean driving record

Communication skills

Knowledge of region and ability to travel

On time


E. Company Description

Pick-a-Pizza is a franchise business that establishes its reputation for

providing high quality food, excellent customer service and speedy

delivery to customers in Butuan area. The emphasis of this business will

be on serving delicious customized-pizza in an inviting environment which

definitely suits to those extended family get-togethers, friends/group

gatherings, parties, or just a simple family bonding.

F. Start Up Schedule and Competition

Start Up schedule is on May 2017

Opens from Monday to Sunday; 9:00 am to 9pm

Our main competitors are those businesses which also serves pizza

G. Funds Requested

Our source of funds came from partners’ capital, venture capitalist and

banks.

H. Funds Use Statement

Accumulated partnership funds will be used in purchasing materials and

equipment, construction of the building and purchase of the land, salary,

labor expenses, and for the future expenses.

I. Fund Repayment

Pick-a-Pizza target date to meet the return on investment will be on 7

years from after its first year of its operation. Repayment for the funding

received will be taken from the profits of the Pick-a-Pizza after its first

quarter of operation, as well as from the personal equities of the general

partners.


Chapter 2: Marketing

A. Major Marketing Objective

The following are the objectives of the “Pick-a-Pizza” franchising business:

To expand and establish more reputable franchise units to reach more

customers in different areas.

To be able to find and recruit 10 franchisees within the first 2-years of

operation.

First year sales 100,000 with a 10% growth yearly.

To gain market share of 39% within the first year of operation.

To maximize revenues and profits.

To maintain competitiveness, advancement, and to adapt towards the

changing environment including the needs and wants of the customers.

B. Marketing Plan and Pricing Strategies

Description of the Product:

Pick-a-Pizza specializes in making premium pizzas wherein customers

can pick any flavors, ingredients, toppings, sizes, and even sauce depending

on their likes and wants.

Target Market:

Its target market is in general —any person who can afford the

products of Pick-a-Pizza.

Pricing Strategy:

Pick-a-Pizza will use the Penetration Pricing Strategy, wherein the

pizzas are set at a low price to increase sales and market share. Eventually,

once the market share has been captured, the pizzas may then increase its

price.


Ingredients

Sauce Price

Red Sauce ₱ 10.00/5oz

White Sauce ₱ 15.00/5oz

Pick-a-Pizza Special Sauce ₱ 20.00/5oz

Cheese Prices

Mozzarella 2200g/₱500

Parmesan 1100g/₱176 or 1000g/₱850

Cheddar 5kg/₱600

Cream Cheese 1.5kg/₱450 Meats Prices

Chicken Ham 1kilo/₱450

Ground Bacon 1kilo/₱230

Hungarian Sausage 100g/₱31.60

Meat Balls 500g/₱18.50

Pepperoni 100g/₱28.40

Salami 100g/₱38.60

BBQ Chicken 1kilo/₱135 Veggies Prices

Tomatoes 200g/₱10.29

Onions 100g/₱6.28

Pineapple 1kilo/₱30.00

Green Pepper 1kilo/₱375

Green Olives 140g/₱53.00

Roasted Garlic 1kg/₱90.00-₱100

Spinach 5oz/₱75.75

Mushrooms 8oz/₱38.65

Hot Banana Pepper 1 pieces/₱91.34 Herbs & Spices Prices

Fried Garlic 1kg/₱45.00

Fresh Onions 100g/₱6.28

Basil 1180g/₱222

Oregano 17g/₱276

Thyme per packet/₱82.00

Dried Chili Powder 8oz/₱385.00 Topping Sauce Prices

Olive Oil 500ml/₱273

Cheese Sauce 36oz/₱73.50

Barbecue Sauce 18oz/₱28.00

Chili Sauce 35,274oz/₱120.00

Nutella 350g/₱499.00

Salsa 15oz/₱170.00


Sizes of crust are available in medium size only

C. Franchisee Recruitment Plan and Flowchart

Submission of Application

Preliminary

Interview

Seminar, Meeting with the

Existing Franchisees

Observation of Store

Operation and Evaluation

1 Month Training

Handover

Attracting and Recruiting

Secondary Interview

Qualification

Process

Yes No

Terminate

Yes No

Terminate

Yes No

Terminate

Figure 1. Franchisee

Recruitment Plan and

Flowchart


The first step is the attracting and recruiting. In this stage the Franchisor

attracts and finds a qualifying prospect franchisee who will handle the franchisor

business. The second stage is the submission of application. Applicants will

present and submit the necessary requirements needed in operating the

business. It includes the applicant's profile, background, and other things.

FRANCHISEE APPLICATION

Date: _________________

PERSONAL DATA:

Name: _____________________________ Social Security No: ___________________

Address:_____________________________________ Years there: ______________

City: ______________________ State: _________________ Zip: _________________

Business Phone: _______________ Home phone:___________ Best time to call _____

Your email address: _________ would you like to communicate by email? Yes__ No__

Date of Birth: ___________ Marital Status: _______ Spouse name: ________________

Number of Dependents: ____________ Ages: ____________

How did you become aware of this franchise opportunity? _______________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

BUSINESS EXPERIENCE:

PRESENT/MOST RECENT POSITION ______________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

PREVIOUS POSITION:

______________________________________________________________________

______________________________________________________________________

HAVE YOU EVER OWNED A BUSINESS: Yes _____ No _____

IF YES, WHAT TYPE?

______________________________________________________________ _______


OTHER BUSINESS AFFILIATIONS (OFFICER, DIRECTOR, PARTNER, ETC.)

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

GEOGRAPHICAL PREFERENCE: _________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

EDUCATION:

(Highest level of education completed)

Institution:_____________________________________________________________

Address: __________________________________ City: ______________________

Province: __________________________________ Postal Code: ________________

(Date attended) From: _______________________ To: _______________________

Diploma, Degree, etc obtained:

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

References (Include one bank reference, Do not include relatives).

1. Name:

___________________________________________________________

Address: _________________________________________________________

Phone: _________________________________

Relationship: ____________________________

Years Known: ___________________________

2. Name:

___________________________________________________________

Address: _________________________________________________________


Phone: _________________________________

Relationship: ____________________________

Years Known: ___________________________

3. Name:

___________________________________________________________

Address: _________________________________________________________

Phone: _________________________________

Relationship: ____________________________

Years Known: ___________________________

Then the qualification process in which the applicants will be on screening

if they are qualified (possessing the qualities of franchisee). If passed, proceed to

next step which is the preliminary interview in which the candidate will be

interviewed regarding to the franchising (basic information and experience, why

he wanted to engage in such things, etc.) if he will pass he’ll proceed to seminar,

meeting with the existing franchisees. The candidate will attend seminars that will

help him provide the helpful knowledge that he might needed. After that is

meeting with the existing franchisees, inspirational talks, helpful tips, etc. The

next step is the observation of store operation and evaluation in which the

franchisor lets the candidate observe the store, how the operation goes and

evaluates. Next is the secondary interview. In this stage the candidate will

undergo secondary interview with the franchisor and panels. After the secondary

interview is the one month training. The candidate will undergo one month

training to learn the operation. And the last step who will complete the flowchart

is the handover in which the franchisor will hand over the franchising business to

the franchisor applicant.


D. Franchisee Prospectus


E. Franchisee Sales and Advertising

Let your favorite be in one crust!

About Us

Pick-a-Pizza is a franchise business that

establishes its reputation for pro viding high

quality food, e xcellent customer se rvice and

speedy delivery to custome rs in Butuan area.

The emphasis of this business will be on serving

delicious customized-pizza in an in viting

environment which definitely suits to th ose

extended family get -togethers, f riends/group

gatherings, parties, or just a simple family

bonding.

Our Customers

Pick-a-Pizza caters any kinds of customers that can

afford to buy the pizza howeve r, the main ta rget

market are families, friends and colleagues that

would want t o spend qu ality time while eating their

original customized-pizza.

So, if you are loo king fo r a place tha t will satisfy you r

pizza c ravings with you r o riginal customized-pizza

and to chill out with your family, friends then Pick-a-

Pizza is the perfect place of choice!

Franchise Offer

The f ranchise relates to the operation of

customization of pizza under the Pick-a-

Pizza trade name and business system.

Financial Assistance

The franchisor does not offer direct o r indirect

financing. The franchisor will not guarantee the

franchisee’s note, lease or other obligation.

Training and Assistance

Training includes seminars in enhancing the

knowledge and on-the -job training. The franchisor

may require that all Store employees successfully

complete initial and periodic training that the

franchisor prescribes. The franchisor may offer

periodically additional training programs and

lessons, attendance at which may be optional or

mandatory, at its choice, for the franchisee, and/or

other of the franchisee’s employees. For the

franchisee’s first store, the franchisor will send an

operations specialist to the Store for at least four

days during the period the Store first opens for

business to verify that the franchisee is operating

the Store in accordance with the Operations

Manual.

Obligations and Restrictions

If the franchisee is an individual, the franchisor

encourages him or her t o manage the Sto re pe rsonally,

but does not require that he or she do. If th e franchisee

chooses not to manage the Store, the franchisee must

appoint an individual, called a Gene ral Manage r, to

assume personal responsibility for managing th e Store 's

day-to -da y ope rations. The Gene ral Manage r must be a

full-time employee who either lives in the neighborhood

where th e store will be located or agrees to mo ve into the

neighborhood and become active in the communit y. The

General Manager must also successfully complete the

training prog ram bef ore the Sto re is opened. The

franchisee must offer and sell all products and services

that the franchisor requires, and only the products and

services that the franchisor has approved for the

Restaurant. The franchisor may not offe r or sell any

products it has not approved.

We would like to encourage you to join us and

experience great opportunities towards success.

Contact Us

JC Aquino Avenue Street, in front of BDO, Butuan City

Pick-a-Pizza

@pickapizza

@pickapizza

[email protected]

[email protected]

(632) 855-8834

(+63) 997 402 7791

mailto:[email protected]



Pick-a-Pizza will reach its prospective franchisees through the use word of mouth,

social media, TV ads, posters, fliers/brochures and newspaper

F. Franchisee Location Criteria Selection

The objective is to lease a site at JC Aquino Avenue Street in front of BDO.

G. Grand Opening Plan

Pick-a-Pizza will start to operate its first operation in business on May 2017

In the pre-opening, the business franchisor and franchisee will facilitate or must

be present (franchisor will assist the franchisee). In order to have a successful that will

gain a memory not only to the customers but also to the person involve in business

(competitor, or a person wanted to engage or has a possibilities in opening its own

business. That’s why the grand opening must be well-planned since it will reflect the

business until its long-run operation.

The license, permits and taxes or those things that can be legalizing the business

should already be known and payed. The franchisee will visit the site location and

review the business plan if the things will be in order. The opening training for schedule

initial training and initial training program for the crews and staf fs that will be involved in

the operation, and for safety training. The displaying of manual will also be part of pre-

opening to be able to notify the persons involved what is the goal the business

franchising wanted to achieve. Setting up the facility, after everything (requirements)

has been already done. Setting up the faci lities is one of the important aspects before

the grand opening, owner must be weeks ready before the final grand opening. Staffs or

crews or those persons involved should have already the uniforms that they will wear

during the grand opening or operation. Marketing tools used will also be part of pre-

opening, the franchisee should already think what are the marketing tools or

promotional strategies to be used in order to reach customer—advertisement, setting

the price in the floor (market penetration strategy), and other promotional or marketing

tools. Insurance coverage (general insurance requirements, minimum coverage

amounts and insurance company requirements) has also been ready for more secure

and trustworthy franchising business. Notification the public or store launch campaign,

this is where the marketing tools are being used and distributed to the public— giving


flyers, posters or advertising through television or social media. Announce in public the

specific date (time starts such as ribbon cutting, etc.)

Ongoing, this is during the operation of the business. Every week after the (soft)

opening, owner should still follow-up or evaluate to know if the operation is sti ll in lined

with the operation manual so he should conduct a visit on field, audit, evaluate the staffs,

crews or the persons involved in the operation. Conduct a VIP visits or experts to get

valuable and helpful information; He might also develop the current menu, website

development and guidance in business.

H. Customer Advertising

Pick-a-Pizza advertising includes:

Fliers/Brochures - piece of paper that has something printed on it (such as an

advertisement or an announcement) and that is given to many people.

Posters - a decorative placard that is often posted in public places.

TV Ads - programs that are broadcasts by television.

Social Media - forms of electronic communication (as Web sites for social

networking and microblogging) through which users create online communities to

share information, ideas, personal messages, and other content (as videos).

Examples: Facebook, Instagram, Twitter.

Word of Mouth - Oral or written recommendation by a satisfied customer to the

prospective customers of a good or service. Considered to be the most effective

form of promotion, it is also called word of mouth advertising which is incorrect

because, by definition, advertising is a paid and non-personal communication.


Chapter 3: Management

A. Headquarters Organization

1. Organizational Structure

Pick-a-Pizza Organizational Structure

2. Policies and Procedures

Employees must wear their proper uniform. Must follow the dress code of the

day.

Must wear their ID’s

Vacation usage must be a maximum of 7 days and it could also be monetized

if not used.

Sick time usage is a maximum of 10 days and can be monetized.

Employees must observe cleanliness at the workplace

Payroll is every 15 days and must be claimed at the HR office

Employees must work 8 hours a day, 5 times a week.

Employees must take good care of the office equipment.

Shut down your machines before leaving.


Using the organization’s computer resources to seek out, access or send any

material of an offensive, obscene or defamatory nature is prohibited and may

result in disciplinary action.

Employees must pass all the exams and interviews upon being held as hired.

3. Personnel Management

President – is the owner of the business. He is the franchisor of the said

business. He is responsible for establishing a company’s goals and strategies and

presiding over the entire workforce. Oversees budgets and ensures resources are

properly allocated. Ensures departments meet individual goals.

The president of the Franchisor of Pick-a-Pizza is receiving a salary worth

350,000 per month. Knowing that the Company receives payments and profits from

different branches nationwide, it is expected that the President or Franchisor has a

big salary. The President also receives bonus every 2nd and 4th quarter of the year.

He receives 25,000 to 50,000 depending on the excess of profits earned by the

business. Also the President receives a 13th month pay same to his monthly salary

The President is covered with different benefits such as Phil Health, SSS

loans, and PAG-IBIG funds that are deducted to his monthly salary.

For vacation and sick leaves, the President can decide on it. As the owner

and the boss of the said company, he is in control of his time. But the general policy

of the company regarding vacation and sick leaves must at least be followed.

Vice President in Marketing – is the head of advertising and promotion,

sales, market research and customer service. The Vice President of Marketing

reports to the CEO and is a member of the Company’s executive team. He or she

will be responsible for providing executive leadership and management of the

Company’s marketing organization and inbound and out-bound marketing activities

worldwide, which will include: Corporate marketing, partner/channel marketing,

product marketing, and product management. The VP Marketing will drive the


Company’s efforts to position itself as a visionary leader and potential in its emerging

market and to achieve its revenue goals.

The classification of the President in monthly salary and vacation leaves is

the same to the Vice President in Marketing as well as for the employees.

Advertising and Promotion Manager – Plans and direct advertising policies

and programs or produce collateral materials, such as posters, contests, coupons, or

giveaways, to create extra interest in the purchase of a product or service for a

department, an entire organization, or on an account basis.

Market Researcher – he or she collect and analyze data information that is

valuable to their clients who are made up of organizations, business and

government departments. The information they provide helps their clients to make

informed political social and economic decisions.

Vice President in Operations – he or she is the head of the materials

handling, quality control, service process deve lopment, and product development.

He or she is the executive in charge of strategy of strategy for a company or

organization. The VP of operations helps design a winning strategy for the company

oversees the directors and managers as they carry out the plan, measures the

results of the strategy, and reports them to the company president.

Supervisor – he or she accomplishes manufacturing staff results by

communicating job expectations; planning, monitoring, and appraising job results;

coaching, counselling, and disciplining employees; initiating, coordinating, and

enforcing systems, policies, and procedures. Supervisor maintains staff by recruiting,

selecting, orienting, and training employees; developing personal growth

opportunities.

Vice president in Finance – he or she is the head of accounting

administration, information management. He or she works close with other senior

leaders to drive growth and seek improvements in operational processes. These


high level executives are typically responsible for coordinating financial planning

analysis and reporting.

Financial Analyst – he or she determines cost of operations by establishing

standard costs, collecting, and operational data. The Financial Analyst identifies

financial status by complaining and analyzing actual results with plans and forecasts.

Guides cost analysis process by establishing and enforcing policies and procedures;

providing trends and forecasts, explaining processes and techniques,

recommending actions.

Accountant – he or she prepares asset, liability, and capital account entries

by compiling and analyzing account information. The accountant documents

financial transactions by entering account information. He or she recommends

financial actions by analyzing accounting, options. And he summarizes current

financial status by collecting information; preparing balance sheet, profit and loss

statement, and other reports.

4. Personnel (Wage and Salary)

Personnel Monthly Part Time

Vice President in Marketing Php. 20,000.00

It depends on duty hours

Vice President in Operations Php. 20,000.00

Vice President in Finance Php. 20,000.00

Advertising and Promotion Manager Php. 10,000.00

Market Researcher Php. 13,500.00

Supervisor Php. 14,000.00

Financial Analyst Php. 10,000.00

Accountant Php. 10,500.00


B. Franchise Organization

1. Organizational Structure

2. Policies

The purpose of this policy is to state Pick-a-Pizza position on administering

equitable and consistent discipline for unsatisfactory conduct in the workplace. The

best disciplinary measure is the one that does not have to be enforced and comes

from good leadership and fair supervision at all employment levels. The purpose of

any disciplinary action is to connect the problem, to prevent recurrence and to pre

he problem, and to prepare the employee for satisfactory service in the future.

Although employment at Pick-a-Pizza is based on mutual consent and both the

employee and the business have the right to terminate employment at will, with or

without cause or advance notice. Pick-a-Pizza may use progressive discipline at its

discretion. Disciplinary action may call for any of the three steps: Verbal Warning,

Written Warning, or Termination.

All employees are responsible for complying with the policies, rules, and

regulations contained herein.

Equal Employee Opportunity

Attendance Policy

Franchisee

Manager

CashierSecurity Guard

Chef

Kitchen Assistance

Waitress Waiters


Dress Code

Payroll And Overtime

Confidentiality and Non-disclosure

Leave Policy

3. Personnel Management

Manager

Tasks carried out by restaurant managers vary depending on the type of

restaurant, but usually include:

Business Activities:

Taking responsibility for the business performance of the restaurant.

Analyzing and planning restaurant sales levels and profitability

Organizing marketing activities, such as promotional events and discount

schemes

Preparing reports at the end of the shift/week, including staff control, food control

and sales

Creating and executing plans for department sales, profit and staff development

Setting budgets and/pr agreeing them with senior management.

Planning and coordinating menus

Chef

Determine how food should be presented, and create, decorative food displays.

Determine production schedules and staff requirements necessary to ensure

timely delivery of services

Estimate amounts and costs of required supplies, such as food and ingredients.

Inspect supplies, equipment and work areas to ensure conformance to timely

delivery of services

Instruct cooks and other workers in the preparation, cooking, garnishing, and

presentation of food.


Monitor sanitation practices to ensure that employees follow standards and

regulations

Cashier

Itemizes and totals purchases by recording prices, departments, taxable and

non-taxable items; operating a cash register

Enters price changes by referring to price sheets and special sale bulletins

Discounts purchases by redeeming coupons

Collects payments by accepting cash, check, or charge payments from

customers; making change for cash customers

Verifies credit acceptance by reviewing and recording driver’s license number;

operating credit card authorization system

Balances cash drawer by counting cash at beginning and end of work shift

Provides pricing information by answering questions

Maintains checkout operations by following policies and procedures; reporting

needed changes

Maintains checkout operations by following policies and procedures, rules and

regulations

Contributes to team effort by accomplishing related results as needed

Kitchen Assistant

Ensuring the food preparation areas are clean and hygienic Washing utensils

and dishes and making sure they are stored appropriately

Sorting, storing and distributing ingredients

Washing, peeling, chopping, cutting and cooking foodstuffs and helping to

prepare salads and deserts

Disposing of rubbish

Organizing linen laundry

Cleaning food preparation equipment, floors and other kitchen tools or areas


Security Guard

Security guards monitor and protect property against criminal activity and

damage.

Waiters

Greets guests and presents them with the menu

Informs guests about the special items for the day and menu changes if any

Suggests food and beverages to the guest and also try to up sell

Take food and beverages orders from the guest o the order taking pads or on the

handheld Point of sale system

Obtaining revenues, issuing receipts, accepting payments, returning the change

Performing basic cleaning tasks as needed or directed y supervisor

Filling in for absent staff as needed

Punch the order on POS machine

Communicate to the guest as per the course of order

Observes guests and ensure their satisfaction with the food and service

Promptly respond to guest with any additional request

Maintaining proper dining experience, delivering items, fulfilling customer needs,

offering

Desserts and drinks, removing courses, replenishing utensils, refilling glasses

Prepare mixed drinks for service to your customers table

Properly open and pour wine at the tableside

Adhere grooming and appearance standards consistently

Understands and can communicate products and services available at the resort

Must have some familiarity with basic cooking skills

Assist the stocking and maintaining the restaurant par stock levels and side

station

Help other areas of the restaurant such as answering telephones and completing

financial transactions.


4. Personnel (Wage and Salary)

Personnel Monthly Part Time

Manager Php. 12,000.00

It depends on duty hours

Cashier Php. 8,500.00

Security Guard Php. 7,500.00

Chef Php. 8,900.00

Waiters/Waitress Php. 8,300.00

Kitchen Assistance Php. 5,000.00

C. Operations Manual and Training Manual

Operations Manual

A continuously expanding Pick-a-Pizza with fresh baked and ready to eat meals

Opened: Monday to Sunday at 9:00 am

Time closed at 12:00 midnight

The profit sharing model allows franchisees to earn more as they sell more

Making sure that the restaurant does not get stuck in the rut of just providing

what customers want rather delighting the customers with products, features and

services they had not thought of

The restaurant will always have good defined annual plan and operating budget

The restaurant will spend large amounts on new getting new customers, little

realizing that if they have quality product and service on their side, they will

benefit far more from existing customers

The restaurant advertising strategy includes all media related initiatives to market

the restaurant. These include advertisements on television, in newspapers, flyers

and brochures handed out at site and so on.


Training Manual

Career development of ongoing acquisition or refinement of ski lls and

knowledge, including job mastery and professional development, coupled with

career planning activities

Current information about the organization and future trends helps employees

create more realistic career development goals

Career planning development clarifies the match between organizational and

individual employee goals

Create programs and activities to provide skill development, such as job rotation,

cross-training, mentoring, internships, coaching, and career strategy groups

Create network of colleagues for problem-solving and support

Increase motivation and job satisfaction

Time for learning in the workplace is important for the success of an employee

development program

Some of attending the seminar or the training are the following:

1. Manager

2. Cashier

3. Waiters/waitress

4. Chefs

5. Security guard


D. PERT Chart

START

Phase I Research and Analysis

Phase II

Organizational

Development External Internal

Phase III

Marketing to Franchise

Phase IV

Franchise Selection

Phase VI

Start Up and Feedback

Franchise start

Industry Analysis

30 days

Market Analysis

30 days

Management

Analysis 30 days

Finance analysis

40 days

Legal analysis

40 days

Franchisor Profit

Structure 40 days

Market Plan

30 days

Bldg and Layout

90+ days

Location Selection

30 days

Business Plans

30 days

Disclosure

Documents 60+ days

Operations

Manual 40 days

Training Manuals

40 days

Training, Franchise Sales

persons 20 days

Franchise Advertising

30 days Prospective Franchise

presentation 30 days

Franchise application

completion 40 days

Franchise Interview &

approval 30 days

Franchisee Training

30 days

Building and Site Development

60+ days

Materials and Supplies

Ordering 30 days

Employee

Training 10 days

Grand Opening

10 days

Customer Advertising 20 -3-

days Follow up Continuous


Chapter 4: Finance and Accounting

A. Headquarters

1. Start-Up and Turnkey Costs

2. Proforma Income Statement

Pick-a-Pizza ProForma Income Statement

2017-2019

Year 1 Year 2 Year3

Sales Php. 1,200,000.00 Php. 1,500,000.00 Php. 1,900,000.00

Net Sales Php. 1,200,000.00 Php. 1,500,000.00 Php. 1,900,000.00

Less: Cost of Production Php. 60,500.00 Php. 60,750.00 Php. 60,800.00

Gross Profit Php. 1,139,500.00 Php. 1,439,250.00 Php. 1,839,200.00

Less: Selling & Administrative Expense

Php. 15,000.00 Php. 15,250.00 Php. 15,500.00

Operating Income Php. 1,124,500.00 Php. 1,424,000.00 Php. 1,823,700.00

Less: Income Tax Expense Php. 13,500 Php. 13,600 Php. 13,700

Net Income Php. 1,111,000.00 Php. 1,410,400.00 Php. 1,810,000.00

Start- up Assets

Land Php. 100,000.00

Building Php. 500,000.00

Equipment and Supplies Php. 593,002.00

Furniture Php. 34,500.00

Office Supplies Php. 20,000.00

Monthly Salary Php. 156,000.00

Legal Expense Php. 250,000.00 TOTAL Php. 1,653,502.00


3. Proforma Balance Sheet

Pick-a-Pizza

Proforma Balance Sheet

2016-2018

Particulars Year 1 Year 2 Year 3

ASSETS

Current Assets

Cash Php. 150,000.00 Php. 200,000.00 Php. 450,500.00

Accounts Receivable Php. 12,000.00 Php. 1,000.00 Php. 8,000.00

Total Current Assets Php. 162,000.00 Php. 201,000.00 Php. 458,500.00

Non-Current Assets

Land Php. 100,000.00 Php. 100,000.00 Php. 100,000.00

Equipment and Supplies Php. 595,000.00 Php. 595,000.00 Php. 595,000.00

Office Supplies Php. 593,002.00 Php. 593,002.00 Php. 593,002.00

Subtotal Php. 1,288,002.00 Php. 1,288,002.00 Php. 1,288,002.00

Less: Accumulated Depreciation

Php. 13,000.00 Php. 14,250.00 Php. 13,500.00

Total Non-Current Assets Php. 2,563,004.00 Php. 2,561,754.00 Php. 2,562,504.00

TOTAL ASSETES Php. 2,725,004.00 Php. 2,762,754.00 Php. 3,021,004.00

LIABILITIES AND OWNER'S EQUITY

Current Liabilities

Loans Payable Php. 725,000.00 Php. 725,000.00 Php. 725,000.00

Total Current Liabilities Php. 725,000.00 Php. 725,000.00 Php. 725,000.00

Non-Current Liabilities


Total Non-Current Liabilities

Php. 350,000.00 Php. 400,000.00 Php. 500,000.00

Total Liabilities Php. 1,075,000.00 Php. 1,125,000.00 Php. 1,225,000.00

OWNER'S EQUITY

Beginning Capital Php. 700,004.00 Php. 700,754.00 Php. 800,004.00

Add: Net Income Php. 565,000.00 Php. 740,000.00 Php. 506,000.00

Additional Investment Php. 620,000.00 Php. 402,000.00 Php. 800,000.00

Subtotal Php. 1,885,004.00 Php. 1,842,754.00 Php. 2,106,004.00

Less: Withdrawals Php. 235,000.00 Php. 205,000.00 Php. 310,000.00

Total Equity Php. 1,650,004.00 Php. 1,637,754.00 Php. 1,796,004.00

TOTAL LIABILITIES & OWNER'S EQUITY

Php. 2,725,004.00 Php. 2,762,754.00 Php. 3,021,004.00


0

5000

10000

15000

20000

25000

30000

10 20 30 40 50 60 70 80 90 100

Cost

Profit

4. Projected Cash Flow

CASHFLOW

Year 1 Year 2 Year 3

Cash Inflows

Cash Revenue Php. 1,200,000.00 Php. 1,500,000.00 Php. 1,900,000.00

Collection of Accounts

Receivable

Loan Proceeds

Additional Investment

Total Cash Inflow Php. 1,200,000.00 Php. 1,500,000.00 Php. 1,900,000.00

Cash Outflows

Procurement of


Cost of Production Php. 60,500.00 Php. 60,750.00 Php. 60,800.00

Payment of Selling, General & Administration

Expense

Php. 15,000.00 Php. 15,200.00 Php. 15,400.00

Payment for loan amortization

Php. 10,000.00 Php. 10,000.00 Php. 10,000.00

Payment of Income Tax Php. 13,500 Php. 13,600 Php. 13,700

Personal Withdrawals Php. 235,000.00 Php. 205,000.00 Php. 310,000.00

Total Cash Outflow Php. 927,002.00 Php. 897,552.00 Php. 1,002,902.00

Net Cash Flows Php. 2,127,002.00 Php. 2,397,552.00 Php. 2,902,902.00

Cash Beginning Php. 150,000.00 Php. 200,000.00 Php. 450,500.00

Cash End Php. 2,277,002.00 2,597,552.00 Php. 3,353,402.00

5. Breakeven Analysis


6. Liquidity Ratios

Current Ratio=0.7

Quick Ratio = 0.6

Sales and Working Capital = -40.0

Activity Ratio

Accounts Receivable Turnover= 60.0

Days Sales in Receivables = 6.1

Inventory Turnover = 0.0

Days Cost of Sales in Inventory = 0.0

Accounts Payable Turnover = 0.0

Days Cost on Sales in Payables = 0.0

Sales to assets = 6.6

Sales to Net Fixed Assets = 19.6

Net Fixed Assets to Equity = 4.3

Profitability Ratios

Percent Rate of Return on Assets = 3.7

Percent Rate on Equity = 47.8

7. Provision for Taxation

Amount of Net Taxable Income Rate

Over But Not Over

5%

10,000 10,000 P500 + 10% of the Excess over 10,000

30,000 30,000 P2,500 + 15% of the Excess over 30,000





Pick-a-Pizza

Provision For Taxation


Taxes Php. 430,000.00 Php. 600,000.00 Php. 960,000.00


B. Franchisee

1. Start-Up and Turnkey Costs

2. Proforma Income Statement

Start- up Assets

Land Php. 50,000.00

Building Php. 80,000.00

Equipment and Supplies Php. 20,000.00

Furniture Php. 20,500.00

Office Supplies Php. 10,000.00

Monthly Salary Php. 95,000.00

Miscellaneous Php. 500,000.00 TOTAL Php. 775,500.00

Pick-a-Pizza

ProForma Income Statement 2017-2019

Year 1 Year 2 Year3

Sales Php. 300,000.00 Php. 640,500.00 Php. 1,500,000.00

Net Sales Php. 300,000.00 Php. 640,500.00 Php. 1,500,000.00

Less: Cost of Production Php. 25,500.00 Php. 26,000.00 Php. 26,500.00

Gross Profit Php. 274,500.00 Php. 614,500.00 Php. 1,473,500.00

Less: Selling & Administrative Expense

Php. 15,000.00 Php. 15,200.00 Php. 15,400.00

Operating Income Php. 259,500.00 Php. 599,300.00 Php. 1,458,100.00

Less: Income Tax Expense Php. 9,000 Php. 9,000 Php. 9,000

Net Income Php. 250,500.00 Php. 590,300.00 Php. 1,449,100.00


3. Proformance Balance Sheet

Pick-a-Pizza

Proforma Balance Sheet

2016-2018

Particulars Year 1 Year 2 Year 3

ASSETS

Current Assets

Cash Php. 300,000.00 Php. 460,000.00 Php. 1,000,000.00

Accounts Receivable Php. 35,000.00 Php. 40,000.00 Php. 45,000.00

Total Current Assets Php. 335,000.00 Php. 500,000.00 Php. 1,045,000.00

Non-Current Assets

Land Php. 50,000.00 Php. 50,000.00 Php. 50,000.00


Office Supplies Php. 10,000.00 Php. 10,000.00 Php. 10,000.00

Subtotal Php. 80,000.00 Php. 80,000.00 Php. 80,000.00

Less: Accumulated

Depreciation Php. 13,000.00 Php. 14,250.00 Php. 13,500.00

Total Non-Current Assets Php. 147,000.00 Php. 145,750.00 Php. 146,500.00

TOTAL ASSETES Php. 482,000.00 Php. 645,750.00 Php. 1,191,500.00

LIABILITIES AND OWNER'S EQUITY

Current Liabilities


Total Current Liabilities Php. 20,000.00 Php. 30,000.00 Php. 90,000.00

Non-Current Liabilities


Total Non-Current Liabilities

Php. 350,000.00 Php. 450,800.00 Php. 870,500.00

Total Liabilities Php. 370,000.00 Php. 480,800.00 Php. 960,500.00

OWNER'S EQUITY

Beginning Capital Php. 20,000.00 Php. 50,000.00 Php. 90,000.00

Add: Net Income Php. 60,000.00 Php. 82,000.00 Php. 81,300.00

Additional Investment Php. 52,000.00 Php. 53,000.00 Php. 80,000.00

Subtotal Php. 132,000.00 Php. 185,000.00 Php. 251,300.00

Less: Withdrawals Php. 20,000.00 Php. 20,050.00 Php. 20,300.00

Total Equity Php. 112,000.00 Php. 164,950.00 Php. 231,000.00

TOTAL LIABILITIES & OWNER'S EQUITY

Php. 482,000.00 Php. 645,750.00 Php. 1,191,500.00


4. Projected Cash Flow

CASHFLOW

Year 1 Year 2 Year 3 Cash Inflows

Cash Revenue Php. 300,000.00 Php. 460,000.00 Php. 1,000,000.00

Collection of Accounts Receivable

Loan Proceeds

Additional Investment Total Cash Inflow Php. 300,000.00 Php. 460,000.00 Php. 1,000,000.00

Cash Outflows

Procurement of Equipment and Supplies

Php. 20,000.00 Php. 20,000.00 Php. 20,000.00

Cost of Production Php. 25,500.00 Php. 26,000.00 Php. 26,500.00

Payment of Selling,

General & Administration Expense

Php. 15,000.00 Php. 15,200.00 Php. 15,400.00

Payment for loan amortization

Php. 6,000.00 Php. 6,000.00 Php. 6,000.00

Payment of Income Tax Php. 9,000 Php. 9,000 Php. 9,000

Personal Withdrawals Php. 20,000.00 Php. 20,050.00 Php. 20,300.00

Total Cash Outflow Php. 95,500.00 Php. 96,250.00 Php. 97,200.00

Net Cash Flows Php. 395,500.00 Php. 556,250.00 Php. 1,097,200.00

Cash Beginning Php. 300,000.00 Php. 460,000.00 Php. 1,000,000.00

Cash End Php. 695,500.00 Php. 1,016,250.00 2,097,200.00

5. Breakeven Analysis

0.00

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

900,000.00

180 190 200 210 1,080

Weeks

Linear (Weeks)


6. Liquidity Ratios

Current Ratio=0.7

Quick Ratio = 0.6

Sales and Working Capital = -40.0

Activity Ratio

Accounts Receivable Turnover= 60.0

Days Sales in Receivables = 6.1

Inventory Turnover = 0.0

Days Cost of Sales in Inventory = 0.0

Accounts Payable Turnover = 0.0

Days Cost on Sales in Payables = 0.0

Sales to assets = 6.6

Sales to Net Fixed Assets = 19.6

Net Fixed Assets to Equity = 4.3

Profitability Ratios

Percent Rate of Return on Assets = 3.7

Percent Rate on Equity = 47.8

7. Provision for Taxation

Pick-a-Pizza

Provision For Taxation


Taxes Php. 430,000.00 Php. 600,000.00 Php. 960,000.00

Amount of Net Taxable Income Rate

Over

5% 5%

10,000 30,000 P500 + 10% of the Excess over 10,000





500,000 P125,000 + 32% of the Excess over 500,000


Chapter 5: Legal Aspects

A. Business Structure

Pick-a Pizza is a partnership owned by Era Mae Barrios, Edriel Jhon Ceniza,

Jainalou Indig, and Karl Nietes. The partnership has been registered along with brand

name and trademark in Butuan City. Pick-a-Pizza’s been covered by different

insurances for the future purposes.

B. Contracts, Licenses, Trademarks

Franchise Contract

This agreement __________________ entered into by ________________,

henceforth known as "Franchisee," and Pick-a-Pizza, henceforth known as "Company,"

is to establish the relationship between the two parties with regard to the Franchisee

owning and operating a franchise of the Company.

This Agreement is entered into on the month of_________ day of ____, 20____.

Both parties agree to the following conditions:

Section 1: The Agreement

1.1 Franchisee will own and operate a location of the Company at

_______________. This location is not currently set up to be a franchise of the

Company.

1.2 This Agreement between the Franchisee and the Company begins on the

day of the signing of this contract, and continues until 6 years.

1.3 The Franchisee's territory will cover ______________________.


Section 2: Payment

2.1 Franchisee will pay the Company Php. 775,500.00 for the rights to own and

operate this franchise. This sum is payable for the start-up or turnkey costs of the

franchisee.

2.2 Franchisee will pay the Company royalties every quarter of year, payable to

the account of the Pick-a-Pizza Headquarters.

2.3 Failure by either party to make payment of any monies payable pursuant to

this agreement, as and when is due. Except otherwise provided herein, no termination

of this agreement for any reason shall receive or discharge any party hereto from au

duty, obligation or liability hereunder which was accrued as of the date of such

termination.

Section 3: Franchisee Responsibilities

3.1 Franchisee will oversee the day-to-day management and operation of the

franchise location, while maintaining the outward appearance customers have come to

expect from the Company.

3.2 Franchisee is responsible for maintaining the upkeep of the location. The

Company will inspect the location two times a month. Failure to comply with the

Company's standards in this regard, as noted in company handbook will result for

punishments for not complying with the standard.

Section 4: Company Responsibilities

4.2 Company will also provide support in any form to the franchisee.


Section 5: Advertising

5.1 Franchisee will maintain its own advertising campaign locally, and pay

100,000.00 for the national advertising of the Company quarterly.

5.2 Company will provide signage, product, etc. to the Franchisee on a monthly

basis.

Section 6: Rights

6.1 The trademark and any copyrights belonging to the Company will remain the

property of the company at all times. Franchisee has the right to use the trademarks

and copyrights for the purposes of advertising and promotion, provided that conditions

Franchisee must meet to use these items.

6.2 Any misuse of the Company's trademarks or copyrights will be liable in any

damages.

Section 7: Selling or Transferring the Franchise

Franchisee may sell or transfer the franchise with the consent of the Pick-a-

Pizza’s Headquarters.

Section 8: Renewal and Termination

8.1 This franchise agreement is up for renewal on 21st of August. Both parties

agree to renew at this time, a new contract will be drafted and signed. If either party

wishes to terminate the agreement, it is free to do so at this time.

8.2 Company has the right to withdraw the Franchisee's rights for the franchise at

any time if Franchisee fails to comply with ALL company standards. The Franchisee will

give up all rights to the franchise, and will not receive any compensation as a result.


Section 9: Severability and Jurisdiction

9.1 Invalidity or unenforceability of one or more provisions of this Agreement

shall not affect any other provision of this Agreement.

9.2 Franchisee and Company acknowledge that this Agreement is subject to the

laws and regulations of the state of the Philippines.

Signed:

___________________________ __________________________

Franchisee Name Company Representative Name

__________________________ __________________________

Franchisee Signature Company Representative Signature

Notary Signature and Seal:


C. Insurance Type and Cost

Property Insurance

A policy that provides financial reimbursement to the owner or renter of a

structure and its consents, in the event of damage of theft. Property insurance can

include homeowners insurance, renters insurance, flood insurance and earthquake

insurance. Personal property is generally covered by a homeowners or renters policy,

unless it is of particularly high value, in which case it can usually be covered by

purchasing an addiction to the policy called a “rider”. I a claim is filed, the property

insurance policy will either reimburse policyholder for the actual value of the damage, or

the replacement cost to remedy the damage.

General Liability Insurance

Gives you general third-party liability coverage in the event that you are

legally responsible for the injuries to another person, personal injury such as slander

and libel, medical expenses or damage to property. This will include if your product

injures someone or does property damage.

Professional Liability/Errors and Commissions Insurance

Covers you, your partners, your employees and your subcontractors,

usually worldwide (as long as the suit is brought in the United States). Two major areas

of coverage are: malpractice for failing to maintain accepted standards of care as a

professional or company and breach of contract. Policies cover legal defense costs,

court cost and court judgements against you up to the limits of your coverage. A

personal injury rider gives coverage against claims of slander, libel and invasion of

privacy. You can take our additional coverage to protect you from allegations of

copyright an intellectual property infringements. The terms of your contract or your

investors may require you to have professional liability and errors and omissions

insurance.


Workers Compensation Insurance

Required by most states, it protects your employees in the event that they

get injured or become ill, it also protects you from lawsuits due to negligence. The

premiums are priced by region as well as the class of employees you have, worker’s

that are at a higher rate of injury will cost more in premiums whereas worker’s that are

at a lower rate of injury such as secretaries will cost less in premiums.

D. Disclosure Document

Pick-a Pizza, INC.

J.C. Aquino Avenue, Butuan City

(651) 826-9065

Pick-a Pizza is a franchise business which offers the public premium pizzas with

a distinctive character and quality under the name Pick-a Pizza®.

The total investment necessary to begin operation of the traditional Pick-a Pizza®

franchise ranges from Php. 800,500.00. This includes the initial fee of Php. 500,000 that

must be paid to the franchisor or affiliate.

This disclosure document summarizes certain provisions of your franchise

agreement and other information in plain English. Read this disclosure document and all

accompanying agreements carefully. You must receive this disclosure document at

least fourteen (14) calendar days before you sign a binding agreement with, or make

any payment to, the franchisor or an affiliate in connection with the proposed franchise

sale. Note, however, that no governmental agency has verified the information

contained in this document.


You may wish to receive your disclosure document in another format that is more

convenient for you. To discuss the availability of disclosures in different formats, contact

Pick-a Pizza, Inc at (651) 826-9065 J.C. Aquino Avenue Street infront of BDO, Butuan

City. Or email us at [email protected].

The terms of your contract will govern your franchise relationship. Don't rely on

the disclosure document alone to understand your contract. Read your entire contract

carefully. Show your contract and this disclosure document to an advisor, like Lawyer or

Accountant.

Buying a franchise is a complex investment. The information in this disclosure

document can help you make up your mind. More information on franchising, such as "A

Consumer's Guide to Buying a Franchise," which can help you understand how to use

this disclosure document, is available from the Federal Trade Commission. You can

also visit the FTC's home page at www.ftc.gov for additional information. Call your state

agency or visit your public library for other sources of information on franchising.

There may also be laws on franchising in your state. Ask your state agencies

about them.

Issuance Date: ______________

Franchising Agreement or Relationship

This franchise agreement is made and effective this _________________

BETWEEN: Pick-a Pizza, Inc., a company

organized and existing under the

laws of the Agusan del Norte,

Butuan City, with its head office



located at:

J.C. Aquino Avenue Street,

in front of BDO, Butuan City

AND: ______________________ an

individual with his main address

at (OR) a company organized

and existing under the laws of

the _______________, with its

head office located at:

_________________________

_________________________

_________________________

WHEREAS, Franchisor and certain of its Affi liates own, operate and franchise

PICK-A-PIZZA throughout PHILIPPINES which, among other things, rent, sell, and

market to the GENERAL PUBLIC; and

WHEREAS, Franchisor and certain of its Affiliates, acquire, produce, license

market and sell PICK-A-PIZZA; and

WHEREAS, Franchisee is willing to purchase on a per Location of the terms

initially capitalized in this Agreement and not otherwise defined herein shall have the

respective meanings set forth in Paragraph 18 of this Agreement basis a specialized

number of PICK-A-PIZZA; and

WHEREAS, Franchisor is willing to provide various marketing, advertising,

and promotional services and activities in support of Franchisee;


NOW, THEREFORE, based on the above premises and in consideration of

the covenants and agreements contained herein, and intending to be legally bound,

the parties agree hereto as follows;

E. Franchise Agreement

Agreement Term

The term of this agreement shall be for the period, commencing the date of this

agreement. Each year of the term as measured from the date this agreement is a

contract year.

Revenue Sharing

Franchisee shall remit to franchisor of the net profits of its business in the form of

royalties, etc. distribution of profits shall be made of on the [day] of [months].

Participating Franchises

While franchisee cannot guarantee that its franchises will adopt the agreement,

franchisee will use good faith commercially reasonable efforts to recommend adoption

of the agreement to its franchises and anticipate a high level of adoption thereby.

Franchisor hereby agrees that each participating franchise shall execute letter

agreement, which has been approved by franchisee in form and substance, in favor of

franchisor, agreeing to be form to be bound of the terms of this agreement as if it were a

party hereto. Franchisee shall be liable for each participating franchises of its financial

obligations hereunder as if such participating franchisee were a location, unless


specifically designated otherwise. Implementation of the agreement at the franchise

level and franchise payments there under will be administered by the franchisor.

Payments

The parties acknowledge and agree that if franchisee fails to order number of

units required. Franchisee shall pay specific amount to franchisor as liquidated, an

amount equal to each unit which franchisee failed to order. If franchisor fails to deliver

number or units of order by franchisee, the franchisor shall pay to franchisee as

liquidated damages of amount, an equal amount to each which he franchisor failed to

deliver the parties hereto expressly agree and acknowledge the actual damages for

purpose of the subparagraph would be difficult to ascertain and that the amount set

forth above represents the parties reasonable estimate of such damages.

Marketing

With respect to advertising of product, franchisee with franchisor and to keep

franchisor reasonably advised appraised of its marketing plan and activities to comply

franchisor’s then-current customary marketing support policies and practices to the

extent they are reasonable and practicable. Franchisor shall have the rights to approve

such plans; franchisee shall provide a timely opportunity for said approval by franchisor.

Franchisor shall exercise its approval rights in a timely and reasonable manner.

Placements

Franchisee shall exercise good faith commercially reasonable efforts to

maximize revenue on the sale or rental of products or services. At all times during the

entire revenue sharing period, franchisee shall make available for sale or rental of each

location of all product or service purchased for such location.

Material Breach


A material breach by a party of any material covenant, material warranty, or

material representation contained herein, where such defaulting party fails to cure such

breach within calendar days after receipt of written notice thereof, or within such specific

cure periods as is expressly provided for elsewhere in this agreement.

.

Insolvency and/or Bankruptcy

A makes an attempt to make any arrangement for the benefits of the creditors or

voluntary or involuntary bankruptcy, insolvency or assignment for the benefits of

creditors of a party or in the event any action or proceeding is instituted relating to any

foregoing and the same is not dismissed within calendar days after such institution.

Failure to Make Payments

A failure by either party to make payment of any monies payable pursuant to this

agreement, as and when is due. Except otherwise provided herein, no termination of

this agreement for any reason shall receive or discharge any party hereto from au duty,

obligation or liability hereunder which was accrued as of the date of such termination.

Right To Use Names

Neither franchise or locations nor participating franchise shall acquire any right to

use nor shall use any copyrights, trademarks, characters or designs owned and

controlled by franchisor or any affiliates, including without any limitations, the names, or

any conjunction with other words or name in any advertising, publicity or promotion,

express or imply any endorsement of the same.


F. Franchisee – Franchisor Conditions

Article 1

Applicability

1. These general terms and condition apply to all agreements entered into

any Franchising Etc. A reference to other general terms and conditions, without written

recognition of such terms and conditions will not be accepted and these general terms

and conditions will prevail.

2. Clauses and agreements that deviate from these general terms and

conditions are legally valid only if Franchising Etc. has confirmed these clauses and

agreements in writing.

Article 2

Parties

a. Franchising Etc.: Intermediary between Franchisor and candidate, referred

to hereafter as Franchising Etc.;

b. Franchisor: The organization and its affiliated companies, to whom a

candidate is being introduced by Franchising Etc., referred to hereafter as the

Franchisor;

c. Candidate: (Potential) franchisee introduced by Franchising Etc. to the

Franchisor referred to hereafter as the Candidate


Article 3

Provision of Information and Care

1. The Franchisor must timely provide Franchising Etc. with all (further)

information that could reasonably be of importance to the intermediation.

2. The franchisor must handle the Candidate, proposed by the Franchising

Etc., and the information provided together with this proposal in a proper and careful

manner. This also means that the Franchisor must report to Franchising Etc. on the

introductory discussion within five business days following the discussion.

3. Both parties must treat all confidential information that they become privy

to within the scope of their agreement, either from each other or another source, as

confidential.

4. Franchising Etc. is not responsible or liable for the content of the

promotional material provided by the costumer.

5. Publication of presentations and formula information must be done as

soon as possible following the written commission and the deliveries of information and

promotional material or at a point in time to be agreed upon alter.

Article 4

Liability

1. Franchising Etc. disclaims any liability for damage or losses incurred by

the Franchisor or third parties due to negligent or erroneous action of a Candidate

during the selection procedure or after the conclusion of franchise agreement with the

concerned Candidate.

2. The Franchisor will hold Franchising Etc. harmless against claims from

third parties that are or could be directly or indirectly related to the intermediation by the

Franchising Etc.


Article 5

In conclusion

1. Franchising will make every effort, subject naturally to all of the above, to

serve Franchisors and candidates to the nest of its ability.

2. Except for matters that fall within the competence of the sub district court,

the civil court is competent to take cognizance of disputes, which have arisen pursuant

to the agreements, commissions, and calculated intermediation fee between

Franchising Etc., the Franchisor, and/or the Candidate,

3. Dutch law governs all agreements concluded, offers or action of

Franchising Etc., subject to these terms and conditions, irrespective of whether the

Franchisor and/or the Candidate are established or reside abroad.

4. Franchising Etc. reserves the right change these general terms and

conditions. Changes will only become applicable once Franchising Etc. has informed

the Franchisor accordingly.


Chapter 6: Appendix

A. Building Plans

Front Top View

Inside View


B. Layout Design

Inside Top View


Inside View

C. Graph

1. Franchisor

2. Franchisee

0.00

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00


Sales

Gross Profit

Net Income

0.00

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

400,000,000.00


Sales

Gross Profit

Net Income


D. Employee’s Uniforms

Mangers

Waiters/Waitress


E. Brochure



F. Logo Explanation

Tagline: Let your favorite be in one crust!

o Purple represents creativity

o According to color theory, Red, Yellow and Orange is one of the colors that can trigger

hunger and/or induce excitement.

o Green represents as the nature of the customers who will eat the pizza, its mood will determine the type of pizza that he will order and so with the ingredients he will choose.

Date post:	22-Jan-2018
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