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START UP COSTS TABLE
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| | | | FRANCHISE TYPE
| | Mini Cart Promo (1st yr only)
| Single Outlet | Multiple Outlet (promo)
| Multiple Prime |
| | | | | | LOCATION TYPE
| | Non Prime
| Non Prime
| Non Prime
| Prime |
| | | | | | TERM (years)
| | 1
| 1 | 3 | 3 |
| | | | | | FRANCHISE FEE
| | 0 | 22,000 | 38,000 | 132,000 |
| | | | | | QUARTERLY ROYALTY
| | 5,500 | 5,500 | 5,500 | 16,500
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| | | | | | MINI CART PURCHASE PRICE
| | 22,000 | 18,800 | 16,800 | 16,800 |
| | | | | | MALL CART PURCHASE PRICE
| | not applicable | 108,000 | 108,000 | 88,000 | EQUIPMENT & ACCESSORIES PER CART (approx.)
| | 15,000 | 15,000 | 15,000 | 15,000 |
| | | | | | FEATURES AND BENEFITS
| | | | | | ALLOWED ONE ADDITIONAL CART/YR
| | No | Yes | Yes | Yes | UNLIMITED MINI CARTS
| | No | No | Yes
| Yes | UNLIMITED MALL CARTS
| | No | No | Yes | Yes | FREE P 5,000 OF SUPPLIES
| | No | No | Yes | Yes | FREE 2 SETS OF CREW UNIFORM
| | No | No | Yes | Yes |
ALL FRANCHISEES BENEFIT FROM BUYING NACHOS AND ALL SUPPLIES AT SPECIALLY DISCOUNTED PRICES THAT ARE NOT OFFERED TO NON FRANCHISEES.
THE FOLLOWING LOCATIONS ARE AVAILABLE: (as of 28 May 07)
1. SM SOUTHMALL 2. SM FAIRVIEW 3. SM SAN LAZARO, MANILA 4. STARMALL, LAS PIÑAS 5. ONE SHOPPING GREENHILLS 6. SM VALENZUELA 7. SM MARILAO 8. SM LUCENA 9. SM LIPA 10. ST. FRANCIS SQUARE NEAR SUPERMARKET
Frequently Asked Questions
Here are the most frequently asked questions about our franchising program (as of Dec 1, 2005)
1.What do I have to do and how much do I have to invest to get a Nacho King franchise?
The steps in getting a franchise are as follows:
1. Review the information in this website carefully. Refer to the table above for an idea of the start up costs of attaining a franchise.
2. Contact us by email, fax or phone for us to be able to fax or email a copy of the application form and the list of requirements. Our contact information can be found on the contact us page
3. Fill in the application form COMPLETELY and send it to us together with the requirements.
4. We will then get in touch with you for a personal meeting with us based on our assessment of your suitability as a Nacho King franchisee. 5. Once you have completed the application process and are approved as franchisee, we will present you with an offer sheet detailing the terms and conditions of your franchise.
2.What is the difference between a NON-PRIME and a PRIME location?
Non Prime is usually awarded to franchisees that have locations that are not in shopping malls such as school canteens.
3. Does the initial investment include supplies?
For the three years term Php 5,000 worth of supplies is included. The supplies for the subsequent days are for the account of the franchisee.
4. How long is the franchise term?
The franchise term is either one or three years term.
5. How many outlets can I open under the franchise fee?
You can get an unlimited number of outlets for the franchise fee within the three years of the franchise, you need only pay for the cart and accessories for each new outlet.
Prime location franchisees can get an unlimited number of non-prime or prime location franchises. Non primel franchisees can get an unlimited number of non prime franchises only.
6. Are the prices set for all franchises?
We allow our franchisees to set the price as they see fit, in order to take into account their freight, municipal taxes and any other cost items that are peculiar to each franchise.
7. Where do franchisees get their supplies?
All supplies are purchased from the Nacho King head office. Delivery in Metro Manila and some parts of Luzon is available, with corresponding charges. A 5% DISCOUNT IS GIVEN FOR GOODS THAT ARE PICKED UP FROM OUR OFFICES.
8. Do you conduct location feasibility studies ?
We can conduct a feasibility study on your behalf before you invest in your franchise but there are corresponding charges to this and is subject to availability of our staff. However, we provide advice and a feasibility study form to assist prospective franchisees in assessing the profitability of their location on their own.
9.. How fast will I get my money back?
Projected gross sales and net income are presented in person by a Nacho King sales representative during the interview stage. However, these are projections only and can either be lower or higher dependent on different factors particular to the prospective franchisee.
10. Can a Franchisee do catering and supply other food establishments?
Yes, These activities are highly encouraged for higher profitability of the franchisee.
11. Who will provide the manpower to operate the cart?
It is the franchisee’s responsibility to keep their franchise fully staffed. Nacho king provide access to eligible cart attendant dependent upon availability.
12. How many crew members are needed to operate a cart?
Staffing is largely a function based on sales pattern and operating hours. A minimum of two crew members is recommended.
13. Is the ownership of the franchise transferable?
The franchise is non-transferable.
14. Can I transfer business locations?
Franchisees can transfer their cart location as they deem fit but are obliged to inform Nacho King head office in writing before doing so.
15. How long is the training program?
Cart crew training is for two days while training for the franchisee takes one day.
16. Can more than one person or a corporation apply for a single franchise?
We only award franchise agreements to individuals
17. Does the franchisee need to secure business permits?
It is the franchisee's responsibility to attain the necessary government licenses and permits for their franchise.
18. Do franchisees get territorial exclusivity?
There is no territorial exclusivity granted to a Nacho King franchisee.
19.What are the profit margins (selling price versus cost of goods) on Nacho King products?
Selling margins depend on sales mix but a good figure to by is an average of 50%.
20. Can I sell my franchise to somebody else?
No. The franchise is not transferrable.
21. I am interested in learning more about becoming a Nacho King franchisee, what should I do next?
Please email us at franchising@nachoking.com or fax us at 821 0360 a letter signifying your interest along with your full name and the fax number or email address where we can send you an application form with an accompanying list of requirements. This application form is that start of the process of becoming a Nacho King franchisee It does not commit you in any way to becoming a franchisee, it merely gives Nacho King head office a basis for assessment of your suitability for a Nacho King franchise.
22. What happens to my royalties if I stop being a franchisee before my franchise term ends?
We do not collect royalties for any quarters that a person is no longer our franchisee, so long as we have been informed in writing thrity calendar days before.
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