What is Franchising?
Simply put, franchising is a system that involves two people: (1) the franchisor -- Black Canyon, who lends our trademark, our trade name and our business methods to a (2) franchisee, who pays an initial fee and royalty for the right to do business under the franchisor's name and system. Specifically, Black Canyon offers a "Business Format Franchise" -- a type of franchising which offers the franchisee a complete business package, characterized by an continuing business relationship between Black Canyon and its franchisee that includes not only the product, services and trademark, but the entire business format itself -- a marketing strategy and plan, training, operating manuals and standards, quality control and continuous two-way communications.
What are the pre-requisites for potential franchisees?
Prospective franchisees of Black Canyon must meet two basic requirements: 1. Location - The single most important factor in the success of any restaurant is the location. While Black Canyon can help you to validate that you have a good potential location, we cannot provide assistance to actually find a location. 2. Funding - You must have sufficient capital to get your Black Canyon branch built and operational. See below.
Do I need restaurant experience?
While it is advantageous, restaurant experience is not required. Our training program will prepare you for all aspects of running your operation. During the training program, you will learn both front and back of the house policies and procedures.
How much does it cost?
The total cost will vary according to the size and location of the branch. A full service restaurant will usually require approximately US$200,000 including franchise fees, lease/rent advances, construction and pre-operating salaries for staff. Does Black Canyon provide financing? No, you must work with your own preferred financial institution to arrange financing.
What do I get for my money?
For the initial franchise fee, you receive the right to use the Black Canyon trademarks, its system for preparing, marketing and selling food products, its information, specifications, know-how and other confidential and proprietary information for the term of the agreement. Included in the indicative total investment cost, there is also some allowance (not part of the initial fee) for management and staff training and initial marketing support prior to opening, although these also depend on the particular area in which you choose to operate. Most of the start-up costs are comprised of construction/decoration and equipment costs which will vary, depending on your site. The franchise agreement is a ten year term with a five year break ("5 + 5"), subject to payment of a renewal fee and meeting all ongoing operating and financial standards.
How much will I make?
There are no guarantees, in fact the laws of may countries prevent us from making any specific claim. All businesses involve risk, but with a proven concept like Black Canyon and a good location your chances of success are very high. There are some common misconceptions about the profits of a restaurant business. People often observe that the cost of the ingredients for a menu item are a small fraction of the selling price. While this is usually the case, you must also remember that the people who cook the food, bring it to your table and wash the dishes all have to be paid, in addition to the rent, utilities, etc. These other costs account for a high percentage of the costs for a restaurant. We can provide you some assistance in preparing a business plan to help you understand the potential return on your investment. We have extensive and reliable information on the revenue and costs of goods associated with a Black Canyon restaurant, gained from over ten years experience in the business.
What support will you give me to build my unit?
Once a site location has been approved, we will select the most appropriate designer from our approved list. The designers will already have approved specifications to which they will fit out the store. We will approve all drawings along the way and may attend site meetings to ensure that your store is completed to our specification, thus minimizing the risk of costly mistakes. We will also provide you with a detailed list of the equipment required to complete your restaurant.
Can I have more than one site?
Yes, subject to our "expansion criteria", which ensure that you are operating satisfactorily as a franchisee and upholding brand standards. We would also check that you have the management and staff capability necessary to operate more than one site. We would, however, recommend that you start with one site that you totally commit yourself to for the first year. If things are going well for you, and you are meeting our "expansion criteria", then your Franchise Development Manager will discuss the possibility of expansion with you. The maximum number you can have depends on your own capability and site availability. What training will you give me and my staff? How many people does it cover? You and your team will go through our training program for each position, as appropriate. Training for each position consists of one week of classroom instruction at our Bangkok headquarters, followed by up to six weeks of on the job training at one of our existing training stores. Please note that the franchisee pays the travel costs and wages/salaries of their staff while they are undergoing training. We do not explicitly limit the number of people that you can send for training. Where do I purchase supplies? Franchisees must purchase Black Canyon's proprietary coffee blends from the company. We also offer franchisees the ability to purchase our branded china and glassware from Black Canyon. If not purchased from us, these items must be obtained independently and meet our specifications. Fresh ingredients and other commodities must be purchased from local suppliers. Your head chef will be instructed in our quality standards so that he may assist you in selecting a local supplier. Where do I sign? If you are interested in getting more information about obtaining a Black Canyon franchise, please download our prospectus and forms.
FRANCHISING