Figaro Coffee Company

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A research on how to franchise the Figaro Coffee Company by Daniel Edward L. Ricio

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Figaro Coffee Company

  1. 1. Daniel Edward L. RicioFRANMAN – K32 Figaro Coffee CompanyA Filipino Heritage The Figaro Coffee Company was established in 1993 by a group of sevenfriends, whose zeal for coffee was acquired from their travels all over the world. This passion began as a hobby of brewing, tasting and experimenting with manyvarieties of coffee from around the globe. It soon grew into a business, with the purposeof sharing the fine art of European coffee culture with as many people as possible. The first Figaro Coffee Store formally opened in November 1993, a simple kiosklocated in one of Makati’s premiere malls. Originally, Figaro offered a selection ofspecialty coffees from around the world, as well as a variety of coffee and teaparaphernalia. The seven friends managed the Coffee Store themselves, serving theircustomers personally, and teaching them how to brew and enjoy their own coffee athome. This kind of personalized service endeared Figaro to its customers, generating adevout following of deeply serious coffee drinkers.Our Passion for Coffee Our Beans are Always Freshly Roasted. Coffee beans need to be roasted to bring out their irresistible flavor andaromatics. The sooner a roasted bean gets into a cup, the better the flavor. Freshness is very important to us. We roast our beans in world class qualityroasters, carefully watched over by roasting experts who make sure each bean is doneperfectly. Once roasted, the beans are packed and sent to the stores immediately toensure freshness. We make sure that every cup of coffee our customers enjoy is madeof the best quality, perfectly roasted beans. After all, you deserve only the best fromFigaro.
  2. 2. Share our Passion Today, Figaro boast 64 cafes in the Philippines. It is one of the fastest-growingcoffee chains, in just over 17 years of experience in the art and business of coffee. Webelieve in catering to upscale coffee lovers, offering coffees expertly roasted andbrewed according to the standards of French and Italian cafes. Figaro offers an ideal business opportunity that assures superior returnscompared to an independent business of similar scope. After penetrating theinternational market, we are now keeping a critical eye on expanding in our home-market, which will zero in mostly on business districts around the country as we wantmore and more people to experience the sophisticated European coffee culture throughour local barako coffee. With our new marketing strategies, we believe that the Figaro brand can capturea larger share of the coffee segment by providing a variety of new products to a broaderspectrum of customers.Our Business Models 1. Full Store Space Requirements: 60 – 80 square meters 2. Kiosk A Space Requirements: 30 – 40 square meters 3. Cart / Kiosk B Space Requirements: 20 – 40 square metersFigaro Support System From helping you secure your site to the thorough training of your employees,Figaro Coffee Company has a strong support system to aid you in the opening andongoing operation of your business. a. Initial site assessment. b. Training in the Figaro System for the franchisee and the Initial branch staff. c. Site design and construction assistance. d. Comprehensive Store Operations Manual. e. An opening team assigned for the branch’s first month of operations. f. Continuous research and improvement of the Figaro product line. g. Regular field visits by the Figaro Operations Team to give in-site assistance. h. Continuous training programs. i. A network of regular communications with franchisees.
  3. 3. Pre-qualificationThe qualities we look for in a franchise include: 1. A passion for coffee and enthusiasm for the business. 2. A strict adherence to Franchise Standards, and a commitment of time and resources to the Figaro System. 3. A desire for a mutually beneficial business relationship. 4. The resources to invest a minimum of ₱ 5 to 7 million, depending on the business model most suitable to the site chosen by the franchise applicant.Application ProcessTo get your own Figaro franchise system started: 1. E-mail a Letter of Intent containing name of interested party, expressing interest in a franchise and proposed site and location (if any) to Franchise Relations Manager: franchise@figarocoffee.com 2. Upon receipt of the Letter of Intent, we will schedule a Franchise Orientation Meeting with you to discuss the detailed procedures on how to secure a franchise. 3. Fill out the Franchise Qualification Form. 4. If qualified, you will be required to conduct a feasibility study of the selected site using our Market Study form. 5. Upon submission of the feasibility study, you will be scheduled for a meeting with the Franchisor to discuss the next steps.
  4. 4. Figaro Coffee Company (Franchise Package) Full Store Kiosk A- Kiosk B- CART Type Serves all Outdoor Indoor Serves coffee PACKAGES Figaro products Serves coffee, Serves coffee, and pastries pastries and pastries and cold cold sandwiches sandwichesFranchiseInvestment ₱ 6.5M ₱ 5.4M ₱ 4.2M ₱ 2Mestimated costFranchise Fee ₱ 1.5M + VAT ₱ 0.9M + VAT ₱ 0.9M + VAT ₱ 0.6M + VATRoyalty Fee 5% sales net of 5% sales net of 5% sales net of 5% sales net of VAT VAT VAT VATNational 2% sales net of 2% sales net of 2% sales net of 2% sales net ofMarketing VAT VAT VAT VATSupport Fund(MSF) Local Store 1% sales net of 1% sales net of 1% sales net of 1% sales net of Marketing VAT VAT VAT VAT Fund (LSM)Contract Term 8 years, 5 years, 5 years, 5 years, renewed every renewed every renewed every renewed every 4 years 5 years 5 years 5 years thereafter thereafter thereafter thereafter Renewal Fee 40% of current 40% of current 40% of current 40% of current franchisee fee franchisee fee franchisee fee franchisee fee Space 60 – 80 square 30 – 40 square 20 – 40 square 15 – 20 square Requirement per meter per meter per meter per meterNote: The aforementioned rates are subject to change without prior notice. Fees are exclusive of the lessor’s charges.Security Deposit:Full Store - ₱ 500,000.00 (not yet included in the Franchise Package)Kiosk - ₱ 350,000.00 (not yet included in the Franchise Package)Cart - ₱ 200,000.00 (not yet included in the Franchise Package)Total Investment – includes the following • Franchise fee • Training of the initial store team • Site assessment • Opening assistance from Operations Team • Site design • Store operations manual • Store Construction • Store equipment • Initial stocks
  5. 5. For franchising inquiries, please contact:Franchise DepartmentFigaro Coffee Systems Inc.5 Pines StreetMandaluyong City 1550PhilippinesMike T. BarretFranchise ManagerTel. (632) 632.1526 / (632) 635.0547 loc. 124Mobile: (63 917) 523.7864Fax: 747.3436E-mail: franchise@figarocoffee.comJenelyn C. RegnerBusiness Development OfficerTel: (632) 632.1526 / 637.5969Mobile: (63 922) 809.6767Fax: (632) 683.0724E-mail: jenelyn.regner@figarocoffee.comWebsite of Figaro Coffee Company: www.figarocoffee.com

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