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

1. Daniel Edward L. Ricio
FRANMAN – K32
Figaro Coffee Company
A Filipino Heritage
The Figaro Coffee Company was established in 1993 by a group of seven
friends, 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 many
varieties of coffee from around the globe. It soon grew into a business, with the purpose
of 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 kiosk
located in one of Makati’s premiere malls. Originally, Figaro offered a selection of
specialty coffees from around the world, as well as a variety of coffee and tea
paraphernalia.
The seven friends managed the Coffee Store themselves, serving their
customers personally, and teaching them how to brew and enjoy their own coffee at
home. This kind of personalized service endeared Figaro to its customers, generating a
devout 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 and
aromatics. 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 quality
roasters, carefully watched over by roasting experts who make sure each bean is done
perfectly. Once roasted, the beans are packed and sent to the stores immediately to
ensure freshness. We make sure that every cup of coffee our customers enjoy is made
of the best quality, perfectly roasted beans. After all, you deserve only the best from
Figaro.

2. Share our Passion
Today, Figaro boast 64 cafes in the Philippines. It is one of the fastest-growing
coffee chains, in just over 17 years of experience in the art and business of coffee. We
believe in catering to upscale coffee lovers, offering coffees expertly roasted and
brewed according to the standards of French and Italian cafes.
Figaro offers an ideal business opportunity that assures superior returns
compared to an independent business of similar scope. After penetrating the
international 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 want
more and more people to experience the sophisticated European coffee culture through
our local barako coffee.
With our new marketing strategies, we believe that the Figaro brand can capture
a larger share of the coffee segment by providing a variety of new products to a broader
spectrum 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 meters
Figaro 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 and
ongoing 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. Pre-qualification
The 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 Process
To 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. 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 sandwiches
Franchise
Investment ₱ 6.5M ₱ 5.4M ₱ 4.2M ₱ 2M
estimated cost
Franchise Fee ₱ 1.5M + VAT ₱ 0.9M + VAT ₱ 0.9M + VAT ₱ 0.6M + VAT
Royalty Fee 5% sales net of 5% sales net of 5% sales net of 5% sales net of
VAT VAT VAT VAT
National 2% sales net of 2% sales net of 2% sales net of 2% sales net of
Marketing VAT VAT VAT VAT
Support 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 meter
Note: 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. For franchising inquiries, please contact:
Franchise Department
Figaro Coffee Systems Inc.
5 Pines Street
Mandaluyong City 1550
Philippines
Mike T. Barret
Franchise Manager
Tel. (632) 632.1526 / (632) 635.0547 loc. 124
Mobile: (63 917) 523.7864
Fax: 747.3436
E-mail: franchise@figarocoffee.com
Jenelyn C. Regner
Business Development Officer
Tel: (632) 632.1526 / 637.5969
Mobile: (63 922) 809.6767
Fax: (632) 683.0724
E-mail: jenelyn.regner@figarocoffee.com
Website of Figaro Coffee Company: www.figarocoffee.com