report

1. Table of Contents
Introduction of Argentina................................................................................................................ 2
Population of Argentina.............................................................................................................. 4
Population in upcoming yeaPKR................................................................................................ 4
Hofstede Model of Argentina: .................................................................................................... 5
Argentina: Franchising In Argentina .............................................................................................. 6
Research on Dessert Preferences .................................................................................................... 8
Top Dessert Shops in Argentina ................................................................................................. 8
Top Five Desserts in Argentina .................................................................................................. 9
Desserts Ingredients in Argentina:.............................................................................................. 9
Here is what Argentine have to say about our Argentinian Desserts! ...................................... 10
About Rehmat-e-Shereen.............................................................................................................. 11
Menu of Rehmat-e-Shereen...................................................................................................... 11
SWOT Analysis of Rehmat-e-Shereen......................................................................................... 13
Hierarchy of Rehmat-e-Shereen.................................................................................................... 13
Competition................................................................................................................................... 14
Opportunity of franchising in Argentina....................................................................................... 14
Preferred Location......................................................................................................................... 14
....................................................................................................................................................... 16
Rehmat-e-Shereen in Buenos Aires, Argentina ............................................................................ 16
Franchising Model – Dunkin Donut ............................................................................................. 17
Dunkin Donut Franchise Model.................................................................................................... 18
1. Application......................................................................................................................... 18
2. Business Plan ..................................................................................................................... 20
3. Financial Review................................................................................................................ 20
4. Approval............................................................................................................................. 20
5. Grand Opening................................................................................................................... 21
Conclusion .................................................................................................................................... 21

2. Introduction of Argentina
Argentina, officially named the Argentine Republic, is a country located mostly in the southern
half of South America. Sharing the bulk of the Southern Cone with Chile to the west, the country
is also bordered by Bolivia and Paraguay to the north, Brazil to the northeast, Uruguay and
the South Atlantic Ocean to the east, and the Drake Passage to the south. With a mainland area of
2,780,400 km2
(1,073,500 sq mi), Argentina is the eighth-largest country in the world, the fourth
largest in the Americas, and the largest Spanish-speaking nation. The sovereign state is subdivided
into twenty-three provinces and one autonomous city, Buenos Aires, which is the federal capital of
the nation as decided by Congress. The provinces and the capital have their own constitutions, but
exist under a federal system. Argentina claims sovereignty over part of Antarctica, the Falkland
Islands, and South Georgia and the South Sandwich Islands.
The earliest recorded human presence in the area of modern-day Argentina dates back to
the Paleolithic period. The country has its roots in Spanish colonization of the region during the
16th century. Argentina rose as the successor state of the Viceroyalty of the Río de la Plata, a
Spanish overseas viceroyalty founded in 1776. The declaration and fight for independence (1810–
1818) was followed by an extended civil war that lasted until 1861, culminating in the country's
reorganization as a federation of provinces with Buenos Aires as its capital city. The country
thereafter enjoyed relative peace and stability, with several waves of European
immigration radically reshaping its cultural and demographic outlook. The almost-unparalleled
increase in prosperity led to Argentina becoming the seventh wealthiest developed nation in the
world by the early 20th century.
After 1930, Argentina descended into political instability and periodic economic crises that pushed
it back into underdevelopment, though it nevertheless remained among the fifteen richest countries
until the mid-20th century. Following the death of President Juan Perón in 1974, his wife Isabel
Martínez de Perón ascended to the presidency. She was overthrown in 1976 by a U.S.-
backed coup which installed a right-wing military dictatorship under Jorge Rafael Videla known
as the National Reorganization Process. The military government persecuted and murdered
numerous political critics, activists, and leftists in the Dirty War, a period of state terrorism that
lasted until the election of Raúl Alfonsín as President in 1983. Several of the junta's leaders were
later convicted of their crimes and sentenced to imprisonment. Argentina retains its historic status

3. as a middle power in international affairs, and is a prominent regional power in the Southern Cone
and Latin America. Argentina has the second largest economy in South America, the third-largest
in Latin America and is a member of the G-15 and G-20 major economies. It is also a founding
member of the United Nations, World Bank, World Trade Organization, Mercosur, Union of
South American Nations, Community of Latin American and Caribbean States and
the Organization of Ibero-American States. It is the country with the second highest Human
Development Index in Latin America with a rating of "very high". Because of its stability, market
size and growing high-tech sector, Argentina is classified as a high-income economy in the 2019
fiscal year.

4. Population of Argentina
The population pyramid illustrate the age and sex structure of the country in the year of 2018. In
total (male and female) the majority of population lies between the ages of 25-45. In Argentina the
male ration is comparatively higher than females.
Population in upcoming yeaPKR

5. The above table enlightens us by showing the Argentina population in the upcoming years.
Throughout the period the population of Argentina is rising and at the year of the 2018, the total
population is 44,691,517. From the past trends it can be seen that its population has been growing,
but at a slower rate and that’s mainly because of the decline in the birth rate. The growth rate has
remained steady at 1.03% since 2016.
Hofstede Model of Argentina:
Two of the factors from Hofstede Model will help us in deciding whether our franchise will work
in Argentina or not. And those two are "Uncertainty Avoidance" and "Indulgence". Uncertainty
Avoidance shows that people tend to avoid those circumstances which they are not similar off,
they are not risk takers, the higher the percentage the higher they avoid in getting into those
situations that they are not comfortable in. While the Indulgence shows to what extent people
spend for themselves, on their comfort, on luxuries, etc.
From the above table it can be seen that people are not risk takers, they avoid those things, which
they are not confident of. On the other hand, they spend on themselves too. The percentage of
Uncertainty Avoidance is 86%, while the Indulgence is 62%. But as mentioned, most of the
desserts in Argentina have the same ingredients as our Pakistani Desserts therefore coming up with
those desserts whose ingredients are what Argentinian are familiar with then they will definitely
try it and would love it too.
Moreover, if we see the below bar chart, it shows the hosftede of both Argentina and Pakistan. The
Blue one shows Argentina and the Purple one shows Pakistan. We can see that there is not much

6. difference between them in other parts but in indulgence there is a lot of difference. Argentina
indulgence is 62% which means people in Argentina like indulgence.
Argentina: Franchising In Argentina
It is important to know the rules of country where we are going to open up franchise. This is
because if we don’t have idea about it then it will be very difficult to get permission and work over
there. The franchise law in Argentina was updated on 1 January 2016. The Code follows the trend
set in a number of other jurisdictions around the world, which have introduced "half baked"
franchise regulations, introducing a number of unhelpful ambiguities or uncertainties to the
regulation of the franchisor/franchisee relationship. For example:
 Ownership - the new legislation prohibits the Franchisor from having a controlling
interest in the Franchisee's company, either directly or indirectly. This may mean that
certain standard provisions in an international franchise agreement may not be
enforceable, such as a right of first refusal to buy the Franchisee's business if it is the
controlling interest that is intended to be transferred.
 Disclosure - prior to signing a franchise agreement, the Franchisor is required to provide
to the Franchisee certain economic and financial information in relation to the Franchise
Business so that the Franchisee can assess its viability and make an informed decision on
the value of the opportunity being offered to them. This information must cover a
minimum period of two (2) years and must be in respect of similar units as those offered
to the Franchisee. This information can be about units in Argentina or abroad. It is

7. currently unclear whether a franchise system that has been in operation for less than two
years can open a franchise in Argentina due this requirement or whether it would be
sufficient for the Franchisor to disclose the financial information it has to date.
 Term - the minimum term of a unit franchise agreement must be four (4) years, unless it
falls into a special category. This essentially bans the creation of short term franchises
and may prohibit a Franchisor from testing the franchise system in the market as part of a
pilot franchise operation. Where the Franchisee has been granted area development rights
for the territory, the minimum initial term is five (5) years, whereas a master franchise
agreement does not have a minimum initial term.
 Termination - a franchise agreement may not be terminated early by either party before
the end of the statutory minimum term in the absence of breach. After the statutory
minimum term has expired, either party can terminate the contract by giving written
notice to the other party based on the length of the contract, i.e. the terminating party
must give one (1) month's notice per contract year up to a maximum of six (6) months. In
relation to consequences for breach of the Code, unless sanctions or penalties are
prescribed by the franchise agreement, it would appear that the sanctions are at the court's
discretion.

8. Research on Dessert Preferences
Based on the research carried out in 2018, on how many people eat dessert once a week or more
often, shows the extent the desserts are liked in Argentina. Apart from Teenagers and youngsters
all the age groups in Argentina prefer eating on weekly bases or most of the time every day after
dinner meal. It is a trend in Argentina that people specially go out on only having desserts.
Top Dessert Shops in Argentina
 Mamuschka- With a Monthly Footfall of 76%
 Grido- With a Monthly Footfall of 69%
 Grido Av Italia- With a Monthly Footfall of 79%
 Valence Argentina – With a Monthly Footfall of 75%
 Baccio- With a Monthly Footfall of 71%

9. Top Five Desserts in Argentina
1. Dulce de leche: It is made of sweetened milk that is heated and becomes caramelized to
create this nice sweet caramel milk paste. It is eaten practically at all meal times, including
breakfast where it is spread on bread or toast.
2. Alfajores: The Argentinian Cookies: Alfajores are some of the most prevalent sweet
specialty in Argentina. They are a type of cookie made of two sweet cornstarch biscuits
joined together with dulce de leche.
3. Rogel Cake: Rogel is a unique Argentina cake made of several layers of light pastry
separated by dulce de leche and topped with meringue. The layers of pastry are thin and
make for a nice soft cake.
4. Dulce de Membrillo: This Argentinian dessert is off the beaten path and is based on the fall
fruit called Membrillo or Quince in English. This fruit looks like a bumpy pear, but it is
not sweet in its raw state.
5. Vigilante: A Unique Argentinian Dessert: This is another unique dessert in Argentina that
is not commonly served in restaurant. It helps to know about it in advance because it is not
often sold at restaurants. Most porteños eat Vigilante at home.
Desserts Ingredients in Argentina:
Dessert Ingredients Description
Alfajor Biscuit, Chocolate,
Peanuts, Coconut
Sweet biscuits joined together with
mousse, dulce de leche or jam, and
coated with black or white chocolate and
topped with peanuts
Dulche De Luche Vanilla, milk, Sugar,
Peanut Butter
A Chocolate dessert
Rogel Cake Bread, egg, milk, sugar A bread based Dessert
Dulce De Batata Sweet potatoes A traditional dessert made of sweet
potatoes
Argentinian also uses the same ingredients in most of their desserts as we Pakistani use in our
desserts that means that even been uncertainty avoider they would try our items and once they try
then they will definitely like it.

10. Here is what Argentine have to say about our Argentinian Desserts!

11. About Rehmat-e-Shereen
Rehmat-e- Shereen has started its journey back in 1960 in a little town of Pakistan, Shikarpur,
under the ownership of Haji Muhammad. Initially he only introduced two products: Desi Ghee
(Butter Oil) and Khoya (Solid Milk) and then afterwards he started adding products to his shop.
The Bakery then spread to Karachi in order to capture taste buds of Karachities.
Over the years, it has successfully morphed its traditional techniques and methods of production
to modern methods with focused on international standards.
The main reason behind its success is providing persistent quality throughout years. It has a team
of professionals, who continuously check process that includes procumbent of material,
production, packaging and marketing. They also ensure quality control, quality compliance and
quality assurance.
Menu of Rehmat-e-Shereen
Menu of Rehmat-e-Shereen for Argentina is given below in table:
Main Menu Sub Menu Prices
Sweets Mix Mithai Box
Barfi
Rabri
Gulab Jammun
Kulfi
ARS280
ARS220
ARS280
ARS200
ARS20
Rabri is a sweet, condensed-milk-based dish, originating from the Indian subcontinent,
made by boiling the milk on low heat for a long time until it becomes dense and changes
its color to pinkish. Sugar, spices and nuts are added to it to give it flavor. It is chilled and
served as dessert.
Kulfi: It is a popular frozen dairy dessert originating from the Indian subcontinent during MughalIndia.
It is often described as "traditional Indian ice cream.
Barfi: It is Indian sweet made from milk solids and sugar and typically flavored with
cardamom or nuts

12. Gulab Jamun: It is an Indian sweet consisting of a ball of deep-fried paneer boiled in a
sugar syrup.
Menu of Rehmat-e-Shereen for Pakistan is given below in table:
Main Menu Sub Menu Prices
Sweets Mix Mithai Box
Angothe Pere
Arabic Baklava
Badam Pak
Cham Cham
Besan Pateesa
Cherry Halwa
PKR 600
PKR 600
PKR800
PKR 720
PKR 600
PKR 600
PKR 640
Nimcos Bombay Peanuts
Daal Moong
Daal Sev
Meetha Chewra
Gaathia
PKR 90
PKR 90
PKR 90
PKR 90
PKR 90
Desserts Gajar ka Halwa PKR 600
Dairy Dairy Butter
Pure Ghee
PKR 1000
PKR 800
Bakery Items Flaky Treat
NanKhatai
Rusk
Sandwich
PKR 110
PKR 230
PKR 60
PKR 80
Cakes Chocolate Moose
Cheese
Pinapple
Coffee Walnut
PKR 375/ Pound
PKR 375/Pound
PKR 550/Pound
PKR 347/Pound

13. SWOT Analysis of Rehmat-e-Shereen
Hierarchy of Rehmat-e-Shereen
The Hierarchy of Rehmat-e-shreeen for Argentina at the initial stage will be small. It will consist
of the manager who will be looking after the whole shop. There will be kitchen and serve staff
under him consisting of 3 each.
STRENGTH
• Popular Brand Name
• Loyal and repeat customer base
• Symbol of Quality
• Good number of Market share
• Old name in market
• Prestige
• Unique and Varied flavors
WEAKNESS
• Perishable items
• Lack of interdepartmental
coordination
OPPORTUNITIES
• Opportunity to expand in Argentina
• Low competition in Argentina
• Diversified
THREATS
• Political instability
• Foreign Currency fluctuations
• Competition
Manager
Kitchen Staff Serving Staff

14. Competition
Competition is, in general, a contest or rivalry between two or more entities. In our case, there is
huge competition because there are number of desert and bakery shops operating in Buenos Aries.
This is because people in Argentina like tasting new food and deserts. According to the consumer
pattern of 2018, majority of the part of household income is spent on food consumption. Overall,
all the food and bakery restaurant are our competitor but some of the direct competitor are
smerterling, Rapanui, Buenos Aries Bakery. These are some of the best restaurants in Buenos
Aries which are also known all over Argentina. The reason why these are our direct competitor
are because they sell the products that have the same indigrients that will be used by us in our
menu. Moreover, keeping in view the competition, we will have an idea of how much price people
are charging and we can get idea from it so it will help us in making finance.
Opportunity of franchising in Argentina
Argentina is rich in natural resources and has educated citizens with total population of 43.847Mn.
92% of its population lives in cities and 15 million are resident in its capital, Buenos Aires.
Therefore, Buenos Aires, Cordoba, Rosario are said to be interactive cities of franchisor because
the high consumption demand that is there.
Currently, 644 franchises are operating in Argentina with getting $7.89 billion revenue. The trend
of franchise has gone up in 2003 when country was facing unstable situation of financial
institutions. Argentines withdrew their money and saving from bank and started investing in
franchise companies. 70pc of its franchise are supporting by its local investor.
Preferred Location
The location that we have selected to open the desert bar Rehmat-e-Shereen is Buenos Aires city.
The Buenos Aires is the capital of Argentina and well known for the Desert shops. This city has
some of the best well known desert shops and foods shops. It is said if you have a sweet tooth,
Buenoes Aires is the perfect place for you. There is never ending supply of sweet and it city is full
of temptation.

15. The major reason for opening up franchise in Buenos Aires is that the government of the City of
Buenos Aires announced that it’s launching an initiative to support local startup accelerators that
focuses on early-stage startups. The initiative will provide an investment of AR$28 million (USD
$3.5 million), of which AR$18 million (US$2.25 million) will go to five accelerators.
According to the International Finance Corporation, founders can start their business for under
USD $300 in a few days. Furthermore, there is currently a high skilled-labor-to-low-cost ratio in
the city. That is because Argentina has the highest rate of university students in Latin America. So
startups can have a staff of highly competent employees for less than they would have to pay if the
company were based in the United States.
Moreover, another reason for opening up store in this city Buenos Aires is it a pretty special city
that offer a variety of delicious menus for affordable price. This means there is a opportunity to
open a desert bar because people live to eat in this city.
Another big reason for opening a shop in BA is that it is a reasonable cost of doing business.
Argintena government welcomes foreign investment.
Finally, BA is in the same time zone as many cities in the US, which helps with faster delivery
times, more agile development cycles, and better communication with clients between both
countries.
The exact location for the franchise will be Thames 1885 Palermo, Buenos Aires, Argentina

16. Rehmat-e-Shereen in Buenos Aires, Argentina

17. Franchising Model – Dunkin Donut
Dunkin Donut sells variety of products that includes: Coffee, Dount, muffin and bakery item to
its customer. We will take Rehmat-e-Shereen to Argentina which is also considered as famous
bakery of Karachi, Pakistan, serves different products on daily basis. Both bakeries have almost
same product line along with focusing on providing quality products to its customer.
The table given below has carried all investment details of opening up a dunkin donut franchise.
2018
Heads Low High
Initial Franchise Fee $40,000 $90,000
Building Costs $19,500 $588,653
Site Development Costs $0 $295,500
Additional Development Costs $4,700 $150,000
Real Estate Costs $322.10(ARS12,044.41) $800(29,924)
Equipment, Fixtures and Signs $25,000 $269,250
Electronic Cash Register $16,000 $61,000
Opening Inventory $4,000 $20,000
Miscellaneous Opening Costs $9,500 $70,000
Licenses, Permits, Fees and Deposits $500 $5,500
Uniforms 0 $1,200
Insurance $4,500 $16,000
Travel and Living Expenses While
Training
$2,000 $35,000
Marketing Start-Up Fee 0 $10,000
Additional Funds for First 3 Months of
Operation
0 $10,0000
Estimated Total (doesn't include real
estate costs)
$97,822.1 $1,717,903

18. Dunkin Donut Franchise Model
In order to open a franchise of Dunkin Donut, a candidate has to go through a complete process
set by DD on its website.
1. Application
The first step to become eligible for its franchising is to prove a credibility and passion in front of
them. For that, a candidate must have to have a certain experience in food or retail industry
followed by a clear understanding of real state process of development. Secondly, the monetary
value is also matter in case of DD franchise as a candidate needs to have minimum liquid asset of
worth $250,000 and net worth of $500,000 per restaurant.

19. Once a candidate clears this process, he/she can move towards application form that consist of six
parts attached and discussed below.
The requirement check contains all same elements of candidate requirement. In second step, a
candidate has to choose a “traditional or non-traditional store” where he/she wants to open DD
outlet. A non-traditional stores are designed at unique venues (including airports, transit terminals,
stadiums, hospitals, grocery stores, casinos and universities) where people stay for a longer time
and has high traffic site.
In third step, candidate has to give brief personal introduction along with disclosing financial
figures. The application form will also ask to attach a resume, this will surely help a candidate to
give good impression if he/she has prior experience in food industry to those who will review
resume.
After giving all details, candidate will have an option ot review his application and then submit it.
This application then review by DD franchise team and response back to candidate to further fill
documents that includes: Franchise Disclosure Document (FDD), which covers information about
the franchisor, the franchise system, and the contract/agreement that will be essential to open a
franchise. FDD also contains information like DD financial statements, franchisee contacts, cost
breakdowns, initial franchise fees, advertising fees and royalties. This form is designed to assist in
you in making an informed decision about opening a Dunkin’ Donuts franchise.
In last, candidate will be asked to prove his citizenship through providing Permanent Resident/
green card/Alien Registration Card. Additionally, Candidate has to provide proof of assets so that
the DD can ensure that he/she has the financial resources and stability that will be required to open
a franchise. Candidate will also be required to submit a credit and background check as well.

20. 2. Business Plan
Once the application process and initial screening are done, the candidate will have to meet
franchise manager in order to understand how to make and develop business plan for DD franchise.
Other franchise owners will also invited to share their experience and provide guidance of what to
do and what not to do.
Secondly, Candidate has to make a business plan in order to demonstrate his/her ability to run and
operate DD franchise. Candidate’s financial capability will be checked based on all the information
that has mentioned in business plan. The other necessary information that should be included in
business plan given below:
1. Details about the local market where franchise will be opened.
2. Information about competitors in that area.
3. Financial model for managing DD franchise.
4. Products that will be served in that specific Country.
3. Financial Review
An in-depth review of candidate financial plan for franchise will be conducted based on business
plan. He must have a thorough model of finance for running franchise to present in front of
franchise manager. As long as he has provided a detailed financial plan in business plan, he won’t
have to do anything more as undergo review.
4. Approval
A candidate then receive franchise approval once the financial and background checks are done,
after gone through financial review, and after submission of business plan. Approval will only be
given to those candidates who fulfil all the necessary requirements of franchise owners.
Training before Grand Opening
Before a candidate open up his first outlet, he will be required to attend a 3-days training sessions
held in Boston. After completing this session, he must have to complete the Dunkin’ Donuts Core
Training program. This program is designed to teach a candidate about the importance of brand
and about restaurant management along with manufacturing and production of products.

21. 5. Grand Opening
After a finalization of lease or purchase, an outlet is all set for grand opening. A franchisee will
want to make this event a celebration to attract attention of potential target customers.
He can offer deals or incentives for first day attending grand opening. For example, He may want
to reward the first walk in customer with a gift card to Dunkin’ Donuts. This can help him in
attracting and retaining customers
Conclusion
In last, it can be concluded that Argentina is a good place to start franchise. This is because it
growing. It went down in last few years but economy have started going up again. The major
reason for taking Rehmat-e-Sheeren to Argentina was that people in Argentina are desert lover.
They have a sweet tooth. They are always ready to taste new desert items, so Rehmat-e-Shereen
was a good option for franchising because they have a good quality sweets and have a wide range
of period. At initial stage we will be taking only 4 items from the wide menu and as the work will
begin, the menu will be growing. Moreover, the reason for taking franchise model of Argentina
was that Donkin Donut is very well known and comes in Top 100 international Franchise model.
Moreover, they have clear rules and requirement due to which we selected it. We hope our
franchise will do good business in Argentina because we have kept out prices competitive.

22. References
https://theodora.com/wfbcurrent/argentina/argentina_people.html
https://countrymeters.info/en/Argentina
https://www.populationpyramid.net/argentina/2018/
https://www.puertolaboca.com/blog/2017/8/9/see-what-our-fans-think-about-our-argentinian-
desserts
https://www.marketresearch.com/Food-Beverage-c84/Food-c167/Desserts-c486/
https://topfranchise.com/international-franchise-opportunities/south-central-america/franchises-
in-argentina/
http://www.dunkinfranchising.com/franchisee/en/process.html
https://www.franchisedirect.com/foodfranchises/dunkin-donuts-franchise-07676/ufoc/
http://www.madehow.com/Volume-5/Doughnut.html
https://www.wikihow.com/Open-a-Dunkin%27-Donuts-Franchise