Restaurant Franchise Proposal

A restaurant franchise proposal is a document prepared by a company, that is interested in opening a restaurant franchise. This document is presented to a client company, in which the offering company provides the relevant details of the restaurant franchise for the client company to consider and accept. Either the proposal is sought by the client or the company wants to initiate the project itself.

The restaurant client companies often seek investors who are willing to open a franchise, using their name. There could be various reasons behind that, such as:

The client wants to expand.
It does not have the capital to invest.
It is ready to relinquish control.
It wants to earn money from franchise licensing.
It wants to share marketing costs.

The restaurant proposal is prepared considering:

The requirements of the client company.
The extent of the essential, relevant and significant information. This affects the comprehensiveness and in-depth analysis to be presented in the proposal.
The available capital and business idea of the company.
The size, location and target audience of the restaurant franchise.

Although the above factors, and many more, influence the information provided in the restaurant franchise proposal, the general details included in all the proposals remain the same, which are:

Executive summary.
Introduction/company profile.
Details of the restaurant franchise, including location, size, number of employees, target audience, type of menus, market trends, success probability, growth trends, etc.
Financials, including capital investment, costs, profits, sales forecasts, etc.
Experience, expertise and competitive edge.
Convincing arguments.
Benefits to the client company.
Mutual benefits.
Terms and conditions.

Sample Template

By:

XYZ
Chicago, Illinois

To:

007 Burger
Fast Food Restaurant

Executive Summary

007 Burger is one of the top growing franchises in the United States. Our company wants to invest in this franchise and we want to open a branch of 007 Burger in northern Chicago, on Alberta Street. As your brand is positioned for the average customer, we think this will be an ideal location for it. Michael Douglas and I have been in the food industry for more than 2 decades. Having a deep understanding of the Food Service Industry, we have high quality and cleanliness standards and we are certain that this new branch of 007 burger chain, will definitely contribute hugely to the growth of the business.

Company Introduction

007 Burgers is an American fast-food franchised restaurant chain. Their specialty is their juicy and tender burgers. 007 burgers use the best quality meat and high standards for food preparation. The extraordinary taste and quality are clearly evident in their business growth. At present, 007 Burger has more than 20 branches across the United States and around the globe. The company headquarters is in Chicago, Illinois.

Products

007 is known for its delicious burgers, but they also serve many other items. They serve burgers in various varieties and flavors. Their main focus is on hamburgers, but fish and chicken burgers are also very well received. Our branch will also sell all these products. The list is provided below:

Burgers

Sizes: Small, Medium, Unbeatable

Variety:

Burgers

Hamburger
Spicy Hamburger
Hawaiian Hamburger
Cheese Burger
Chicken Burger
Spicy Chicken Burger
Crispy Chicken Burger
Fish Burger

Fries

Normal Fries
Cheese Fries
Coated Fries
Spicy Fries

Salads

Cream Salad
Greek Salad

Dips

Garlic dip
Spicy dip
Honey mustard dip

Opportunity

Alberta Street is a very lively and trendy place. There are a few malls and retail stores on the street. A lot of universities are beside the road and the footfall is very decent. Our main competitor will be ABC fast food. All the other fast-food restaurants are far from Alberta Street so 007 Burger must explore this area to get a big share of the market. People are waiting anxiously and excitedly to try new cuisines and restaurants. XYZ will bring in the initial investments to start up the new branch of 007 Burger and would be working on the project pro-actively and simultaneously sharing ideas and resolving issues together. Our aim is to

Open the first branch of 007 Burger in this community
Gain profitability and extend the franchise brand internationally and nationally

Management/Staff

Our team has experience of more than 20 years in the foodservice business.

Owner: Michael Douglas

Experience: Food Industry

Time: 20+ years

Qualification: MBA from the University of New York, 2001

Owner: James Charles

Experience: Food Industry

Time: 10+ years

Qualification: BS from the University of Chicago, 2009

Manager: Alisa Johns

Experience: Food Industry

Time: 10+ years

Qualification: BS from the University of Chicago, 2008

Certification of Hotel Management

Summary Financials

I and my partner will bring in all the investment, including the start-up cost and the running cost. We will invest a total of $100,000 in your franchise. We will pay the royalties or the Franchise fee to 007 Burger. Your company can work up the reasonable fee amount and let us know about the details.

Market Analysis

Our target market consists of students, tourists, office workers and families in northern Chicago. There are more than 20,000 people living in this region. Eating out and takeaway is becoming more and more common these days, so families and friends can enjoy food together without the hassle and fast foods are what they look for. We believe there is a need for fast food in this area because it is affordable and quick.

Marketing Strategy

Our goal is to become the largest burger selling fast-food chain in the region and gain the biggest amount of customers

We will be focusing on the following

To provide freshly prepared comfort food
To be the best fast-food chain in the region
Create such an outlet that provides our consumers with a place to socialize and share their joyous occasions.

Marketing

We will work with your company’s comprehensive marketing plan and you can provide us the outline which we can follow to prepare for marketing on the local level. Meanwhile, the following is what we have in mind:

Distribute and place flyers in the surrounding shops and communities.
We will offer discount vouchers offering different promotions
A big launch party at the restaurant for the opening night
Offer 25% off during the first week
Free delivery for the first month

Timeline

Steps	Description	Time
Proposal Acceptance	Both the parties will sign the contract	1 week
Approvals	Get all the necessary approvals and permissions. Get approval of the restaurant design.	2 weeks
Construction	Prepare the land for the physical construction of the restaurant	12-14 weeks
Order Equipment	Order all the cooking, serving equipment for the restaurant	2-3 weeks
Employee Training	Employees will be trained by the franchise company trainers	4-6 weeks
Restaurant opening	Opening of the 007 Burger fast food restaurant	1-2 days

Start-up Cost

We would like to invest $100,000. An estimated amount of start-up expense detail is provided below:

Names	Cost
Legal paperwork	$1,000
Marketing	$1,000
Restaurant construction	$20,000
Rent (1-year advance)	$5,000
Insurance	$5,000
Facilities	$10,000
Equipment	$10,000
Stationary /Menus/Flyers	$2,000
Crockery	$10,000
Inventory	$20,000
Cash	$5,000
Miscellaneous	$1,000
Total	$90,000

Terms and Conditions

All purchases made will be first approved by your company.
This document should not be disclosed to any third party without the consent XYZ Company.
Monitoring the customer base and sales will be the responsibility of 007 Burger.